Dealer Insurance 101
Garage Liability - This comprehensive policy provides liability coverage for dealers and non-dealer’s auto and premises. This policy protects the policyholder during customer test drives, transporting vehicles from auctions and the business’ employees driving autos.
Garage Keeper’s Coverage - In addition, the policy can protect vehicles that are not owned by the dealer but the dealer has care, custody or control of a customer vehicle.
- Garage Keeper Legal Liability -The insured is protected against legal Liability (negligence of the insured) for physical damage to customer’s autos left for storage, safekeeping, service or repair.
- Garage Keepers Primary - Optional coverage for claims regardless of legal liability as primary coverage.
Dealer’s Open Lot – Protects the vehicle inventory for physical damage coverage. Physical damage may include coverages such as fire, theft, collision, vandalism, and other perils.
Scheduled Vehicles – This option on a garage liability policy allows specific autos, towing vehicles or towing devices to be covered under the policy’s liability and for physical damage.
Specialized Enhancements (Optional)
Broadened Coverage – Standard policies do not provide coverage for Host liquor, Fire Legal Liability, Personal & Advertising, spouse of partners as an insured, incidental medical malpractice, automatic liability coverage for newly acquired locations, etc. This optional endorsement offers these needed broadened coverages.
False Pretense – Covers the insured when a covered automobile is taken in a fraudulent manner or acquiring an automobile from someone who did not have legal title to the vehicle.
Truth-In-Lending Errors and omissions – Protection against claims alleging a dealer did not comply with the Consumer Credit Protection Act or other similar laws. Odometer Statuses Errors and omissions – Protection against claims alleging a dealer did not comply with federal or other odometer disclosure laws.
Title Errors & Omissions – Provides coverage when a dealer is held liable for an act, error or omission in the preparation of title papers.
Insurance Agents Errors & Omissions – Needed if a dealer is involved in selling life, disability or other insurance related products in conjunction with the sale of a vehicle. This coverage provides protection against loss resulting from a dealer’s negligent acts or omissions that arise while performing such services.
Dealer Drive Away Coverage – Standard garage policies do not provide coverage if a dealer vehicle is driven more than 50 miles from the garage location. This program will allow for additional charge.