The Right Insurance for Your Dealership

Any business owner selling fragile goods knows how rough the buying public can be. There was a time when signs stating “You broke it, you bought it,” lined store shelves, but most businesses now just invest in insurance for their inventory. While it’s clear that insurance is necessary for a china shop, you should also invest in special insurance if you are planning on selling cars.

Ignore the Warning Signs

You can post signs stating that people will be held responsible for damage they cause, but the signs won’t prevent accidents from happening. Also, posting the sign does nothing to ensure that the responsible party has the means to pay for the damage. Even if they have the funds and assets required to cover the damage, you will probably still have to go through court to recoup your expenses. It’s more affordable and less stressful to cover yourself with motor trade insurance from the moment you open for business.

Did I do That?

You look at your inventory and see a major investment of resources and future income. Customers and even employees look at your inventory and see something that belongs to someone else. They aren’t going to handle it gently, and most of them won’t care if they accidentally scratch it. If they should damage it, they are likely to decide that they didn’t cause the damage, ignore it, and walk away without saying a word. Insurance will cover you for the little scratches, nicks, and dings that mysteriously appear.

It was Just a Tap

Accidents can happen, and even minor damage will have to be repaired. An employee can get into a fender bender while test driving a car or a customer may accidentally hit a car in the parking lot. Someone who gets out of a car and slams the door open could hit one of your vehicles and leave a dent. Even though you may not have anything to do with the problem, you could still wind up holding the bill if your inventory or a customer’s car is damaged. The right insurance will not only cover the cars you own, it will also cover your customers’ cars and any other private vehicles that are damaged in the accident.

Background Check, Please

If you are running a dealership, then test drives are simply part of doing business. Customers need to take a car for a spin before making a final decision, and that means turning over the keys and letting them get behind the wheel. You could ask for a background check and copy of their driving record, but that would be offensive to most customers. Instead, you have to take your chances and trust that they aren’t going to wreck the car while driving it around town. If they do get into an accident, you will be covered by your motor trade insurance.

The cars on your auto lot aren’t as safe as you might think. From careless customers to angry employees, there are far too many things that can go wrong and leave you facing damage. The right insurance plan will cover you for damage and protect your interests. Before you open the doors of your dealership, invest in motor trade insurance to protect you from mayhem.

Garrett Stevens blogs about the importance of cover for motor traders. If you own a car dealership, you should consider getting dealership insurance to protect your assets.


  1. Mary Ann Regulado says:

    I Like it because having insurance can also help you in the case of an accident. Accidents happen everyday and it could be you next. If you have an accident and you are at fault, having insurance will keep you from having to pay yearly cost if someone is hurt, If you are in an accident and you are the one who gets hurt or has to have repairs done to your car and the other person does not have insurance and you also do not carry insurance, you may be faced with paying medical bills and car repair bills for years!

  2. Tina Kratz says:

    Hello- we were test driving a car with the salesman and the salesman was driving. He had a fender bender in the parking lot with the 2012 new suv we are interested in buying. The dealership will repair this vehicle. If we were to buy this vehicle does it decrease the value of the vehicle?

  3. Step By Step Advisor says:

    Yes it would. Use the fender bender opportunity to negotiate the price down SIGNIFICANTLY.

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