CA Used Car Dealer Insurance
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Used Car Dealer Insurance for Los Angeles and Greater Southern California
We fully understand how much work and dedication that it takes for you to run a used car lot. As a result, it is so important for you to carry a comprehensive business insurance package. You must have tailored coverage that pertains to the explicit liabilities and asset risks in and around the dealership.
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Why do used car dealers need insurance?
The simple answer for why you need business insurance for your dealership: It protects you financially.
- There is money in your car dealership that you could lose if something goes wrong.
- Clients expect you to offer exceptional services and might blame you if a problem occurs.
- Your employees expect a safe working environment and you have a financial duty to them.
In other words, you have obligations you must meet in your dealership every day. Insurance coverage can help you pay for recovery costs in case a problem occurs that you can’t expect and can do little to prevent. Therefore, you can have more assurances that you can recover from such losses.
What risks do used car dealers face?
With insurance, you can protect your dealership from the unexpected accidents life might throw at you. Think about some of the accidents that might occur within your dealership:
- A hazardous incident like a fire, severe weather or even burst pipes might damage the business. You might lose your office materials, sustain property damage and even lose the cars you had hoped to sell. That could set you back a pretty penny.
- Someone might steal vehicles off your lot or vandalize stock. That’s another sale you might lose.
- A client might get hurt in your office or during a test drive in one of your vehicles. They might sue the dealership for the harm they sustained.
- You might face allegations that you caused someone financial losses because you misrepresented a sale. That could lead to lawsuits and other costly actions.
Our agents will help you pinpoint the policy that targets the specific threats facing your dealership.
What insurance do used car dealers need?
Some dealers are exporters, some are wholesale, some sell high-end cars, some have large inventories and others buy exotic cars. The commercial insurance elements each dealer needs will vary. Ask your agent about the following policy elements:
Garage Insurance: This coverage usually comes in several different forms, but all serve different needs.
- Garage liability: Covers policyholders in case a third party sustains property damage or bodily injuries when they come onto your property. Coverage can apply both in your garage and during the use of insured vehicles.
- Garage keeper’s legal liability: Should a customer’s vehicle sustain damage while in your care, this coverage can help you pay to repair or replace the damaged car. Usually, you will have a legal obligation to do so.
- Garage keeper’s direct primary insurance: Coverage also applies to damage done to customers’ vehicles. However, this protection will kick in regardless of whether you have a legal obligation to pay for the damage.
Dealers Open Lot Coverage: Coverage applies to the vehicles owned by the business. For example, these are the cars on your lot that you plan to sell. Policies might provide coverage for vehicles involved in collisions and vehicles damaged through other hazards like fire, theft, hail or vandalism.
Dealer drive away coverage: If you take one of the vehicles on your lot off the lot, such as to a drop-off, there is a chance that you could get in an accident. This coverage can help you pay for the damage.
Uninsured/underinsured motorist coverage: Should one of your vehicles sustain damage, the party at-fault for the accident might not have appropriate liability coverage to compensate you. This coverage can help you finance your own recovery without fault.
Scheduled vehicles coverage: Coverage adds a degree of more-specific protection for individual vehicles in your care. You’ll list certain cars on your lot on the policy itself. They will have guaranteed protection within the policy’s parameters.
False pretense, truth in lending coverage: If someone visits your lot to look at a car, they might use it as an excuse to steal the car. They might even present you with false documentation to convince you that they have the right to the car. This coverage can help you recover the car after these losses.
Professional liability insurance: Also called errors & omissions (or E&O) protection, this coverage can help you if a customer is dissatisfied with a sale. They might allege you lied to them about a vehicle’s quality and expect compensation or even file a lawsuit. Ask your agent to include on your policy:
- Odometer statures errors and omissions: It is illegal to roll back a car’s odometer to make it look like it has less mileage. Should such allegations arise, you might face significant challenges.
- Title errors & omissions: If you own a car, then you possess the vehicle’s title. However, once someone pays off the title, you transfer full ownership to them. This coverage can help if someone alleges you lied or mishandled a title.
A Commitment to Tailor-made Policy Services
At Cal-Society Insurance, we have three goals we want to meet when you come to us for insurance:
- Speed: With quick quote turn around, knowledgeable staff and executives who understand the ins and outs of the business and policies that cover your specific needs, you will save time and money by working with you. We will ensure you receive the best of both affordability and security when you get covered.
- Service: We work with insurance companies that will listen to you, because we understand that it is not about us or the insurer. It is about you and your business. We know you don’t want to work with any company where you will be just another number. We want you to come to us for the long-time relationship, respect, advice and counsel.
- Satisfaction: At the end of the day, we want to make sure you have peace of mind knowing that you have the right commercial insurance.
Don’t hesitate to call one of our agents right now at 800.773.1663. We are ready and waiting to help you find the most-appropriate protection for your business.
Cal-Society is a leading provider of insurance for individual, families and businesses in most states including California, Texas, Florida, Pennsylvania, Nevada, Arizona, Utah and Colorado. Our Los Angeles office employs agents licensed throughout the country. We have agents fluent in English, Spanish, Japanese, Armenian and Farsi. Give us a call today 800.773.1663.