Skip to the content

Used Car Dealer Insurance

While most people are aware that car insurance coverage is required for anyone driving a personal vehicle, the insurance for car dealerships is a little bit different.

Car dealerships are not required to individually insure every vehicle on their lot. However, they are required to maintain certain kinds of overall coverage policies that include the vehicles on the lot.

Used Car Dealer Insurance Options:

  • Garage Keepers Liability
  • Garage Liability
  • General Liability
  • Dealer Plate Insurance

Car Dealers have unique insurance needs. At VanScoter Insurance Agency in Rochester, New York, our agents understand the challenges and risks in running a car dealership. We can custom tailor a policy with the right coverage in the right amounts to protect your business.

Every business incurs a certain amount of risk but used car dealers are responsible for keeping people safe on their lot, while customers are test driving a vehicle and insuring the value of the vehicles on their lot.

Commercial General Liability protects companies from incidents that can occur involving customers or other individuals on the property who do not work for the business. 

Dealer Plate Insurance provides protection for vehicles and drivers out on the road test-driving. Dealer plate insurance coverage is particularly important because car insurance is required in order to drive a vehicle. At the time of a test drive, the vehicle is owned by the dealership, not the driver. With this coverage, a dealer can affix a dealer plate to any vehicle that a customer wants to test drive and that vehicle will be covered by the liability insurance provided by the dealer plate insurance.

An option under the Dealer Plate Insurance Policy is to insure the value of your vehicle inventory, in addition to the liability insurance provided. You may be required to carry dealer inventory coverage if you use a dealer finance company to help you purchase your inventory. The Vehicle Inventory Coverage is going to provide coverage if your vehicle is damaged in an auto accident, if a vehicle is stolen or if vehicles are vandalized on your lot.

If you opt to add the Vehicle Inventory Coverage to your Dealer Plate Insurance Policy, you’ll want to watch the below video: