Auto Dealership Insurance in Smyrna, GA: Garage Liability & Dealer Insurance
Operating an auto dealership comes with insurance risks that are very different from those of many other businesses. You may have customers test-driving vehicles, employees moving inventory, vehicles stored on your lot, customers visiting your premises, and dealership vehicles traveling on public roads.
That's why having the right Auto Dealership Insurance in Smyrna, GA is so important.
At Jones Group Insurance Services, we help used car dealers, independent auto dealers, motorcycle and powersports dealers, and other automotive businesses throughout Smyrna, Cobb County, and Georgia explore insurance coverage designed for their operations.
Whether you're opening a new dealership, renewing an existing dealer policy, adding vehicles to your inventory, or reviewing your current Garage Liability coverage, we're here to help.
What Insurance Does an Auto Dealership Need?
There isn't one insurance policy that automatically covers every exposure at a dealership.
Depending on your operations, your insurance program may include:
Garage Liability Insurance
Dealer's Open Lot / Dealers Physical Damage
Garagekeepers Insurance
General Liability
Workers' Compensation
Commercial Property Insurance
Commercial Umbrella Insurance
Business Auto Coverage
Cyber Liability
Employment Practices Liability
The coverage you need depends on what your dealership actually does.
For example, a dealership that only sells vehicles may have different exposures from a business that also performs repairs, detailing, customization, towing, or other automotive services.
Garage Liability Insurance for Smyrna Auto Dealers
Garage Liability Insurance is one of the most important coverages for many automobile dealerships.
It is designed for certain liability exposures associated with garage and dealership operations.
Depending on the policy, Garage Liability may address certain claims involving bodily injury or property damage resulting from covered dealership operations.
This can be particularly important when you have:
Customers visiting the dealership
Employees operating vehicles
Vehicles being demonstrated or test-driven
Dealership-owned vehicles being driven on public roads
Employees moving inventory between locations
Automotive operations conducted at the dealership
The exact coverage varies by carrier and policy form, so limits, exclusions, drivers, vehicle use, and dealership operations should be reviewed carefully.
Dealer Plates & Test-Drive Exposure
Test drives are a normal part of selling vehicles, but they also create an insurance exposure.
A potential customer may need to drive the vehicle before deciding whether to purchase it. Employees may also drive inventory for demonstrations, fueling, maintenance, inspections, or moving vehicles.
Your insurance carrier needs an accurate understanding of who is driving dealership vehicles and how those vehicles are being used.
Dealer plates themselves should not be viewed as a substitute for appropriate insurance coverage.
What Is Dealer's Open Lot Insurance?
Your liability policy and your coverage for physical damage to vehicle inventory aren't necessarily the same thing.
Dealer's Open Lot, sometimes referred to as Dealers Physical Damage, can provide physical damage protection for covered vehicles held for sale, subject to the policy's terms, limits, deductibles, and exclusions.
This is an important distinction.
Your dealership may have Garage Liability coverage but still need separate protection for damage to its inventory.
Depending on the policy, covered causes of loss may include certain events such as:
Fire • Theft • Vandalism • Wind • Hail • Collision or Other Covered Physical Damage
Coverage varies substantially between policies.
If you have $200,000, $500,000, or more of vehicle inventory sitting on your lot, don't automatically assume the vehicles are insured for physical damage simply because you have Garage Liability Insurance.
Garage Liability vs. Garagekeepers Insurance
These two coverages are frequently confused.
Garage Liability generally addresses certain liability exposures arising from your dealership or automotive business operations.
Garagekeepers Insurance is designed to address certain physical damage exposures involving customers' vehicles that are in your care, custody, or control.
For example, Garagekeepers coverage may become especially relevant if your business:
Repairs customer vehicles
Services vehicles
Details customer vehicles
Stores customer vehicles
Performs body work
Takes custody of vehicles belonging to others
A dealership that only sells its own inventory may have different Garagekeepers needs than a dealership that also operates a repair or service department.
Used Car Dealer Insurance in Smyrna, GA
Independent used car dealerships can have very different insurance needs depending on their size and business model.
When obtaining Used Car Dealer Insurance in Smyrna, the insurance company may want to know:
Number of vehicles sold annually
Average inventory value
Maximum inventory value
Number of dealer plates
Number of employees and drivers
Driver histories
Whether customers test-drive vehicles
Whether vehicles are financed
Whether you perform repairs or service
Whether you operate from more than one location
Providing accurate information is important because these details can affect both eligibility and premium.
