Auto Dealership Insurance in Georgia: Coverage for Used & New Car Dealers
Auto Dealership Insurance in Georgia
Operating an auto dealership comes with risks that are very different from those of many other Georgia businesses.
You may have customers test-driving vehicles, employees moving vehicles around the lot, inventory sitting outside overnight, customer vehicles temporarily in your care, dealer plates being used on the road, and potentially hundreds of thousands of dollars in vehicles on your property at any given time.
A standard business insurance policy may not be enough to address all of those exposures.
At Jones Group Insurance Services, we help Georgia auto dealerships evaluate insurance options designed specifically for the automotive industry.
Whether you're opening your first small used-car lot or operating an established dealership with employees and significant inventory, understanding your coverage is an important part of protecting your business.
We serve auto dealerships throughout Marietta, Acworth, Kennesaw, Woodstock, Canton, Smyrna, East Cobb, Cobb County, Paulding County and surrounding communities throughout Georgia.
What Is Auto Dealership Insurance?
Auto dealership insurance isn't necessarily one individual coverage.
Instead, a dealership's insurance program may contain several different types of coverage depending on its operations.
A Georgia auto dealership may need coverage for:
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Garage liability
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Dealers open lot
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Garagekeepers coverage
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Commercial property
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General liability exposures
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Commercial auto
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Workers' compensation
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Business personal property
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Umbrella or excess liability
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Buildings owned or occupied by the dealership
The appropriate combination depends on what your dealership actually does.
For example, a small independent used-car dealer with 10 vehicles may have very different insurance needs from a larger dealership with 100 vehicles, multiple employees, service operations and customer vehicles on the premises.
What Is Garage Liability Insurance for a Georgia Auto Dealer?
Garage liability insurance is one of the most important coverages to discuss when insuring an automobile dealership.
Garage liability coverage is designed for certain liability exposures arising from garage operations.
For example, imagine a dealership employee is moving a vehicle as part of dealership operations and causes an accident that results in bodily injury or property damage.
Depending on the circumstances, policy terms, exclusions and endorsements, the dealership's garage liability coverage may respond to a covered claim.
Because garage policies can contain significant limitations and exclusions, dealership owners should not assume that purchasing "garage liability" automatically covers every exposure associated with their business.
What Is Dealers Open Lot Insurance?
This is one of the biggest areas of confusion for new auto dealers.
Garage liability and dealers open lot coverage are not the same thing.
Dealers open lot coverage is generally intended to protect the dealership's vehicle inventory against covered physical damage losses.
Think about the vehicles sitting on your dealership lot.
Depending upon the policy and causes of loss selected, covered losses could potentially involve events such as:
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Fire
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Hail
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Wind
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Theft
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Vandalism
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Collision or other covered physical damage
Coverage varies considerably by policy and carrier, so the actual policy forms, deductibles, limits and exclusions matter.
Example
Suppose a Georgia used-car dealership has $400,000 worth of vehicle inventory sitting on its lot.
The dealership purchases garage liability insurance but does not purchase dealers open lot coverage.
A severe hailstorm damages numerous vehicles on the lot.
The dealership owner should not assume that the garage liability policy will pay for the physical damage to those inventory vehicles.
That's why we make a point of distinguishing liability coverage from inventory physical damage coverage when discussing dealership insurance.
What Is Garagekeepers Insurance?
Another commonly misunderstood coverage is garagekeepers insurance.
Garagekeepers coverage generally concerns customers' vehicles that are left in the dealership's care, custody or control.
This can become especially important when a dealership also performs:
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Repairs
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Maintenance
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Detailing
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Body work
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Vehicle storage
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Other automotive services
For example, if a customer's vehicle is left overnight for service and suffers covered damage while in the dealership's care, garagekeepers coverage may be relevant depending on the circumstances and policy terms.
Dealers Open Lot = generally your dealership's vehicle inventory
Garagekeepers = generally customers' vehicles in your care, custody or control
Those are two very different exposures.
Does a Used Car Dealership Need Commercial Auto Insurance?
It depends on how the dealership operates and how vehicles are titled, owned and used.
Some dealerships have company-owned vehicles that aren't inventory vehicles. Others have employees who drive vehicles for business purposes.
The dealership may therefore have commercial auto exposures in addition to its garage insurance.
This is another reason it's important to explain the dealership's entire operation to the insurance agent rather than simply requesting "dealer insurance."
What About Test Drives?
Test drives are an obvious exposure for automobile dealerships.
Customers are routinely given temporary control of vehicles owned by the dealership.
Dealership owners should understand how their particular policy handles test drives, who is considered an authorized driver and what procedures the insurance carrier expects the dealership to follow.
Your dealership may want procedures for obtaining and documenting information such as:
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Valid driver's license
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Customer identity
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Permission to drive
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Vehicle being driven
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Date and time of the test drive
Insurance requirements and coverage vary by carrier, so dealerships should follow their specific carrier's underwriting and risk-management requirements.
Dealer Plates and Insurance in Georgia
Georgia automobile dealers may also have insurance considerations associated with dealer plates and vehicles being operated on public roads.
Having dealer plates does not mean every vehicle or every use of a vehicle is automatically covered by an insurance policy.
Who is driving, why the vehicle is being driven, whether the driver is authorized, and whether that use falls within the insured dealership's operations can all matter.
Dealership owners should make sure their insurance agent understands how dealer plates and inventory vehicles will actually be used.
Do Auto Dealerships Need Workers' Compensation Insurance?
If your dealership has employees, workers' compensation is another coverage that should be evaluated.
