Drive Sales. Not Risk.
Protecting inventory, customers, and dealership operations
Car dealerships face unique risks involving vehicle inventory, customer test drives, employee activity, and daily interaction with the public. Whether operating a new car dealership, used car lot, or multi-location auto sales business, exposures can arise from accidents, property damage, theft, or liability claims. Even a single incident involving a vehicle, customer, or employee can lead to costly losses.
Properly structured insurance helps protect your inventory, your property, and the long-term stability of your dealership.
Key Risks in Car Dealership Operations
Dealerships face exposure related to:
Damage to vehicle inventory
Customer accidents during test drives
Garage liability claims
Employee injuries
Theft or vandalism
Property damage to the lot or building
Contract and lender requirements
Losses can occur even in well-managed dealerships.
Core Coverages for Car Dealerships
Dealership insurance programs typically include:
Garage Liability — Protects against bodily injury and property damage claims related to dealership operations.
Garagekeepers Coverage — Protects customer vehicles while in your care, custody, or control.
Dealer Open Lot / Inventory Coverage — Covers vehicles held for sale against damage, theft, or certain physical loss.
Commercial Property — Covers buildings, offices, and equipment against covered loss.
Workers’ Compensation — Provides coverage for employee injuries as required by law.
Commercial Auto — Covers dealership-owned vehicles used for business purposes.
Umbrella / Excess Liability — Provides additional limits for severe or multi-claim situations.
What’s Commonly Overlooked
Dealership insurance programs are often weakened by:
Underinsured vehicle inventory
Missing test drive coverage
Inadequate liability limits
No coverage for weather damage
Gaps between garage and auto coverage
Failure to update inventory values
These issues often appear only after a claim occurs.
Real-World Claim Examples
A customer crashes during a test drive
Hail damages multiple vehicles on the lot
A fire damages the showroom
A customer is injured on the property
A vehicle is stolen overnight
Even one loss can result in significant financial impact.
Why Proper Placement Matters
Dealership coverage varies based on:
Number of vehicles in inventory
Type of vehicles sold
Test drive exposure
Lot size and location
Lender requirements
State regulations
Improper placement can lead to uncovered losses or contract issues.
Our Approach
At Cory Washington & Co., we structure dealership insurance programs based on your inventory value, lot exposure, and daily operations. We coordinate garage liability, inventory, property, and excess coverage to ensure your business is protected from the real risks of selling and servicing vehicles.
When your business depends on inventory, protection must keep up with it.
Related coverage: Garage Liability · Dealers' Open Lot · Commercial Auto.
Not sure your coverage is complete? Run the Auto Dealer Coverage Self-Review Checklist — tick what you can confirm, and walk into your next policy review informed.
Download the fillable Auto Dealer Supplemental to start your submission, or browse all applications.
Frequently Asked Questions
How do I get car dealership insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate car dealership insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How are car dealership insurance premiums priced?
There is no flat rate. The cost of car dealership insurance reflects your industry, your size (payroll and revenue), your claims history, and the limits and deductibles you choose. We market your account to multiple carriers, compare the real quotes side by side, and explain what is driving each number so you can weigh coverage against price with confidence.
Is car dealership insurance mandatory?
Whether car dealership insurance is strictly required depends on your state, your contracts, and your lenders or clients. Even where it is not mandatory, going without it can leave serious financial gaps. We assess your exposure and any contractual requirements, then structure coverage that meets both.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.