Here’s a little-known fact, insurance is not mandatory in every state. If you are in a state where the DMV mandates insurance, you likely know it. Insurance is not required in order to obtain a retail dealer license in states like California! The same goes for a wholesale dealer license with or without an auto broker endorsement. A surety bond or car dealer bond is required to get or keep your license but that’s a different topic.
As a Car Dealer that’s always looking to save a buck, why would you need insurance if the DMV doesn’t mandate it? Again, glad you asked – here are just a few reasons…
- You need to sleep at night for starters!
- Used Car Dealer Insurance can be tailored to suit your risk tolerance and price sensitivity.
- Dealer Insurance allows for a simple monthly payment schedule, unlike the bond that is typically due in full.
- All flooring companies used to purchase inventory will mandate insurance to protect their investment.
You’d be surprised how inexpensive it can be to buy insurance your car dealer business.
