What is New Truck Dealerships Insurance?
New truck dealership insurance is a specialized commercial policy designed to protect businesses that sell new trucks. These dealerships face unique liability exposures, including vehicle damage, test drive accidents, and property risks on the sales lot. This coverage helps manage those risks while ensuring compliance with lender and manufacturer requirements.
Whether you operate a small independent dealership or a large franchise location, having the right mix of coverages is essential for protecting your assets and operations.
Who Needs It
This insurance is ideal for businesses that sell or lease new trucks, including franchise dealers, independent truck retailers, and commercial vehicle dealerships. Operators involved in servicing or customizing new trucks may also benefit from similar protection, as they face overlapping risks.
Dealerships with on-site service bays, financing departments, or vehicle storage lots have added exposure to property damage, customer injury claims, and environmental liabilities.
What it Typically Covers
New truck dealership insurance usually includes a combination of the following coverage types:
- Garage liability coverage – protects against bodily injury or property damage resulting from dealership operations.
- Garagekeepers insurance – covers damage to customer vehicles left in your care, such as during service or cleaning.
- Dealer’s physical damage coverage – insures the dealership’s inventory of new trucks against theft, fire, vandalism, or weather events.
- Commercial property insurance – protects buildings, signage, and business contents.
- Commercial auto exposure – covers company-owned service vehicles or demo trucks.
For example, if a customer slips and falls on a wet showroom floor, general liability coverage may help cover medical costs and legal fees.
Common Exclusions or Limitations
Typical exclusions may include:
- Wear and tear on inventory or service vehicles
- Employee injuries (usually covered under workers' comp)
- Intentional damage or dishonest acts
- Pollution liability unless specifically endorsed
Dealers with on-site fuel tanks or repair operations should consider pollution liability insurance to address environmental risks.
Factors That Influence Cost
Premiums for new truck dealership insurance vary based on several underwriting factors, including:
- Location and size of the dealership
- Number of trucks in inventory
- Annual revenue and payroll
- On-site services like repairs or customization
- Loss history and risk management practices
Operations that include hazardous materials storage or high-volume test drives may see increased rates due to elevated liability exposure.
Proof of Insurance & Compliance
Lenders, floorplan financiers, and manufacturers often require proof of insurance with specified limits and endorsements. Certificates of insurance are typically issued to confirm coverage. Maintaining compliance with these requirements helps avoid disruptions in your supply chain and financing arrangements.
How to Get a Quote
To get a quote for new truck dealership insurance, gather your business details including inventory size, services offered, and current coverage (if any). Work with a licensed commercial insurance agent who understands dealership risks and can tailor coverage to your specific needs.
Request a quote today to protect your dealership and keep your business moving.
Frequently Asked Questions
Is new truck dealership insurance required by law?
While not always required by law, many lenders and manufacturers require dealerships to carry insurance as part of contractual agreements.
Does this coverage include test drives?
Yes, garage liability usually includes coverage for accidents that occur during test drives, but it’s important to verify specific policy terms.
Can I add coverage for used trucks or trailers?
Yes, many policies can be extended to include used vehicle inventory or trailers, depending on your business operations.
What if I offer vehicle repairs on-site?
On-site repairs increase your exposure and may require additional coverage like garagekeepers and mechanics errors and omissions coverage.
Does it include environmental liability?
Environmental or pollution liability is often excluded but can be added through endorsements or separate policies if needed.
Still have questions? Talk to a local insurance expert.