FAQs
What type of insurance do I need for a car dealership?
You will definitely need to have a liability insurance for your dealership. If the car is to be test-driven by you or your potential clients, you will also need garagekeepers policy in case of accidents or crime. However, your first and foremost step in establishing a car dealership is to obtain the right permit and license. To operate legally, most states will require a motor vehicle dealer bond, or dealer open lot bond.
When your dealership is up and running and you add several salespeople and staff onto the payroll…
You will want to have workers compensation, employment practice liability insurance (EPLI) to protect your business from lawsuits resulting from injuries or employment-related issues.
You might also want to consider other coverage such as umbrella/excess liability, crime insurance.
Depending on the characteristics of your dealership, you will want to consider and look into different insurance coverage that will protect you and your business when needed.
What happens if one of my auto vehicle gets into an accident when the client or my employee is test-driving it?
This is when your garagekeepers policy comes into play. For more information on how that works, please call our expert agents at 1(815) 459-3300.
I am not sure what exactly is needed (insurance/bond) for my dealership to operate legally and be protected from the varius risks…
Please feel free to call us at 1(815) 459-3300 for more information. Our agents will be able to provide you with detailed information based on your business’ needs.