Apply for a Missouri Surety Bond today! Single Source Insurance is a leading MO surety bond company. Apply easily online and take advantage of lowest rates. Quickly browse the bonds we offer for this state, or contact us for a full list.
In addition to obtaining a�$25,000 auto dealer bond, Missouri motor vehicle dealers are also required to purchase garage liability insurance in order to become licensed. Learn more about this policy below, and request a quote from Single Source Insurance today.
Though general liability insurance covers bodily injuries to non-employees on the premises of an insured business, it does not cover damage to vehicles. That�s typically obtained by purchasing a commercial auto insurance policy. But commercial auto insurance policies cover damage to dealer-owned vehicles only�not to customers� vehicles.
Garage liability insurance is a sort of hybrid that combines certain features of general liability and commercial auto insurance. It covers bodily injuries suffered by non-employees in the course of daily operations, including during test drives of customer-owned vehicles. For example, if the brakes fail on a customer’s vehicle while it’s being driven by an employee, and that vehicle ends up in your living room or swimming pool, your claim for damages will be covered under this policy.
You can add garage keeper�s coverage to a garage liability policy as a way to extend protection to customers� vehicles while they are in your custody, care, and control. Damage to or loss of a customer�s vehicle is covered regardless of whether it was caused by:
An employee�s negligence or error
Faulty parts
Severe weather (e.g., hailstorms, tornados, hurricanes)
What is Garage Liability Insurance for Missouri Dealerships?
As part of the process of becoming a licensed motor vehicle dealer in Missouri, applicants must provide a copy of a current dealer garage liability policy. This requirement applies to both new and used car dealers, power sport dealers, wholesale motor vehicle dealers, boat dealers, and emergency vehicle dealers.
Even businesses that may not have to purchase garage liability insurance as a condition of licensing benefit greatly from it to protect themselves from risk in the event of a claim. This includes dealerships and businesses such as:
Restaurants, hotels, and hospitals that provide valet parking
Independent valet parking services that are hired for parties and special events
Parking garages
How Does It Work?
All insurance exists to transfer risk from policyholders to an insurance company, and garage liability insurance is no exception. The policyholder pays premiums in exchange for the insurance company to pay out on any valid claims filed for bodily injury, property damage, or other covered loss.
Many auto-related businesses choose to combine garage liability and garage keeper�s coverage with their Worker�s Compensation insurance and other important coverages to create what is known as a Business Owners Policy (or BOP).
How Much Does It Cost?
The cost of garage liability insurance depends on certain choices made by the business owner:
The specific coverages included in the policy
The deductible chosen when the policy is purchased
The coverage limits (i.e., the maximum amount the insurance company will pay on a single claim)
In most cases, the annual premium for garage liability insurance will be in the $300 to $2,000 range.
Request A Quote
Contact us with any questions you may have about obtaining the surety bond and insurance you�ll need for your auto dealership or auto-related business.
insurance policy, risk management, liability insurance, insurance, dealer insurance cost, life insurance, pollution, negligence, legal liability, risk, accident, vehicle, property, employment, injury, property insurance, inventory, policy, extreme weather, truck, customer, property damage, home insurance, assault, insurance solutions, business insurance, commercial auto insurance, insurance coverage, physical damage coverage, liability, equipment, auto insurance, liability coverage, insurance company, car dealer insurance, dealership insurance, auto dealer insurance, garage liability insurance, classic car insurance, lawsuit, health insurance, management, bond, company, flood, underwriting, theft, construction, cost, income, motorcycle, transport, hail, used car, surety, umbrella, expense, umbrella insurance, sexual abuse, georgia, missouri, vehicle insurance, professional liability insurance, liability insurance missouri, personal injury, cyber insurance, damages, road, deductible, kansas, roadside assistance, bodily, cheapest car insurance, missouri auto insurance, general liability insurance, car insurance rate, minimum car insurance, general liability, business liability insurance, professional liability, underinsured motorist coverage, bodily injury, insurance in missouri, small business insurance, car insurance coverage, missouri business insurance, underinsured motorist, car insurance quote, insurance requirements, car insurance coverages, commercial general liability insurance, credit card, license, law, zip code, budget, pet insurance, data breach, data, slip and fall, asset, defensive driving, contract, auto dealer insurance cost, vandalism, crime, collision, auto dealer bond, auto dealers insurance, business insurance cost, general, commercial umbrella insurance, insurance business, insurance home, auto liability, commercial general liability, general liability policy, insurance renters insurance, insurance cost, dealer insurance, insurance group, commercial auto, identity theft, michigan, employee benefits, employment practices liability, automotive industry, wage, loan, marine insurance, auto mechanic, health, tow truck, business interruption insurance, test drive, product liability, houston, disaster
Frequently Asked Questions
What is the average annual cost of auto dealer insurance?
The average annual cost of auto dealer insurance is typically between $2,000 to $5,000, depending on factors such as the size of the dealership, location, and coverage required.
How much does commercial auto insurance cost for dealers?
The cost of commercial auto insurance for dealers varies based on factors such as the type and number of vehicles, coverage limits, and the dealer's driving and claims history. Typical annual premiums range from $2,000 to $5,000 on average.
How does the type of vehicles affect auto dealer insurance cost?
The type of vehicles affects auto dealer insurance cost due to factors such as vehicle value, safety features, and risk of theft or damage, which determine the premium rates charged by insurance providers.
What is the average cost of dealer insurance for a small business?
