You’re getting ready to open your new car dealership and it seems like there are a million costs to consider—inventory, hiring staff, marketing, and mechanics. So, when it comes to auto dealers insurance, is it worth the extra cost?
Yes! It’s one thing every dealership needs to protect their business. Otherwise, you’re a risk of serious financial loss.
To find out why auto dealer insurance is so important, keep reading to find out.
Gives You Peace of Mind
One of the best reasons to have car dealership insurance is that it gives you peace of mind. As a business owner, you know how much money you’ve invested into buying cars, renting a lot, and advertising—what happens if it all goes wrong?
To understand the significance of auto dealers insurance, think about this—what if a thief breaks in and steals your cars? What if all your inventory is destroyed in a fire, hurricane, or high winds.
Insurance also protects your staff, just in case anyone is injured on the job.
Without insurance, you’d lose everything—don’t take the risk.
Protects Your Property and Your Staff
When you purchase insurance, part of your cost goes toward liability. Liability insurance specifically protects your dealership from injuries or damage, even if someone tries to sue you.
This protects both your property itself and your staff. Lawsuits are so common against business owners, even if you haven’t done anything wrong, so every business owner absolutely needs liability coverage.
Safeguard Against Loss of Income
One unique thing about car dealers is that their inventory is so much more valuable than, say, a grocery or clothing store. Some cars can be worth in the tens and thousands of dollars, so when you have dozens of cars in your showroom, it’s a massive amount of money just sitting out there for anyone to take.
Savvy dealership owners know that the right insurance will cover them if their stock is damaged—this auto insurance guide can help you determine which products are right for your needs.
Cover Test Drives
Test drives are an important part of selling cars, but what happens when your driver rear-ends another car? Oops.
It’s easy to make mistakes when driving a car you’re unfamiliar with, which is why every dealer needs comprehensive insurance that covers test drives.
Find the Right Auto Dealers Insurance for Your Business
We hope it’s now clear as to how important auto dealers insurance is! There’s no way you can run your dealership without it, so do more research to decide which insurance is right for you.
Find a broker who specializes in car dealerships, as they can recommend the best options. Then, you can run your dealership with confidence, knowing you’re protected in case anything goes wrong.
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