Getting insurance as a used car dealer can be a big step to take for any auto dealer to take. With that said, it is definitely a step in the right direction if you are sure that you want to get into the car dealing business. Most people that know the basics of this business know that it is very important to have a good insurance policy because if any of your cars that you are trying to sell get damaged, you will have to pay out of your own pocket for the coverage. What steps should a used car dealer take in order to get the proper amount of auto insurance without overpaying? Most dealers that are already in the business would laugh at a question like this because they have the experience of insuring all of their unsold vehicles.
Buying Insurance Specifically for Used Car Dealers
People that don’t have a lot of experience in the area of selling used cars are going to need to do some research and find out what type of coverage would be best for all of your unsold automobiles. It can really take a strong effort on your part if you are just starting out as a car dealer to overcome some of the obstacles that are associated with venturing out into this type of business. Once you have cars to sell, you obviously are going to want to go out and get used car dealers insurance coverage so that if your stock (e.g. vehicles) are damaged in any way, shape, or form, you will be insured and won’t have to worry about taking money out of your personal bank account for replacements.
Getting as a used car dealer
There are some essential steps that you should take if you are used car dealer and want to get insurance. I have outlined them below for you to take a look at and I hope that you find them helpful. I have done as much research as possible for this article, but I do not personally own a used car dealership so it would be tough for me to tell you exactly what needs to be done. However, if you are serious about starting your own auto dealership that sells used cars, you should make sure that you are taking time to get your business off to a proper start with some quality insurance coverage.
Contact other dealers in your area
The first step that you should take when thinking about getting used car dealer insurance is to speak with other dealers that are already in business. What better way to find out about how to get comprehensive car insurance as an auto dealer than to talk to someone who already has experience with it? Your best bet would be to contact multiple car dealers in your area and find out what they do for insurance on their used autos. Many dealers will be more than willing to help you figure out how to set things up with an insurer and will be able to give recommendations to you.
Some dealers are going to have different suggestions than others, and it may completely depend on the size of their dealership. Certain dealers may need to buy different types of insurance depending on the type of vehicles that they sell as well as the number of used cars that they have on the lot. If you don’t contact other dealers and ask about what they do for their insurance, you’ll never get things off to a good start. Don’t skip this step, it is probably the most important one listed in this entire article. After all, who knows the business better than someone already in it? The answer: nobody.
Shop around and see what different insurers offer
As with any type of car insurance, you are going to want to shop around to find the best rate. After you speak with multiple auto insurance dealers and ask about their insurers, you will find that they don’t always have the same policies or insurers. You will want to know the amount of coverage you are going to need and how many cars you plan on having on your sales lot.
Each car is going to need to be accounted for when it comes to insurance. Most insurers do not allow you to just say you’re a “used auto dealer” and then give you an estimate without knowing how many vehicles you have. Certain vehicles are also going to be worth more than others, so be sure to keep that in mind as well.
Setting up a used auto dealer insurance policy
When you have finally chosen an insurer for your used car dealership, you will want to make sure that you communicate with them and explain your business to them. They will want to know how many cars you plan on insuring and they will want information for each one. There are many computer programs that you can buy these days that will help you keep your vehicles organized within the paperwork that you will need to fill out. Good communication is essential with your insurer when you are running a used car dealership; tell them about your cars and be sure to take advantage of savings that come along with fleet insurance policies (i.e. buying insurance in bulk for many vehicles).
Reducing the price per vehicle on insurance
There are several factors that can reduce your price on insurance as a used vehicle dealer. If you have good security installed on your entire fleet and the vehicles stored under good surveillance, they are less likely to be stolen; this reduces risk. Whatever you can do to reduce risk of damage and theft should be done so that you get a lower rate on your policy. As long as you follow some of the tips mentioned within this article and keep trying your best to get an affordable policy as a used auto dealer, you will get one relatively quickly.