The average cost of dealer insurance for a small business can range from $500 to $3,000 per year, depending on factors such as the size of the business, the value of the inventory, and the coverage required.
Are dealer insurance costs higher for luxury car dealerships?
Dealer insurance costs are typically higher for luxury car dealerships due to the increased value and risk associated with high-end vehicles.
What is the cheapest auto dealer insurance option available?
The cheapest auto dealer insurance option available is liability-only coverage, which provides protection for damages you cause to others in an accident, but does not cover damage to your own vehicle.
How much does auto dealer insurance typically cost?
The typical cost of auto dealer insurance varies based on factors such as the size of the dealership, the number of vehicles, and the required coverage. Generally, the annual premium for auto dealer insurance ranges from $5,000 to $15,000 or more.
How does location impact auto dealer insurance cost?
The location of an auto dealership can significantly impact the cost of insurance. Factors such as crime rates, natural disaster risks, and traffic patterns in the area can influence insurance premiums for auto dealers.
What factors influence the cost of dealer insurance premiums?
The factors that influence the cost of dealer insurance premiums include the size of the dealership, the types of vehicles sold, the dealership's claims history, the level of coverage needed, and the location of the dealership.
How does location affect dealer insurance cost in the United States?
The location of a dealership in the United States can significantly affect the cost of dealer insurance. Factors such as crime rates, natural disaster risks, and regional insurance regulations can influence the insurance premiums for dealers.
What factors affect the cost of auto dealer insurance?
The factors that affect the cost of auto dealer insurance include the size and location of the dealership, the types of vehicles sold, the dealership's claims history, and the level of coverage required.
Is auto dealer insurance more expensive than other business insurance?
Auto dealer insurance is generally more expensive than other business insurance due to the higher risks associated with selling and servicing vehicles.
Do small auto dealerships pay less for insurance?
Small auto dealerships may pay less for insurance due to their smaller size and lower risk profile compared to larger dealerships.
How does business size impact dealer insurance cost?
The size of a business can impact the cost of dealer insurance. Larger businesses typically have higher insurance premiums due to their increased risk exposure and potential for larger claims.
Do new auto dealerships pay more for insurance than established ones?
New auto dealerships typically pay more for insurance than established ones due to their higher risk profile and lack of proven track record.
Can I bundle policies to reduce auto dealer insurance costs?
Bundling policies can potentially reduce auto dealer insurance costs by consolidating coverage and negotiating better rates. Bundling related policies like general liability, property, and workers' compensation can provide cost savings.
What factors determine auto dealer insurance costs?
The factors that determine auto dealer insurance costs include the size and type of the dealership, the number and value of vehicles on the lot, the dealership's claims history, and the level of coverage required.
How can I lower dealer insurance premiums?
Lowering dealer insurance premiums can be achieved by maintaining a clean driving record, installing safety features, increasing deductibles, and shopping around for better rates.
What types of coverage are offered for dealers?
The types of coverage offered for dealers include liability coverage, property coverage, and specialty coverages such as garage keeper's legal liability and garagekeepers coverage.
Are there discounts for auto dealer insurance?
Discounts for auto dealer insurance may be available, such as for multiple vehicles, good claims history, or safety measures. The availability and amount of discounts can vary by insurance provider.
What impacts insurance rates for used car dealerships?
The key factors that impact insurance rates for used car dealerships include the size and age of the vehicle inventory, the level of security measures in place, the claims history of the dealership, and the location and competitive landscape of the business.
How does credit history affect dealer insurance costs?
A customer's credit history can affect the insurance costs for a dealer. Dealers typically assess an individual's credit score when determining the insurance rates for their vehicles, as credit history is a key factor in assessing risk.
What are typical claims made by auto dealers?
Typical claims made by auto dealers often include offers of "one-time only" deals, "special factory incentives," and "the lowest prices in the area," which may be exaggerated or misleading.
What distinguishes commercial auto insurance from dealer insurance?
The key distinction between commercial auto insurance and dealer insurance is that commercial auto insurance covers vehicles used for business purposes, while dealer insurance specifically insures vehicles held in inventory by auto dealerships.
How often should dealers review their insurance policy?
Dealers should review their insurance policy regularly, typically annually, to ensure their coverage remains adequate and aligned with their evolving business needs.
What risks are covered under auto dealer insurance?
Auto dealer insurance covers risks such as liability for customer injuries, damages to customer vehicles, and theft or vandalism of vehicles on the dealership premises.
How can seasonal sales impact insurance rates?
Seasonal sales can impact insurance rates by affecting the risk profile of policyholders. Changes in consumer spending and activity levels during peak seasons may necessitate adjustments to insurance premiums to maintain profitability and coverage alignment.
What are the requirements for dealer insurance renewal?
The requirements for dealer insurance renewal typically include maintaining valid licenses, submitting financial statements, and providing updated information on business operations and claims history.
What should be included in a dealer insurance policy?
A dealer insurance policy should include coverage for property damage, liability, inventory, and employee-related risks to protect the dealership from financial losses.
How does the dealerships location influence insurance rates?
The location of the dealership can influence insurance rates due to factors such as crime rates, weather conditions, and risk of theft or vandalism in the area, which can affect the insurance provider's assessment of the risk.
florida dealer garage insurance policy, auto dealer insurance missouri, garage liability insurance cost, missouri auto dealer bond, missouri dealer insurance, garage liability insurance companies, auto dealer garage liability insurance
