For independent and growing dealerships
Car Dealer Insurance
Protecting stock vehicles is only part of the picture. Dealers may also need road risks, premises, liability, demonstration and business interruption protection.
Stock and driving risks move constantly
A dealer’s stock level can change week by week. The insurer needs a realistic maximum value at the premises and elsewhere, together with details of vehicle types, maximum individual value and how keys are controlled.
Demonstration arrangements should be agreed rather than assumed, particularly for young drivers, performance vehicles or unaccompanied test drives.
Potential cover areas
- Road risks and demonstration
- Vehicle stock
- Buildings and contents
- Public and employers’ liability
- Business interruption
- Money and legal expenses
Questions a dealer should be ready to answer
Where are stock vehicles kept overnight?
Explain all locations, security, lighting, barriers, CCTV and key storage arrangements.
Who can drive or demonstrate vehicles?
Provide accurate driver details and explain accompanied and unaccompanied demonstration procedures.
What is the maximum stock exposure?
Use a realistic peak figure rather than an average that may leave the business underinsured.
Focused commercial insurance guidance
What a car dealer should explain clearly
A dealer should give a clear picture of how vehicles are bought, stored, moved, demonstrated and sold. The insurer also needs to understand the premises and who is allowed to drive.
Stock values can change quickly. Regular records make it easier to spot when the declared value no longer reflects the vehicles on site.
- Keep an up-to-date stock list.
- Record who may drive vehicles.
- Describe test-drive controls.
- Review security and key storage.
Good stock and driver records make the risk easier to assess.