Car Dealership Insurance with the Best Coverage for Auto Dealers
Car Dealership Insurance protects auto dealers from financial risks, including vehicle damage, customer injuries, and legal claims. With tailored coverage options, dealerships can safeguard their business, employees, and inventory while ensuring compliance with industry regulations.
Choose the right coverage from trusted insurance providers.
Why Do Auto Car Dealers Need Insurance?
Managing an inventory of vehicles is expensive, making business insurance essential for car dealers. Strong risk management protects against damage from fires, storms, and costly legal costs if a customer slips on the showroom floor or gets into an accident during a test drive.
With the right auto car dealership insurance, dealerships can safeguard their business from unexpected losses.
What Types of Insurance Do Auto Dealers Need?
These insurance policies provide coverage for the most common risks faced by a dealership.
Business owner’s policy
A Business Owner’s Policy (BOP) is a cost-effective way for auto dealerships to buy essential coverage, including general liability, commercial property insurance, and business interruption protection for unexpected incidents.
Under this plan
Customer injuries
Property & asset damage
Income loss support
Commercial umbrella insurance
A policy boosts limits on general liability insurance, commercial auto, and employer coverage to protect against expensive lawsuits, multi-vehicle accidents, customer injury, and employee claims.
Under this plan
Extra protection
High-cost lawsuits
Serious accidents
Commercial auto insurance
This policy covers damage to vehicles—whether owned, new, or used. It pays for injuries, theft, and vandalism, keeping your dealership in line with state laws.
Under this plan
Physical damage protection
Liability for accidents
Coverage for theft and vandalism
Cyber insurance
Cyber liability insurance helps car dealerships recover from data breaches and cyberattacks. It’s recommended for any business that stores customer information, including credit cards and personal data.
Under this plan
Fraud monitoring services
Customer notifications
Cyber threat protection
General liability insurance
A general liability policy helps protect your car dealership by covering basic risks, like a customer who slips and gets hurt on your property. Adding garage liability insurance gives extra protection for consigned vehicles and dealership activities.
Under this plan
Customer car damage
Visitor injuries
Libel & slander legal issues
Worker’s compensation insurance
Workers’ comp is required for auto dealerships to protect employees from work injuries. It covers medical expenses, disability benefits, and lawsuits, ensuring compliance with state laws.
Under this plan
Medical costs for work injuries
Disability benefits for employees
Protection from lawsuits
How Do I Get Car Dealer Insurance?
Getting insurance for a new or used car dealership is easy when you follow three steps. First, gather basic facts like business revenue, number of employees, and policy needs. Next, submit an application online to a licensed insurance company or top-rated U.S.
Provider like Eagle Nation to compare quotes for the best coverage. Finally, choose policies, pay, and download your certificate. Some automobile dealers may also need surety bonds to meet legal requirements. If you prefer expert help, you can independently hire agents to guide you.
Helping Auto Car Dealerships Stay Protected
We help dealerships minimize risks by offering tailored coverage to safeguard employees and protect inventory in showrooms and service areas. With the right Car Dealership Insurance plan, you can reduce the chance of loss or damage, ensuring smooth operations and financial security.
Customized Coverage and Risk Management for Auto Car Dealership Insurance
e understand that running a dealership means handling a lot from customer test drives to scheduled maintenance visits. That’s why our insurance program is designed to reflect the unique nature of your business.
Our agents work with you to create a plan that makes sense, addressing critical issues like title errors and omissions. With experienced Safety Services staff, we help identify risks, improve processes, and protect your bottom line by reducing the chance of claims before they happen.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
Frequently asked questions about car dealer business insurance
Dealer’s insurance is a specialized policy designed to protect business owners from various risks that come with owning and operating a car dealership. These policies provide coverage for both new and used vehicle inventory, offering comprehensive protection against physical damage caused by fires, hail, vandalism, theft, and other non-collision damages. Since dealerships face unique exposures, this type of insurance also includes general liability, which extends to the lot, service center, and other operations where a customer could get injured—like slipping on an oily spot in the service area.
Key Insurance Policies for Auto Dealers
A dealer’s open lot (DOL) policy is crucial for dealers since it incorporates protection for vehicles stored on an open lot. Additionally, businesses that store, service, or keep vehicles for customers should consider garage keepers insurance, which covers accidental damage to vehicles under their care, custody, and control. Another essential element is plate insurance, which provides coverage when a vehicle is out for a test drive. This ensures that the driver, occupants, and third parties are protected under various conditions while the car is being demonstrated.
A dealership needs more than just DOL coverage to stay fully protected. Specialized auto insurance products help cover various risks, including errors and omissions (E&O) insurance, which pays legal costs if a customer files a lawsuit due to mistakes, oversights, or an error in a vehicle history report, loan document, or any misrepresented detail. Surety bonds are also critical, as state laws require them to obtain a dealer license, ensuring protection against fraudulent or negligent activities.
Business Interruption and Employee Protection
A business interruption policy (BOP) is another key coverage, as it includes costs if a dealership is forced to close temporarily due to a fire, storm, or another property claim. Additionally, employment practices liability insurance (EPLI) safeguards against employment-related lawsuits such as harassment, wrongful termination, and discrimination. Even a small dealership with only a few employees can benefit from this policy, as work-related issues can arise unexpectedly.
The cost of insurance for a small, used car dealership or a larger business varies based on several factors. Key elements that affect premiums include the type of property, the value of equipment, and the expected income. The amount of coverage purchased, policy limits, and deductibles also influence overall costs.
A business owner's policy (BOP) is a cost-effective way for auto dealerships to buy general liability coverage and commercial property insurance together in one plan. This protects against customer claims and property damage, making it a preferred choice.
General liability insurance is essential for dealers and automotive businesses to stay protected. The costs vary, but the median premium is typically less than $50 per month or around $576 per year. This policy offers protection against third-party claims, covering bodily injuries, property damage, and even advertising injuries. For auto services, having the right coverage ensures financial security and compliance with industry standards.
In many states, you may not be legally required to have full insurance coverage when purchasing a car, but finance lenders often require it to protect their investments. Whether the vehicle is gently used or new, lenders insist on full coverage regardless of its condition to minimize financial risks.
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Eagle Nation made finding car dealership insurance effortless. I got multiple quotes quickly and secured comprehensive coverage within a day. Great service and competitive rates!