Colonial General Insurance Agency, Inc. offers a Salvage Yard Insurance program tailored to the unique risks of salvage yards, auto dismantlers, and impound facilities. Through our Commercial Garage department, we provide agents and brokers access to a broad set of coverages crafted for this niche industry. Whether your client operates a small yard or a larger facility with towing and vehicle sales operations, our underwriting team will work with you to secure appropriate protection.
Ideal Accounts and Appetite
Our program is a strong fit for:
- Auto salvage yards and recyclers
- Vehicle impound lots (fenced and gated)
- Auto dismantlers with parts resale operations
- Operators offering towing services or in-transit vehicle movement
- Facilities selling vehicles “AS IS”
All accounts must meet basic security requirements, including fully fenced and gated yards. We accept “AS IS” vehicle sales and towing operations, making this a flexible solution for complex garage risks. Accounts with poor site security, extensive on-site retail operations unrelated to vehicle parts, or significant environmental contamination exposures are generally not a fit without mitigation.
Coverage Highlights and Advantages
This program delivers Commercial Garage coverage options customized for salvage operations, including:
- Garage Liability limits up to $1,000,000 per accident
- $3,000,000 aggregate liability limit
- $5,000 medical payments
- Garage Keepers coverage on a primary basis with specified causes of loss
- Dealers Physical Damage
- False pretense coverage
- Fire legal liability
- In-transit coverage for towing operations
- Broadened coverage endorsements available
- Property coverage options
These coverages help your clients manage exposures tied to customer vehicles, on-site property damage, theft, and liability from sales or towing operations. Endorsement flexibility and a garage-focused underwriting approach make the program useful for mixed-operation facilities.
Underwriting Notes and Minimum Premiums
Underwriting is done on a risk-by-risk basis. We look for well-managed operations with adequate security, documented safety practices, and acceptable claims histories. Fully fenced and gated facilities are required for eligibility. Minimum premiums vary by state and risk characteristics; our underwriters will provide state-specific guidance when you submit an inquiry.
Territories and Availability
Colonial General’s Salvage Yard Insurance program is available in the following states:
- Arizona (AZ)
- California (CA)
- Colorado (CO)
- Idaho (ID)
- Nevada (NV)
- New Mexico (NM)
- Utah (UT)
- Wyoming (WY)
Coverage is placed through a mix of admitted and non-admitted markets depending on carrier appetite and state regulations.
Why Work With Colonial General?
As a Managing General Agency and Excess & Surplus Lines broker, Colonial General brings deep expertise in garage and auto-related risks. Our team understands salvage yard exposures and offers hands-on underwriting, fast responses, and access to multiple carrier relationships. We help agents place tough-to-insure accounts with practical coverage solutions and the flexibility many salvage operations need.
Example scenarios that fit this program: you have a client who runs a fenced salvage yard with onsite dismantling and occasional “AS IS” sales; or a tow operator who stores impounded vehicles in a secured yard and needs both in-transit and garage keepers coverage. For these and similar risks, Colonial General can be a placement option.
Have a client with a fenced salvage yard that also offers towing and sells vehicles “AS IS”? This program is built for that type of operation. Contact us today to discuss your next salvage yard risk.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Ideal accounts include salvage yards, auto dismantlers, impound lots, and operations with towing or auto sales components. All facilities must be fully fenced and gated.
Is coverage available for towing operations?
Yes. The program includes in-transit coverage for towing operations, making it suitable for businesses that regularly move vehicles as part of their services.
What are the minimum underwriting requirements?
Facilities must be fully fenced and gated. Underwriters also review safety practices, claims history, and the overall scope of operations when assessing eligibility.
Can this program accommodate “AS IS” vehicle sales?
Yes. “AS IS” sales are acceptable within this program, which provides flexibility for many salvage and resale operations.
Which states is this program available in?
This program is available in AZ, CA, CO, ID, NV, NM, UT, and WY.
Need help placing an account? Connect with a market specialist.