Focused on insurance solutions for used car dealerships

Protecting your lot, inventory, and business from the unique risks of the used car industry. The team at Zeigler Insurance specializes in comprehensive coverage solutions designed specifically for used car dealerships - so you can focus on sales while we protect your investment.

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Used Car Dealership Insurance Is Critical Business

Running a used car dealership comes with significant financial exposure. From high-value inventory sitting on your lot to customer test drives and liability risks, your business faces unique challenges that standard business insurance simply doesn't cover.

Whether you're operating a small independent lot or a multi-location dealership, you need specialized garage insurance that understands your business. Did you know that 60% of small dealerships operate without adequate garage liability coverage, leaving them vulnerable to devastating financial losses from accidents during test drives, customers injured on premises, or damage to vehicles in your care?

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What Used Car Dealership Insurance Covers

These are the essential coverage areas that protect your dealership. Not sure what you need? Let our garage insurance specialists build a custom package for your operation.

Garage Liability Insurance

Garage liability insurance is the foundation of dealership protection. This coverage protects your business from claims arising from your operations, including bodily injury and property damage caused by your business activities. Whether a customer slips on your lot, is injured during a test drive, or a vehicle damages property while in your care, custody, or control, garage liability provides essential protection.

Unlike general liability, garage liability is specifically designed for the auto sales and service industry, covering the unique risks you face daily.

Dealer's Open Lot (Garagekeepers) Insurance

Dealer's open lot insurance, also known as garagekeepers coverage, protects the vehicles in your inventory and customer cars on your premises from physical damage. This includes protection against fire, theft, vandalism, weather damage, and collision.

This coverage is crucial because traditional property insurance doesn't cover vehicles held for sale. Whether you have 10 cars or 200 on your lot, this protection ensures that your inventory investment is secure against unexpected losses.

Dealer's Plate (On-Hook) Coverage

Dealer's plate coverage, also called on-hook coverage, provides liability and physical damage protection for vehicles while they're being operated by you, your employees, or customers during test drives. This is one of your highest-risk exposures.

Standard auto insurance won't cover business use of vehicles in your inventory. This coverage protects you from liability claims and repairs when test drivers have accidents, employees are transporting vehicles, or you're conducting business operations with inventory vehicles.

General Liability

Standard general liability insurance covers third-party bodily injury and property damage claims that occur on your premises but aren't directly related to vehicle operations. This includes customers slipping in your office, injuries in your waiting area, or property damage from non-vehicle business operations.

While garage liability covers auto-related operations, general liability fills the gaps, providing comprehensive protection for your dealership premises and general business activities.

Property & Business Personal Property

Property insurance protects your building (if you own it), office equipment, computers, furniture, signage, tools, and other business property. This coverage responds to losses from fire, theft, vandalism, wind, water damage, and other covered perils.

Your dealership likely has significant investment in your physical location, office equipment, and tools. This coverage ensures you can rebuild and replace after a loss without devastating your business financially.

Business Income & Extra Expense

Business income insurance, also called business interruption coverage, replaces lost income and covers ongoing expenses if your dealership must close temporarily due to a covered loss like fire or severe weather damage.

If your lot is shut down for repairs, you still have to pay rent, utilities, and employees. This coverage keeps money flowing while you're unable to operate, ensuring you can reopen without financial ruin.

Used Car Dealer Insurance – Quick Quote

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Won't My Current Business Insurance Cover My Dealership?

Standard business insurance policies are not designed for the auto dealership industry. General liability insurance covers basic premises liability but excludes the unique risks you face daily - customer test drives, vehicles in your care, and dealer plate operations.

Without specialized garage insurance, you're exposed to significant gaps in coverage:

  • Customer injuries during test drives are typically excluded from general liability
  • Damage to vehicles in your inventory isn't covered by property insurance
  • Liability for vehicles operated under dealer plates requires specialized coverage
  • Garagekeepers legal liability for customer vehicles isn't included in standard policies

Don't learn about coverage gaps after a major claim. Let Zeigler Insurance build comprehensive protection designed specifically for used car dealerships.

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