New Car Dealer Insurance

Most new car dealers think that purchasing insurance is not necessary because the cars are new. What could go wrong? A lot, even for new car dealers. And when something goes wrong with the new car your customer purchased, make sure that you have insurance, to protect your business from the risks. Otherwise, you are responsible for all expenses out of pocket.

New car dealers face the same risks as all other businesses. Below are some examples:

• The car your customer bought is faulty, causing an accident due to the defect. While the manufacturer is responsible for the loss, you are responsible for selling the product to the customer.
• Your employee is hit by a car while driving outside of the showroom. As the employer, you are responsible for medical expenses, rehabilitation, and lost wages for the employee.
• Your dealership is robbed. Money is stolen and cars are vandalized. You are responsible for all losses.

The cost of insurance for car dealers will depend on several factors. Most of the time, insurance companies will determine the cost based on the size of your business, the number of employees you have and the coverage required. To know what is the cost of your insurance policy, apply online to get a free quote or talk directly to our insurance experts.