INSURANCE COVERAGE FOR USED AUTO DEALERS
Used Car Dealership Insurance & Garage Liability Policies
Used Auto Dealerships have many difficult and complicated insurance needs. Making sure the needed coverage is obtained often comes down to the diligence of the business leaders confined to budgetary concerns. It shouldn’t be that way. It is important to seek coverage from an agent that understands the unique mix of insurance needs of the used auto dealers business, but also understand the coverage that is available to handle the risk. I have almost four decades of experience providing insurance coverage for used auto dealers. My father owned and operated his own gas station and auto repair garage for fifty years where I worked. A person gets a lot of experience working on the other side, so to speak, and is a reason I am a great resource for used auto dealer insurance and risk advice.
Used Auto Dealers have both State and Federal laws that govern their business activities with many of the requirements being enforced by State licensing boards and law enforcement. Keeping up with the changes is almost a full time job. Many dealers have adopted “buy here – pay here” (BHPH) lot financed sales models and this may place the business also in the banking and lending business. This further complicates obtaining adequate protection for potential legal issues surround FCRA and “truth in lending” (TILA) statutes, lemon laws, usury, UCC, and other laws and (usually) these exposures are poorly addressed in standard and readily available used auto dealers insurance programs. Frankly, the BHPH dealership is in the lending business when the dealership lends its own money or credit line to make an auto sale. That means the used auto dealers are in the banking and auto sales businesses with regulation from agencies of government interested in each area of concern. That can be daunting and difficult to manage and manuever for any one insurance policy.
Our policies and coverage are designed for the small to medium retail used auto dealers selling private passenger vehicles, trucks and trailers. In an ideal world we prefer to package liability, property, and inventory coverage needs for the used auto dealers into our special insurance package. Many of our used auto dealers buy liability and protection for the inventory but do not own the buildings. A coverage outline of our capabilities is shown below. We utilize both standard admitted and non-admitted carriers and have a half dozen carriers to choose from.
Typical coverage options are shown below but we may have other options available depending upon the carrier.
Property Coverage
- Buildings
- Business Personal Property
- Inland Marine and Special Property
- Ordinance and Law
- Accounts Receivable
- Newly Acquired Locations
- Business Income and Extra Expense
- Dealers Open Lot (Inventory)
Garage Liability
- Auto dealer garage operations
- Premises Liability
- Auto Liability
- Broadform Products
- Fire Legal Liability
- Garagekeepers Liability – Customer Auto
- Personal and Advertising Injury
- Products and Completed Operations
- Cyber Liability
- Ohio Stop Gap Liability
- Employment Practices Liability (EPLI)
- False Pretenses
- Title Errors and Omissions
- Truth in Lending
- Federal Odometer
Umbrella Liability
- Limits up to $5 Million typically available
- Limits up to $10 Million may be available under some circumstances
You may contact Terry McCarthy and obtain direct information from his (almost) four decades of insurance experience by calling (513) 779-7920 Monday – Friday most weeks. Other times and days are available by advance appointment. The agency maintains office hours from 9-5 and is conveniently located at 8114 Paul Manors Drive in West Chester, OH 45069. We serve all of Ohio with the used auto dealers insurance coverage programs.
