Franchise and Independent Auto and Truck Dealerships
We provide comprehensive coverage for Franchise and Independent Auto and Truck dealerships with a variety of coverage options thru multiple carriers. Whether a dealership is small or large, our comprehensive coverage will insure the physical damage to inventory (cars and trucks) on the lot along with covering the service and repair operation and parts operation.
Typical coverages a dealership package would include:
GARAGE LIABILITY: Provides general and automotive liability coverages in one form for insureds who operate a garage.
DEALERS OPEN LOT: “Open Lot” is a term used for insuring the physical damaged caused to your auto, truck or recreational vehicle by a covered cause of loss which typically includes wind, hail, flood, fire, vandalism and collision. Rates are determined by the acquisition cost of your inventory, lot protection- whether kept inside or outside, maximum value of any one vehicle, geographical location of covered inventory and past lost ratio performance. The tricky part of insuring open lot correctly is accurately insuring to value. If a loss occurs at time when the dealer has a limit higher than insured value on the policy the insurance company can apply a penalty due to co-insurance. An example using round numbers would be an Insured has inventory of $500,000 of cars when the loss occurs, he had originally written a policy for $250,000. In the event of a claim the insured would be underinsured by 50% and the insurance company would only be responsible for paying you 50% of your claim minus your deductible. Therefore, it is very important to insure your inventory at current values.
GARAGE KEEPERS LIABILITY: When your operation does automotive or collision repair work on vehicles that are not owned by the dealership, you need this coverage to protect against damage to your customers’ vehicles in your care, custody and control. Garage keepers liability can be written on a direct primary basis to cover acts of god such as wind, hail or flood or on a more limited legal liability basis. Let us help you make the decision that best suits your needs based on direct repair programs and the scope of your operation.
AUTO LIABILITY: Provides liability coverage while test driving owned or customer autos, on service loaners and on shop vehicles being used to deliver parts.
E & O COVERAGES: Certain errors and omission coverages related to the operations of used car dealers may include: Truth in Lending/Leasing Liability, Federal Odometer and Title Errors and Omissions.
UMBRELLA COVERAGE: Umbrellas provide excess coverage on top of your underlying liability coverage of $1,000,000. Umbrellas are relatively inexpensive compared to your overall package and are a necessity in todays litigious environment. Umbrellas can be written from $1,000,000 to $25,000,000 excess of your underlying limit.