Auto dealer insurance information will be useful for you who have used car dealers. That’s why this article will tell you more about different coverage that can be chosen for used car dealers, especially in Illinois. The number of used car dealers in this city reach thousands number and 700 of them have been registered in the Chicago City. Coverage limits and types can be different from state to sate, so be sure you find the right one.
Minimum Liability Coverage
Generally, we can say that car dealer insurance is a lot more expensive than standard auto insurance. It is sensible since the insurance providers do not know the one who will sit behind the wheel when test drives are conducted.
Besides, the limits of liability coverage for used car dealers will be higher than the limits of personal car insurance.
The Illinois State requires each used car dear maintains the minimum liability coverage of $100,000 for bodily injury one person, $300,000 for bodily injury for bodily injury total in one accident, and $50,000 for property damage in one car accident. It can be simply called in the formulae 100/300/50.
Mandatory and Optional Coverage
When a used car dealer is going to purchase auto insurance, auto dealer insurance also includes the optional coverage. The first of them is garage liability. It protects the liability from the ownership and maintenance of the garage.
This liability usually gives protection for premises like fall and slip, as well as for car accidents. The minimum liability limit has to carry 100/300/50 in Illinois.
Then, to give protection for the dealer of used car in case of being sued due to a car accident, dealer owner has to consider auto liability.
The minimum liability coverage in Illinois is 100/300/50 for all dealers of used car. Usually, this coverage has been included with garage liability.
The coverage of auto dealer insurance is dealers open lot. It gives coverage for physical damage on cars that a used car dealer has. It commonly includes the Collision Coverage (in case the car collides with another car or objects), and also include some other types of coverage.
First, a dealer open lot includes comprehensive coverage that gives protection towards anything excluding collision, like car theft.
Then, it also includes specified cause that covers certain coverage that is state on the policy like lightening, fire, theft, explosion, hail, windstorm, vandalism and mischief. Last, the inclusion is Fire and Theft that gives coverage less than coverage of specified cause.
Some other coverage types of auto dealer insurance can be taken into account, too. Garage Keepers Liability, for instance, will be useful if a car dealer wants to get covered for any car or body repairs that a dealership does not own.
In other term, this coverage is like coverage of dealer open lot, but this one only goes for the cars that a dealer does not have. Only those that are in dealer possession that will covered by garage keeper liability.
False Pretense is another optional coverage of auto dealer insurance. It gives protection towards any losses of car when the dealer is cheated or scammed voluntarily.
For instance, if a dealer gives approval for someone to have a test driving and he/she runs away with the car, then the car is determined to be lost. False Pretense will cover the lost car.
The last optional coverage is E & O Coverage. It is called E and O since it stands for Error and Omission, meaning that this coverage gives protection for certain errors and omission regarding with operations of used car dealers.
Those are the types of coverage before a used car dealer when they plan to purchase auto dealer insurance. Decide what your needed coverage and begin searching.