New & Used Auto Dealer Insurance in Massachusetts

What is New & Used Auto Dealer Insurance?

Running an auto dealership requires a substantial investment, and that investment is exposed to a variety of potential risks. Auto dealers face both substantial property risks and substantial liability risks. New & used auto dealer insurance offers dealerships in Massachusetts financial protection from many of the risks they face.

New & used auto dealer insurance is a specialized form of commercial insurance that’s intended for automotive dealerships. Because dealerships often face multiple risks, these policies usually come as package policies that bundle at least several coverages together.

What Businesses in Massachusetts Need Auto Dealer Insurance?

The vast majority of auto dealerships in Massachusetts ought to have auto dealer insurance in place. This generally includes both new car dealerships and used car dealerships regardless of how many vehicles or what type of vehicles they sell. Even RV dealerships or motorcycle dealerships can likely benefit from an auto dealer insurance policy.

What Coverages Are Included in Auto Dealer Insurance?

Most of the coverages included within an auto dealer insurance policy are either property-related coverages or liability-related coverages. The former protections normally safeguard assets that a business has in its possession, while the latter usually guard against liability claims and lawsuits.

Some of the property coverages that auto dealers might need or want include:

Commercial Property Coverage, which might protect owned buildings and equipment against damage

Auto Dealer Physical Damage Coverage, which might protect vehicles in inventory against damage

Equipment Breakdown Coverage, which might protect essential equipment against unexpected breakage

Business Income Coverage, which might provide supplemental revenue if a dealership must temporarily close after a covered disaster

There are many liability coverages that auto dealerships might need or want:

General Liability Coverage, which might protect against common accidents, defamation lawsuits and false advertising suits

Auto Liability Coverage, which might protect against auto accidents involving company vehicles or vehicles in inventory

Garagekeepers Liability Coverage, which might protect customers’ vehicles while they’re on a dealers lot

Auto Errors and Omissions Coverage, which might protect against mistakes salespeople, finance people or technicians make when giving advice

Product Liability Coverage, which might protect against injuries and damage caused by products

False Pretenses Coverage, which might protect against situations where a dealership releases a vehicle improperly under false pretenses

An insurance agent who’s familiar with auto dealer insurance policies can help dealerships sort through all of the coverage options and select the protections that are right for them.

Do Auto Dealer Insurance Policies Come With Bonds?

Auto dealerships are generally required to post bond in order to legally operate within Massachusetts. Bonds normally aren’t included in an auto dealer insurance policy itself, but many insurance companies also offer bonds and insurance agents are frequently familiar with the required surety bonds. An insurance agent who can help with policy selection can also likely assist a dealership with any surety bonds that it needs.

How Much Do Auto Dealer Insurance Policies Cost?

Auto dealer insurance policies’ premiums are based on many different factors, and they vary from policy to policy. An independent insurance agent can help dealerships compare policies from several insurance companies to see how much a policy that meets specific needs will be.

In most cases, policies tend to be affordable even though their premiums vary. The cost of carrying insurance almost certainly is less than what a major claim would be if something happened.