Different Insurance Coverage Options for Used Car Dealerships

When operating a car dealership, it’s important to take the time to study the different insurance coverage options available for car dealerships. These insurance coverage options can help both the dealer and the buyer in maintaining good business relations, while providing additional services for the car buyer’s advantage.

The general notion on insurance for used car dealers is that it’s more expensive, since the insurance company has no idea on the buyers of used vehicles. This situation leads to the idea that the limits for the liability coverage for the vehicle are much higher as compared to personal auto insurance coverage. The limit for the coverage depends on the state where the buyer and the dealership is located, since liability limits vary depending on location, the body injury per accident and per person, and property damage in case of an accident.

There are optional and mandatory insurance coverage options that used car dealers should be aware of. Garage liability coverage provides protection to dealers in case customers encounter accidents or sustain injury while their cars are serviced in the dealerships’ garage. In such cases, the coverage helps cover the medical expenses or compensation resulting from settlement with the injured customer.

Auto liability is also an insurance option for the used car dealers Indianapolis is home to. This insurance option provides protection on the part of the dealer when a buyer sues the dealership for a particular vehicle accident. In most cases, this coverage also falls under garage liability coverage.

The dealer’s open lot coverage accommodates physical damage on the car owned by the car dealer. The damage coverage includes fire and theft, collision coverage, comprehensive coverage, and specified causes including explosion, fire, lightning, windstorm, mischief, hail, vandalism, and flood. Most used car dealers Indianapolis is home to have a set insurance limit when it comes to these instances.

Used car dealers Indianapolis can also opt for garagekeeper’s liability coverage. Similar to the dealer’s open lot coverage, this insurance type is usually based on the car dealer’s actions (repair or body work) on cars that they do not officially own. For added protection, used car dealers can also acquire false pretense coverage, which covers car loss if the car dealer falls victim to a scam.