What is New Truck Dealerships Business Auto?
New Truck Dealerships Business Auto insurance is a commercial auto policy designed for dealerships that sell new trucks. It helps protect the vehicles owned by the dealership, those used for test drives, and any that are temporarily in the dealership's care. It's a key coverage for managing the risks that come with operating and maintaining a fleet of new trucks for sale or customer demonstration.
Who needs it
This type of insurance is essential for:
- Franchised truck dealerships
- Independent new truck retailers
- Dealerships offering test drives or delivery services
- Businesses with inventory of new trucks in their possession
If your business regularly operates, stores, or transports new trucks, this coverage can help protect against accident-related losses and liability claims.
What it typically covers
New Truck Dealerships Business Auto insurance often includes:
- Liability coverage: Helps cover damages if you're at fault in an accident during business operations.
- Physical damage coverage: Covers damage to dealership-owned vehicles due to collision, theft, or weather.
- Garagekeepers coverage: Protects customer vehicles stored on the lot or being serviced.
- Dealer plates coverage: Covers vehicles being driven with dealer plates during test drives or transport.
Common exclusions and limitations
While coverage can be broad, policies typically exclude:
- Intentional damage or illegal use of vehicles
- Personal use of dealership vehicles unless specifically endorsed
- Damage from racing or off-road use
- Wear and tear or mechanical breakdowns
Always review your policy for specific exclusions that may apply to your dealership's operations.
Factors that influence cost
Several factors can affect the cost of New Truck Dealerships Business Auto insurance:
- Number and type of vehicles in your inventory
- Location and size of the dealership
- Driving records of employees
- Claims history and loss experience
- Coverage limits and selected deductibles
Proof of insurance and compliance
Most states require proof of insurance for commercial auto operations, including those involving dealer plates. You may need to show valid coverage to obtain or renew your business license, register vehicles, or comply with franchisor requirements. Regulations vary, so it’s important to stay current with your state’s rules.
How to get a quote
Ready to protect your truck dealership? Get started by requesting a customized quote online. Get a quote now.
Frequently Asked Questions
What is the difference between Business Auto and Garage Liability?
Business Auto covers owned vehicle operations, while Garage Liability includes broader liability for operations like test drives and repairs.
Do I need coverage for vehicles in transit to my dealership?
If you're responsible for the trucks during transport, you may need additional transit or inland marine coverage. Check your policy terms.
Can employees use dealership vehicles for personal errands?
Personal use is typically excluded unless specifically endorsed. Policies usually require vehicles to be used strictly for business purposes.
Is customer property covered if damaged on my lot?
Yes, if you carry garagekeepers coverage, it can help protect customer vehicles in your care, custody, or control.
How often should I review my policy?
Review your policy annually or whenever your operations, inventory, or employee list changes significantly.
Still have questions? Talk to a local insurance expert.