Used Auto Dealer Insurance in Texas
How Much Does an Auto Dealer Garage Insurance in Texas cost?
Auto Dealer Insurance with a basic liability limit of $100,000 can start from a low rate of $1190/year and up depend on the size of the dealership and number of employees. Garage Liability insurance is an important coverage that an auto dealership needs to protect their business from any law suits in case of a claim against their operation.
Why Garage Liability & Dealer’s Open Lot (DOL) are Extremely Important?
For the person who owns a car dealership or anyone who is operating an automotive repair shop, we recommend a garage liability and dealer’s open lot (DOL) Insurance policy. We recognize the importance of having the proper level of liability and property insurance protection for your dealership. We represent carriers with whom we have direct appointments and we maintain relationships with other Garage Liability Insurance carriers so that we can often provide multiple sources to quote this important coverage.
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 Dealer Open Lot, or 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.
Considerations when buying a liability or 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.
- Number of employees, staff, mechanics, salesmen on the policy to be covered.
- Average number of cars on the lot for the sale, inventory.
- Average price per vehicle that are listed for sale.
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 coverage at the most competitive prices in the industry. We have been providing auto dealer liability insurance & open lot insurance in Texas since 1988.
List of What Dealer Open Lot (DOL) Floor Plan Covers?
- Comprehensive: Provides coverage to a covered vehicle or equipment attached from any cause of loss except collision with another object or overturn.
- Specified Causes: Provides coverage to a covered vehicle or its equipment caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or the sinking, burning or derailment of any conveyance transporting the covered vehicles.
- Fire and Theft: Grants coverage to a covered vehicle or its equipment caused by fire, lightning, explosion or theft.
- Collision: loss or damage to a covered auto caused by collision with another object
- False Pretense: Optional Coverage, Provides coverage to a covered vehicle caused by someone who causes the dealer to voluntarily part with a covered vehicle by trickery, scheming, or under false pretenses. For example, if you allow an unaccompanied test drive, and the driver does not return back to the lot, this is considered a false pretense claim. In most cases, policies exclude false pretense and you have to buy back the coverage.