Looking for Auto Sales Insurance?
Protect your dealership from inventory damage, test drive accidents, liability claims, and customer injuries. Harper provides insurance for new-car dealerships, used-car lots, and automotive wholesalers, with fast certificates of insurance for lenders, manufacturers, and property owners.
What is Auto Sales Insurance?
Auto sales insurance protects dealerships against risks such as vehicle damage, customer injuries, test-drive accidents, and property-related claims. Coverage commonly includes garage liability, dealer’s open lot coverage for inventory, and general liability. Manufacturers and floor plan lenders typically require proof of insurance before granting franchises or financing inventory.
Inventory Protection
Dealer’s open lot coverage protects vehicles on your lot from theft, vandalism, fire, and weather-related damage.
Garage Liability
Covers claims arising from test drives, customer injuries, and daily dealership operations.
Business Property
Covers showrooms, offices, signage, and dealership-owned equipment.
Certificates
Fast proof of insurance for lenders, manufacturers, and property owners.
Who Needs Auto Sales Insurance?
- New car dealerships : Businesses requiring specialized insurance coverage
- Used car dealers : Businesses requiring specialized insurance coverage
- Automotive wholesalers : Businesses requiring specialized insurance coverage
- Consignment auto sales operations : Businesses requiring specialized insurance coverage
Why Harper?
Auto Sales Expertise
Dealerships face exposure beyond standard retail risk, including test-drive liability, high-value inventory, and service-related claims. Harper understands these risks and offers coverage specifically designed for dealership operations.
Fast Proof for Manufacturers and Lenders
Franchise agreements and floor plan lenders require precise insurance documentation. Harper delivers accurate certificates quickly and assists with manufacturer or lender-specific requirements to avoid delays.
Clear, Practical Guidance
We explain garage liability, dealer’s open lot, garagekeepers, and general liability in straightforward terms so you understand how each coverage applies to your dealership.
Coverage Matched to Your Operations
Whether you operate a new-car franchise, an independent used-car lot, a wholesale operation, or a dealership with a service department, Harper helps align coverage with your business model.
Frequently Asked Questions
What insurance do auto dealers need?
Most dealers need garage liability, dealer’s open lot coverage for inventory, and general liability. Dealerships with service departments may need garagekeepers coverage. Workers' compensation is required if you have employees.
Is auto sales insurance required?
Yes. Floor plan lenders require inventory coverage, manufacturers require garage liability, and states require insurance to maintain dealership licenses.
How much does auto dealership insurance cost?
Costs vary by inventory value, services, and location. Smaller used-car lots may pay $3,000–$8,000 annually, while new-car dealerships typically pay $10,000-$30,000 or more.
Does insurance cover test drives?
Garage liability may apply to accidents that occur during test drives involving dealership vehicles, subject to the policy's terms.
Does insurance cover inventory damage?
Dealer’s open lot coverage protects vehicles on your lot from theft, vandalism, fire, and covered weather events.
Can I add manufacturers as additional insureds?
Yes. Franchise agreements often require manufacturers to be added as additional insureds, and Harper assists with meeting this requirement.