Franchised Auto Dealers

Dealers of vehicles, trucks and equipment will find that AutoRisk has the expertise and insurance carrier relationships necessary to handle the exposures of your business.  AutoRisk knows dealerships and we work with Franchised Auto and Light Truck Dealerships, Independent Auto Dealers , Heavy Truck Dealerships, Equipment Dealerships and Motorycycle Dealerships.  If you are a specialized motorcycle dealership such has Harley Davidson, or if you have multiple brands AutoRisk can help you find the best combination of coverages for the lowest possible premium.

Providing coverage for businesses in:


Colorado – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri



Auto dealers have three sets of liabilities that are covered by an auto dealers policy. The first set of risks are the ones associated with ownership and operation of automobiles by the dealer. The second set of risks are general liability risks that are not related to ownership and operation of autos. Lastly an auto dealer is faced with professional liability risks associated with handling of auto titles and the satisfaction of disclosure requirements.

Make Payment Icon
Download Insurance Application button

Business needs and suitability vary greatly, so as you explore special coverages needed by your business it will be important to work with a professional experienced with working with Auto Dealers. Our team has over 55 years of combined experience working with businesses that require coverage for Auto Dealer risks, as well as the specific needs of auto dealers. We also understand that protecting your business requires more than an insurance policy. Our specialization allows us to create safety and compliance programs which are relevant to any business in the automotive industry, and the specialization allows us to create loss prevention solutions that are equally relevant.

Who needs auto dealer insurance?

If your business is a dealer of self-propelled motor vehicles or trailers, then your business fits the profile of a business needing Auto Dealer’s Insurance.
States, often have statutes or laws that state if you have a customer’s vehicle in your care, custody or control (such as a vehicle held on consignment) then you are legally liable for any damage caused to it and caused by it. In order to provide protection to their business and themselves as they comply with the state law, they purchase Auto Dealer’s Insurance

  • Franchised and independent private passenger auto dealers
  • Franchised and independent truck dealers
  • Franchised and independent trailer dealers (both residential and commercial)
  • Franchised and independent motorcycle dealers
  • Franchised and independent recreational vehicle dealers
  • Franchised and independent equipment and implement dealers
  • Franchised and independent dealers of self-propelled motor vehicles



Auto Dealers insurance provides just one set of coverages that are needed by businesses that conduct auto dealer operations. Other common possible coverage’s needed by these businesses include:

  • Building Coverage
  • Business Personal Property Coverage
  • Loss of Business Income
  • Employee Tools
  • Employment Practices Liability Coverage
  • Employee Benefits Liability Coverage
  • Completed Operations Coverage
  • Cyber Coverage
  • Umbrella Liability Coverage

What are the coverages in auto dealer policy?

Covered Auto Liability Coverage provides a dealer with liability coverage related to the use and operation of autos in his dealer business. Should one of his customers not have coverage, it is also extended to their customers while operating the dealers auto (for example when the customer is test driving an auto) should the customer be uninsured. Should the loss result in litigation, the insurance company will also pay for defense expenses related to the claim.

Garagekeepers Coverage covered the damage caused to the auto owned by the dealer’s customer while in the dealer’s care, custody and control (for example an auto held on consignment for sale.)

Physical Damage “Open-Lot” Coverage affords coverage for damage to an auto owned by the dealer. It can either be comprehensive or for specified causes of loss.

General Liability Coverage provides coverage for risks of loss that an auto dealer is exposed to that are not related to ownership and operation of autos. This part covers bodily injury and property damage that results from an auto dealer’s operations. It also affords coverage for allegations of personal and advertising injury that the dealer may be responsible for. Lastly, it provides no fault coverage for medical payments should someone be injured on the premises of the dealer.

Acts Errors and Omissions Coverage affords coverage for any acts, errors or omissions related to failure to comply with disclosure laws, any acts related to the dealer serving as an insurance broker or a title defect in an auto sold by the dealer.

Here are examples of losses covered under various sections of an Auto Dealer’s Policy:

Here are examples of losses covered under various sections of an Auto Dealer’s Policy:
Coverage PartLoss Example
Covered Auto Liability CoverageAn employee of the auto dealer while performing a final inspection of an auto in inventory runs a red light and collides into a vehicle. This coverage will pay for the damage to the other auto, as well as for any expenses related to defending the claim.
Garagekeepers CoverageWhile waiting to be picked up, a customer’s auto is damaged as a result of vandalism. This coverage will pay for the damage and possibly a replacement auto while the auto is being repaired
Physical Damage CoverageAn auto in the dealer’s inventory is struck from the rear while being test driven. This coverage will pay for the repair.
General LiabilityThe dealer’s repair to a customer’s auto damaged by a collision was not done per the manufacturer’s specifications. As a result the auto’s structural integrity was compromised. This was discovered after the auto was involved in a collision with a deer. This coverage will pay for the additional damage to the auto as well as the bodily injury suffered as a result of the compromise in the auto’s structural integrity
Personal and Advertising InjuryAn auto dealer represents that customers will not pay a specific tax because the auto dealer is not in the taxing district even though this is not the case. A customer who finds that this is not the case sues. This coverage will not only pay for expenses related to defending the suit, but also any damage as the result of the incorrect representation.
Medical PaymentsA customer took a misstep on a stair and fell. An ambulance was dispatched, the customer was taken to the hospital and was treated for their injury. This coverage will pay for the ambulance and the treatment without regard to fault.
Acts Errors and Omissions CoverageA dealer sells a customer an auto and delivers title to the auto. The prior owner was a partnership and only one of the partners endorsed the title over to the dealer. The other partner alleges they still have an ownership interest in the auto. This coverage will pay for damages resulting from the defect in the title as well as any legal expenses involved.
Copyright © 2019 AutoRisk. | Privacy Policy