Car Dealership Business Insurance: Key Coverages You Must Have
- Nate Jones, CPCU, ARM, CLCS, AU
- 3 days ago
- 2 min read
Running a new or used car dealership involves managing high‑value inventory, frequent customer interactions, employee activity, and ongoing test drives. Because the risks are unique, every dealer needs the right car dealership business insurance to stay protected. Understanding the essential coverages helps ensure your operations, vehicles, and employees are safeguarded against unexpected losses.
Below are the key policies every dealership should have in place.
Garage liability is the backbone of dealership insurance. It protects your business from claims involving:
Bodily injury on your premises
Property damage caused by your operations
Dealership owners can review general liability concepts through resources like the Insurance Information Institute, which provides helpful business insurance overviews.
Your inventory is one of your most valuable assets. DOL covers your vehicles against:
Theft
Fire
Vandalism
Weather events such as hail or wind
Dealers with outdoor lots or high‑value vehicles should pay close attention to policy limits to ensure full replacement value.
If you store or service customer vehicles, whether through detail work, reconditioning, mechanical repairs, or warranty work, you need garage keepers. This policy protects vehicles in your care, custody, or control. Coverage types include:
Legal liability
Direct primary
Direct excess
Knowing the differences helps ensure you’re not under insured in the event of a loss.
Most states require workers’ compensation for employees. For dealerships, this can include:
Sales staff
Technicians
Lot attendants
Porters
Because injury risks vary by role, accurate payroll classifications are essential for proper rating.
This covers your building, tools, office equipment, signage, and other business property. Dealerships with service centers should confirm whether equipment breakdown, business income, and tools are included.
Dealerships often use vehicles for parts runs, customer transport, or dealer trades. Business auto provides liability and physical damage coverage for any vehicle used in operations.
Get the Right Car Dealership Insurance Coverage for Your Business
Not all insurance carriers specialise in dealership risks, and pricing can vary based on location, inventory values, services offered, and security measures. Wexford Insurance partners with top-rated companies that understand dealership exposures, helping owners secure the right limits, deductibles, and policy forms tailored to their operations.
👉 Request your car dealership business insurance quote from Wexford Insurance today and ensure your inventory, property, and business are fully protected.
