Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Mar 10, 2019

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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

Important facts to know...

  • Car dealers can save big with group discounts
  • Dealers may be eligible for special savings options
  • Dealers who use auto insurance comparison shopping sites can save even more

Car dealers may have many vehicles at their disposal, but they still need to have their personal cars properly insured.

Dealers have special needs and thus often require specialized insurance policies.

This article will look at the subject of car insurance for dealers and highlight ways in which car salespersons can find significant savings by making use of comparison shopping sites.

Compare today by entering your zip code into our free rate tool above.

Mandatory Car Insurance Coverage

The next group of car insurance policy items is generally mandated by law. Even though these coverage items are a must, insurance shoppers can still save surprising amounts of money by taking the time to compare the virtues of multiple companies.

Savvy shoppers can adjust their mandatory coverages to find the best combination of liability limits for their personal circumstances.

  • Personal Injury Protection (PIP) – This coverage item pays for any medical bills resulting from an accident that involves the passengers and driver of the insured vehicle. With medical costs rising higher all the time, PIP can be well worth every penny.
  • Bodily injury liability – This insurance item is the opposite of PIP and pays for the medical bills of other motorists who are injured in an accident with the policyholder. Not only does this coverage item cover medical costs, it can also serve to prevent at-fault drivers from facing liability charges in a civil court of law.
  • Property damage liability – This auto insurance coverage item pays for any damages to property that are a result of a collision with the insured vehicle. This could include damage to the other party’s vehicle, public structures like houses, or community property such as telephone poles.

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Optional Coverages

These car insurance coverage items are generally optional in most places. That said, careful insurance shoppers will try to make a point of checking out their local insurance regulations to make sure that any uncertainties concerning insurance coverage are clarified.

  • Collision coverage – This insurance policy item protects the vehicle of the policyholder against damages incurred during a collision with another car. Since even a scratch can sometimes cost hundreds of dollars to repair, having adequate amounts of collision coverage can go a long way.
  • Comprehensive coverage – This type of insurance coverage swings into action when unforeseen events take their toll on the insured vehicle. Events that usually qualify for payment can include floods, vandalism, theft, hail, fire, and more. Dealers who are driving newer vehicles can be well served by having this policy option handy.
  • Glass coverage – This insurance policy item pays for the replacement and servicing of any cracked or otherwise damaged windows in the insured vehicle. Windshields and other vehicle windows are becoming more technologically sophisticated all the time, and more expensive as well. Having glass coverage in place helps to assure that such costs are kept to a minimum.

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Ways to Save on Auto Insurance for Dealers

Even though dealers are in business, they can still save a lot of money by taking the time to visit a good auto insurance comparison shopping website.

These organizations put in the hard work of researching insurance companies and then listing their policy offerings in one easy to find place. The value provided for consumers in terms of time saved and discounts gained is considerable.

  • Safe vehicle discount – Dealers may be somewhat more likely than the average person to be driving newer cars and may be able to cash in on safe car discounts. Items that can include curtain and side impact airbags, anti-theft systems, and electronic traction systems all usually qualify for discounts.
  • Safe driving courses – These classes are offered in many municipalities and are often affordable. Once drivers have graduated from one of these courses, they usually stand to save reasonable amounts of cash on their insurance policies.
  • Safe driver discounts – This savings option if often offered to drivers who have spent significant amounts of time on the road without an at-fault accident. Individuals who have decades of such driving credentials often pay shockingly low monthly auto insurance premiums.
  • Student discount – Dealers who are also attending an accredited learning institution often qualify as students, and thus are eligible to receive student discounts on their insurance policies.
  • Bundling – By using the same insurance company to underwrite different kinds of policies, individuals can earn discounts. An example would be a person who buys their auto and home insurance from the same company.
  • Group discounts – Individuals who are members of certain groups may be eligible for auto insurance discounts. Since some dealers are also members of trade groups, this policy option may come in handy.

Special Options for Auto Dealers

While car dealers need insurance for their own personal vehicles, they also frequently require specialized insurance coverage options to service their businesses. The following items are a list of some commonly seen car dealership insurance items.

  • Garage Keepers Liability Insurance – This insurance option provides protection for dealerships that perform repair work for customers. In the event that a client vehicle is damaged during the course of repairs, this insurance offering pays the bills.
  • Errors and Omission coverage – This auto insurance option provides protection for used car dealers who need to verify the accuracy of odometers, titles, and more.
  • False Pretense coverage – This policy option can protect dealers in the event that they are defrauded in some way. For example, if a vehicle is damaged or stolen during a viewing session, this coverage would cover the losses.
  • Vehicle open lot protection – This coverage item protects the vehicles that are on the dealer’s lot. Common policy protections include collision damage and comprehensive protection. Dealership comprehensive protects lot owners against the same things that personal comprehensive insurance covers.

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Putting it All Together

It’s easy to see that there is more than meets the eye when it comes to running a successful car dealership.

Not only do dealership owners need to take care of the needs of their customers, but they need to make sure that their vehicle stocks are in the best possible shape.

The good news is car lot owners who make use of the information in this article can at the very least count on their inventories being well protected.

Find the best value for the car insurance coverage you need. Enter your zip code below to see how much you could save.