Employees at dealerships may:
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Move vehicles
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Perform lot duties
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Clean or detail vehicles
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Work in an office
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Perform sales activities
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Drive vehicles
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Perform mechanical or service work
The classification of employees and the nature of their duties can affect workers' compensation coverage and pricing.
Georgia employers should also make sure they understand when workers' compensation coverage is legally required for their particular business.
Does an Auto Dealership Need an Umbrella Policy?
A serious automobile accident can result in a substantial liability claim.
For dealerships with significant assets or higher liability exposures, commercial umbrella or excess liability insurance may be worth considering.
An umbrella or excess policy can potentially provide additional liability limits above certain underlying policies, subject to its own terms, conditions, exclusions and required underlying limits.
The appropriate liability limits should be evaluated based on the size and operations of the dealership rather than simply choosing the lowest available limit.
How Much Does Auto Dealership Insurance Cost in Georgia?
There isn't one standard price for Georgia dealership insurance.
Insurance companies can consider numerous underwriting factors, including:
Number of vehicles: A dealership carrying five vehicles represents a different exposure from one carrying 100.
Value of inventory: The total value of vehicles can significantly affect dealers open lot coverage.
Location: Where the dealership operates can affect property and vehicle exposures.
Driving records: Employees and other authorized drivers can affect eligibility and premiums.
Loss history: Previous insurance claims can affect underwriting.
Dealership operations: Sales-only operations may be rated differently from dealerships offering repair, detailing, body work or other services.
Coverage limits and deductibles: Higher limits, additional coverage and deductible selections can affect premium.
This is why two used-car dealerships located only a few miles apart could receive very different insurance premiums.
What Information Do I Need for a Georgia Auto Dealer Insurance Quote?
Having the information available upfront can make the quoting process much smoother.
We may ask for information such as:
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Legal business name
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DBA
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Dealership address
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Years in business
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Owner information
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Number of employees
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Driver information
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Estimated annual sales
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Number of vehicles
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Average vehicle value
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Maximum vehicle value
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Maximum total inventory
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Types of vehicles sold
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Dealer license information
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Prior insurance information
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Loss history
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Whether repairs or service are performed
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Whether customers' vehicles are kept on the premises
The exact information required will depend on the insurance carrier and the dealership's operations.
Used Car Dealer Insurance in Marietta, GA
Jones Group Insurance Services helps independent auto dealers in Marietta and throughout Cobb County evaluate garage liability and other dealership insurance options.
Whether you're opening a new dealership or reviewing an existing policy, we can help you understand what is—and just as importantly, what is not—included in your insurance quote.
Auto Dealership Insurance in Acworth, GA
If you operate a dealership in Acworth, we can help evaluate coverage for your dealership's specific operations.
This may include garage liability, dealers open lot, garagekeepers and other commercial insurance coverages depending on your business.
Used Car Dealer Insurance in Kennesaw, GA
Dealership owners in Kennesaw can contact Jones Group Insurance Services for assistance reviewing their auto dealership insurance.
We can help identify the exposures associated with your dealership and explore coverage options available through our insurance markets.
Auto Dealer Insurance in Woodstock & Canton, GA
We also serve dealerships throughout Woodstock and Canton, including businesses throughout Cherokee County.
Whether you're starting a small independent dealership or already have an established operation, we can help you evaluate insurance options based on the size and nature of your business.
Auto Dealer Insurance in Smyrna & East Cobb, GA
Jones Group Insurance Services also works with business owners throughout Smyrna and East Cobb.
If you're comparing dealership insurance, don't compare policies based solely on premium.
A lower-priced quote isn't necessarily the better policy if important exposures aren't included.
Pay close attention to the limits, deductibles, exclusions, vehicle inventory coverage and other policy conditions.
Auto Dealership Insurance in Cobb County, GA
Our agency serves businesses throughout Cobb County, including:
Marietta, Acworth, Kennesaw, Smyrna, East Cobb and surrounding communities.
We understand that independent auto dealers may need specialized insurance rather than a standard general liability policy.
Auto Dealership Insurance in Paulding County, GA
We also help dealerships throughout Paulding County and surrounding Georgia communities evaluate their commercial insurance needs.
As your dealership grows, your insurance should be reviewed as well.
Adding inventory, hiring drivers, expanding operations or beginning repair work can create exposures that weren't present when your original policy was purchased.
Why Work With an Independent Insurance Agency?
An independent insurance agency isn't tied exclusively to one insurance company.
That can be particularly valuable for specialized businesses such as auto dealerships because underwriting guidelines can differ substantially among carriers.
At Jones Group Insurance Services, our goal isn't simply to provide a price.
We want business owners to understand what they're purchasing.
If one quote includes garage liability only while another includes garage liability plus dealers open lot, those aren't equivalent quotes—even if the premium difference makes one appear less expensive.
Understanding those differences before a claim occurs is extremely important.
Get an Auto Dealership Insurance Quote in Georgia
If you own or are opening a new or used automobile dealership in Georgia, Jones Group Insurance Services can help you evaluate your insurance options.
We serve businesses throughout:
Marietta | Acworth | Kennesaw | Woodstock | Canton | Smyrna | East Cobb | Cobb County | Paulding County | and surrounding Georgia communities
Whether you need garage liability insurance, dealers open lot coverage, garagekeepers coverage, commercial auto, workers' compensation, commercial property or additional liability protection, we'll help you evaluate coverage based on your dealership's actual operations.
Contact Jones Group Insurance Services Today
Protect the dealership you're working hard to build.
Jones Group Insurance Services
Commercial Insurance for Georgia Businesses
Request an Auto Dealership Insurance Quote Today.