Auto dealerships require extensive capital investments, and the investments that are made should be protected whenever possible. One way that Massachusetts dealerships can protect their assets and themselves is by purchasing new and used auto dealer insurance.
New and used auto dealership insurance provides commercial insurance coverages tailored to dealers’ needs. Policies typically provide extensive property and liability protections.
What Massachusetts businesses should have auto dealership insurance?
Massachusetts auto dealerships generally need auto dealership insurance if they sell vehicles for public roads. New car dealers, used car dealers, independent dealers and RV dealers may want coverage.
Dealerships that sell vehicles that don’t go on public roads normally will find that another commercial insurance policy is more suitable for their situation. Different insurance is available for dealers that sell ATVs, four-wheelers, snowmobiles, golf carts and similar equipment.
An insurance agent who’s familiar with auto dealership insurance can help dealers determine whether this or another policy option is right for them.
What coverages can dealers get through auto dealership insurance?
Most of the different coverages that auto dealership insurance makes available are either liability protections or property protections. Liability protections primarily guard against lawsuits that other parties might file against a dealership. Property protections primarily guard against loss of physical assets.
Some liability protections that are frequently available through these policies include:
Auto Dealership Physical Damage Coverage, which could cover vehicles that are part of a dealer’s inventory
Equipment Breakdown Coverage, which could cover service and other equipment against malfunctions
Business Income Coverage, which could cover revenue losses that follow after a natural disaster
Commercial umbrella coverage, employment practices liability coverage, and still other protections are also readily available.
What protections are afforded by dealership plate coverage?
Dealership plate coverage typically extends to inventory vehicles that have temporary license plates. Should these vehicles be involved in an accident, the coverage might pay covered losses and liabilities that are associated with the accident.
Before purchasing any policy that has dealership plate coverage, dealers should work closely with a knowledgeable insurance agent to make sure that the chosen policy’s coverage does indeed provide the protections the dealer needs.
Do auto dealership insurance policies come with surety bonds?
Dealerships in Massachusetts are generally required by state law to maintain minimum surety bonds. Although insurance companies commonly offer these bonds, the bonds themselves are most often purchased outside of an actual insurance policy. They can be bought by themselves.
An insurance agent who’s familiar with auto dealer policies should be able to also assist with surety bonds.
Where can dealerships request quotes for new & used auto dealer insurance?
If you need customized quotes for your auto dealership, contact the independent insurance agents at Roger Keith & Sons Insurance. Our Massachusetts agents can help you request customized new and used auto dealer insurance quotes from several companies. We’ll then work with you to determine which quote provides the best coverage for your dealership.
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.