CA Used Car Dealer Insurance

Insurance for California used car dealers 

Managing a used car lot requires a lot of dedication and hard work. This is why having a comprehensive policy for your business is so important. The coverage needs to be tailored to the risks related to the dealership’s explicit liabilities and assets.

You can get top-rated insurance when you visit Safepro Insurance. Get a quote right now by calling 888-411-7679 or submitting an online form! 

What are the benefits of used car dealer insurance?

Getting dealership insurance is a simple matter of protecting your finances.

  • You could lose money if something goes wrong at your car dealership.
  • They might blame you if there’s a problem if they expect top-notch service from you.
  • You have a financial obligation to your employees to ensure a safe working environment.

Your dealership has daily obligations for which you are responsible. In the event of a problem that you can’t avoid and can’t prevent, having insurance can cover the costs of recovery. Thus, you will be able to have more assurances that such losses could be recovered. 

How do used car dealers manage their risks? 

Your dealership can be protected with insurance against accidents that occur unexpectedly. Listed below are some possible accidents that may happen at the dealership:

  • The business might be damaged by a hazardous incident like a fire, severe weather, or even burst pipes. Your office materials may be destroyed, your property damaged, and your cars may not be sold. Your losses could be substantial.
  • Theft of vehicles or vandalism of stock are possible on your lot. This can result in you losing another sale.
  • Clients may suffer injuries in your office or while test driving one of your vehicles. Dealerships may be sued for any harm caused.
  • Someone might accuse you of misrepresenting a sale and causing them financial loss. If that happens, you could face costly lawsuits.

You will be able to determine which policy best suits your dealership’s specific needs. 

Used car dealers need what type of insurance? 

A few dealers export cars, others wholesale them, some sell high-end cars, others have a large inventory, and others buy exotic cars. Each dealer requires different parts of commercial insurance. Discuss these with your insurance agent:

Garage Insurance: There are many varieties of garage insurance, but they all serve different functions.

  • A garage liability policy covers policyholders for property damage and bodily injury a third party may sustain when visiting your property. As well as in your garage, coverage is available when using insured vehicles.
  • Legal liability coverage for garage keepers: If a customer’s car is damaged while under your care, this coverage will pay for repairs or replacements. You are typically required to carry this coverage.
  • Insurance protection for garage keepers: This also includes cover for damage to vehicles owned by customers. Regardless of whether you are legally responsible for paying for the damage, this protection will kick in.

Vehicles owned by the business are covered under open-lot coverage. For example, here are the vehicles on your lot that you intend to sell. Depending on the policy, the insurance company may provide coverage for collisions and other occurrences such as thefts, hailstorms and vandalism.

A dealer’s drive-away coverage protects you in case of an accident when you take a vehicle off your lot, such as to a drop-off. In the event of damage, you can claim the coverage.

Insurance coverage for uninsured/underinsured motorists: If one of your vehicles sustains damage, the party at fault for the crash might not be covered by their liability policy. The policy can assist you in recovering without being at fault.

Schedule of covered vehicles : A schedule of covered vehicles adds a degree of more-specific protection. The policy will list specific vehicles on your lot. Those vehicles will be covered in accordance with the policy’s terms.

False pretenses and truth in lending: It is possible that people visiting your dealership will try to steal a car under false pretenses. You may even be presented with false documents to convince you that they deserve the car. You may be able to recover the car under this coverage.

Insurance for professional liability: This coverage protects you in case your customer is dissatisfied with your services (known as errors and omissions). They might accuse you of lying about a vehicle’s quality and demand compensation or bring a lawsuit against you. You should include this coverage in your policy:

  • Odometer errors and omissions: Rolling back the odometer on a car to make it look like it has fewer miles is unlawful. You may be faced with significant challenges should such allegations arise.
  • A title error or omission: Owning a car means owning the title to the vehicle. If the title is paid off, you transfer full ownership to that person. Having this coverage can protect you if you are accused of lying or fabricating a title.

Services that are tailored to your needs: At Safepro Insurance Services, when you come to us for insurance, we want to meet the following three goals:

  • Quick Insurance Quote: When you work with us, you will save time and money because we provide quick quotes, knowledgeable staff, and executives who understand your needs as well as policies that are tailored to your type of business. Getting covered with us means that you’ll receive both quality coverage and affordability.
  • Customer Service: Choosing an insurance agency you can trust means knowing that it is not about us. Instead, it’s about you. Your livelihood is too important to work with someone who treats you like a number. You should come to us for long-term relationships, respect, and advice.
  • Customer satisfaction: We want to make sure that you have the right commercial insurance at the end of the day.

You can reach one of our agents by calling 888-411-7679 right now. If you are looking to protect your business, we are ready to help. 


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