Used Auto Dealer Insurance in Texas
When analyzing the insurance needs of an auto dealership in Texas, one of the problems is determining what needs to be covered from auto dealer garage Liability
and / or auto Physical Damage Coverage
, often referred to as Dealer's Open Lot Insurance
(DOL). DOL (also known as Inventory Insurance, Floor Plan Insurance, Comp and Collision or Dealer's Physical Damage Insurance) .Building and office content insurance is also an extra option to add to the policy.
Dealer open Lot insurance
can protect the respective interest of the Dealers, and Lenders. It is physical damage coverage that pays for damage to the Dealer's inventory and if needed, other company vehicles. Coverage can be provided both on the lot and while driven. In addition to the inventory, service vehicles and customer loaners can be included. This Coverage should not be confused with Garage Liability or Garagekeepers Legal Liability.
Often a Producer, inexperienced in this area, will look at the Declarations Pages of the expiring policy for guidance on what coverage and limits are needed. This is not a reliable means. Many times the dealership will have a separate policy or part of their DOL Coverage will be provided by the Floor Plan Finance Company such as GMAC, Ford Motor Credit, Chrysler Credit, Nissan Motor Credit or in some cases a Bank or Finance Company. The Floor Planner may provide only Comprehensive Coverage while the Collision and sometime the False Pretense Coverage is provided by the independent insurance company.
The Declarations Pages of some of competitors are particularly misleading. They will display a limit but there is no indication of which vehicles are actually covered. The Producer must research all areas to determine what coverage he must provide. Because of the Catastrophe issues in many areas of the Country, this research should start early in the application process as we need time to get the most competitive quote possible for this part of the Dealerships Coverage.
Some other considerations when buying an open lot insurance policy are:
- Dealership must be engaged in the sale of new and/or used automobiles, pickups, trucks.
- Personal use of Demos and Company Autos must be appropriately controlled.
Coverage is available in all States and provides for most losses including, fire, theft, vandalism, flood, windstorm, hail, collision and spot delivery.
Coverage is written in solid, stable, and financially sound "B" rated insurance companies or higher. Other dealership coverage's available in most States.
In working with auto dealer insurance over the years, we have become well acquainted with the insurance, employee benefits, and risk management needs of the automotive industry. We also understand the unique exposures auto dealerships face, including these leading concerns:
- Customer test-drives
- Employment practices liability
- Vehicle protection and security
- Employee driver controls
We are proficient in both structuring auto dealer insurance programs and negotiating on your behalf. Our knowledge allows us to successfully develop customized and comprehensive coverages at the most competitive prices in the industry. We have been providing auto dealer liability insurance & open lot insurance in Texas since 1988.