Insurance for Car Dealers

Car dealerships can face a variety of risks. At Cross Insurance, we can help you explore your options for competitive insurance coverages at affordable rates. We work with many different insurance carriers, ranging from local companies based out of New England to nationally recognized names.

potential buyer shaking hands with car salesman in a dealership showroom

Insurance Quotes for Car Dealers

If you are looking to get a quote for your dealership, reaching out to us is as simple as filling out this form. If you prefer to call one of our offices to start the quoting process, you can find a list of all of our offices here. From there, a member of our team will connect with you to get more details on the size of your business and the types of insurance plans you are interested in.

Types of Insurance Dealers May Want to Consider

The following list contains some of the common coverages that a car dealership may want to consider.

Dealer’s Insurance

Dealer insurance typically consists of open lot coverage, garage liability, garage keeper’s insurance, and dealer plate insurance.

  • Open Lot Coverage – can help protect a dealer’s vehicle inventory in the event of weather-related incidents, vandalism and theft, and other non-collision damages.
  • Garage Liability Coverage – can help to pay for certain types of injuries or damages to your customers or their property in connection with your auto garage (such as a customer suffering an injury as a result of tripping over a tool in your garage, or an employee negligently getting grease on a customer’s expensive coat)
  • Garage Keepers Insurance – can help to pay for certain types of damage to customers’ vehicles while they are under your care for service or repair (such as vandalism to a customer’s car that is stored on your lot overnight)
  • Dealer Plate Insurance – can help provide coverage for a vehicle, the driver and occupants, and certain third parties during a test drive.

General Liability

General liability insurance helps to provide your dealership with protection for certain third-party liability claims related to your operations, such as bodily injury or property damage caused by a dangerous condition on the premises or the negligence of one of your employees. Some general liability policies also include coverage for certain types of personal and advertising injuries, such as claims for defamation or copyright infringement.

Commercial Auto for Car Dealers

Regardless of if an employee is just running an errand or simply moving a vehicle across your lot, as a car dealer you are constantly operating vehicles in connection with your business, which makes having commercial auto coverage one of the more important coverages to consider. Cross Insurance can help provide coverage for many types of vehicles used for commercial purposes.

Commercial Property

Many dealerships own the land they operate on, but whether you own or lease the space, commercial property insurance can be a worthwhile investment. The following are some of the assets commercial property can help to insure:

  • Your building and other structures on property
  • Your dealership’s equipment, such as lifts, tools, supplies, furniture, and other specialized equipment
  • Outdoor signage, banners, and other materials
  • Landscaping such as entryways and parking

vehicles on lifts in dealership repair shop

Inland Marine

Inland Marine can provide financial protection for your business’s vehicles, equipment, products, parts, and even some materials that are transported. Your dealerships inventory is constantly being shipped to and from your location, which makes having an inland marine policy a strongly recommended policy for car dealers.

Workers Comp for Car Dealers

Car dealerships consist of many moving parts – from salespeople to lot manager and other staff members, running a dealership takes numerous individuals. Whether you’re a small used car lot or a large dealership with hundreds of workers, having workers’ comp to help protect your employees. Workers’ Comp can help to cover medical bills for employees who are injured or become ill because of work related events. It can also help cover a portion of lost wages. Workers’ compensation is legally required in most states.

Cyber Insurance

Cyber liability insurance can help to provide your dealership with protection from data recovery costs, reputational damage, and income loss if your customers or staffs electronic data and records are jeopardized as part of a data breach. Many dealers rely heavily on technology to store both personal and confidential information relating to customers, staff, and even inventory, making the possibility of data breach a dangerous threat. A cyber breach can do more than just damage a computer system or steal data – it can also result in fines and legal fees.

close up of line of cars on dealership lot

How Much Could Insurance Cost?

What a business owner might pay per year to cover their business depends on a variety of factors. When you reach out to us, we can gather more information on the types of policies and coverages you are looking for, so we can provide you with personalized quotes. At Cross Insurance we know each business is different, although there are some common factors that can be used to help calculate insurance costs.

  • What types and amounts of coverage you select
  • The cost of the property you would like to insure
  • Where your dealership is located?
  • Deductible: What will be the amount you are responsible for paying towards a loss before your insurance coverage begins paying towards a claim
  • Employee Numbers: How many employees do you have?
  • Claims History: How extensive is your claims history?

These, and other factors, will determine what you will pay for insurance premiums. To get a picture of what it could cost to insure your business, you can request a quote from us, or if you prefer to call someone to start the quoting process, you can find a list of phone numbers to all of our offices here.



This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.


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