Do Auto Dealers Need General Liability Insurance?
Depending on the insurance program, dealership liability exposures may be addressed through a garage-specific policy rather than relying solely on a standard General Liability policy.
That's because automobile dealerships have exposures that ordinary businesses don't.
For example, a retail store usually doesn't allow customers to take merchandise onto a public highway for a test drive.
Auto dealerships do.
That's why it's important to work with an insurance professional who understands garage and auto dealer insurance, rather than assuming a standard business liability policy will address every dealership exposure.
Auto Dealer Insurance for Service & Repair Operations
Does your dealership also repair vehicles?
Tell your insurance agent.
Adding automotive service operations can significantly change your exposure.
This could include:
Mechanical Repairs
Oil Changes
Tire Service
Body Work
Detailing
Vehicle Customization
Accessory Installation
Reconditioning
The insurance carrier needs to know exactly what services are being performed.
A dealership that sells vehicles and performs minor reconditioning may be classified differently from a full-service repair facility.
Workers' Compensation for Auto Dealerships
If you employ salespeople, mechanics, detailers, lot attendants, office employees, or other workers, Workers' Compensation may also be part of your insurance program.
Georgia generally requires employers with three or more employees, including regular part-time employees, to carry Workers' Compensation insurance, subject to applicable requirements and exceptions.
Workers' Compensation can provide benefits for covered work-related injuries and illnesses.
Automotive businesses can have significant employee exposures, particularly when employees work around vehicles, tools, lifts, equipment, and moving inventory.
Commercial Property Insurance for Your Dealership
Your vehicles aren't the only property you may need to protect.
If your dealership owns or leases a building, office, equipment, furniture, signs, computers, or other business property, you may need Commercial Property Insurance.
Your landlord may also require specific insurance coverage under your lease.
Make sure your policy reflects the property your business actually owns and the requirements contained in your lease or other contracts.
Commercial Umbrella Insurance for Auto Dealers
Some dealerships may want or be contractually required to carry liability limits above the underlying policy limits.
A Commercial Umbrella policy may provide additional liability limits over qualifying underlying policies, subject to policy terms and requirements.
This can be especially important when a dealership has significant vehicle activity, multiple employees, higher sales volume, or contractual requirements for higher liability limits.
What Information Do I Need for a Dealer Insurance Quote?
If you're looking for Auto Dealership Insurance in Smyrna, GA, having the following information available can make the quoting process easier:
Legal Business Name
Business Address
Federal EIN
Owner Information
Years in Business
Description of Operations
Estimated Annual Sales
Number of Vehicles Sold Annually
Average & Maximum Inventory Values
Number of Dealer Plates
Number of Employees
Driver Information
Current Insurance Information
Prior Claims or Loss History
Details of Any Repair or Service Operations
The insurance company may request additional information depending on your operations.
Don't Let Your Auto Dealer Insurance Lapse
Maintaining continuous insurance coverage is particularly important for automobile dealerships.
If your policy is approaching renewal, don't wait until the last minute to begin reviewing your options.
Changes such as adding employees, drivers, dealer plates, locations, repair operations, or significantly more inventory should also be discussed with your insurance agent.
Your insurance should reflect what your dealership is actually doing today, not what it was doing several years ago.
Looking for Auto Dealership Insurance in Smyrna, GA?
Jones Group Insurance Services helps automobile dealers explore insurance coverage for their dealership operations.
Whether you're starting a new dealership or reviewing an existing policy, we can help you explore options for:
Garage Liability | Dealer's Open Lot | Garagekeepers | Workers' Compensation | Commercial Property | Commercial Umbrella
We proudly serve Smyrna, Marietta, Atlanta, Austell, Mableton, Powder Springs, Kennesaw, Acworth, Woodstock, Canton, Dallas, and auto dealerships throughout Georgia.
Request Your Auto Dealer Insurance Quote Today
Jones Group Insurance Services
Independent Insurance Agency
Serving Smyrna, Cobb County & Georgia
Auto Dealership Insurance | Garage Liability | Used Car Dealer Insurance | Dealer's Open Lot | Garagekeepers