Unfortunately, every personal auto policy has an exclusion for commercial-type exposures. This means that when an accident happens, ownership of the vehicle will need to be proven. The purchase documents will show that the vehicle was purchased by the dealership. (If it was purchased by the dealer as a private party, then the dealer as a person would have had to pay the sales taxes and DMV fees.) Once a dealer is established as the owner of the vehicle, a personal auto policy will exclude all claims related to that vehicle.
Related FAQs
The California DMV insurance does not require proof of insurance to get or keep your used car dealer license. Even though it is not mandatory, getting insurance can save you quite a lot of trouble in your day-to-day operations.
Garagekeepers Coverage is designed to protect against claims arising from physical damage to vehicles owned by others that are left in your care, custody, or control. This includes vehicles that are being serviced, repaired, stored, and test-driven. This is an optional coverage that can [...]
We personally assist each of our insureds with a loss control survey in order to minimize or remove risk exposures.
In rare instances, collision losses affect more than one dealership vehicle at the same time. For example, let’s say a motorist loses control of their vehicle in front of your dealership and collides with six or seven dealership vehicles. With the aggregate deductible in [...]
