Auto Dealer Insurance in Michigan

Auto dealer insurance in Michigan is a very important part of owning and operating an auto dealership. This type of coverage helps protect dealerships from potential liabilities associated with the sale, maintenance, and repair of vehicles. 

Auto dealers need to be sure they understand their insurance needs in order to make informed decisions when selecting coverage. Auto dealer insurance providers in Michigan offer a broad range of coverage options, and it’s important to know which type is right for your business.

Auto dealer industries require specific coverage and protection that most businesses never think of. Auto dealer insurance in Michigan provides the following coverage:

a) General Liability Insurance: General Liability Insurance provides coverage for bodily injury, property damage, and personal/advertising injury liabilities that may arise from the company’s operations. This includes coverage for legal costs associated with claims made against the insured business, such as medical bills and lost wages resulting from a customer’s accident on dealership premises. Auto dealers need to ensure they have adequate coverage since liability can become quite expensive.

b) Garage Liability Insurance: Garage Liability Insurance provides protection against claims arising from the garage’s operations, such as customer injury or damage to vehicles stored on dealership premises. This coverage also includes legal and defense costs associated with negligence or faulty workmanship claims. This coverage is essential for dealerships who repair and service customer vehicles since the risk of a claim can be quite high due to the nature of the business.

c) Property Insurance: Property Insurance helps protect auto dealerships from financial loss due to damage or theft of business property. This coverage helps pay for the replacement costs of any damaged or stolen items and helps protect against loss of income due to disruption in operations. Property insurance can also provide additional protection for customers’ vehicles stored on dealership premises in case of a fire, vandalism, or other covered events.

d) Garagekeeper’s Legal Liability: Garagekeeper’s Legal Liability helps protect auto dealerships from damage to customers’ vehicles due to the garage’s negligence or faulty artistry. This coverage helps pay for repair costs, legal defense, and court fees associated with any claims arising from services or repairs provided by the dealership. Garagekeeper’s Legal Liability is essential for auto dealers and should be included as part of any Michigan auto dealer insurance policy.

e) Crime Insurance: Crime Insurance helps protect auto dealerships from loss of income due to employee theft or other types of crime. This coverage helps cover the cost of stolen merchandise, money, and other assets taken without permission. Crime insurance also helps pay for legal fees associated with criminal prosecution and any losses resulting from fraudulent activity.

f) Employment Practices Liability: Employment Practices Liability helps protect auto dealerships from claims filed by employees for wrongful termination, discrimination, and other employment-related issues. This coverage helps cover the cost of legal defense and any damages awarded to the employee(s). Employment Practices Liability is an important coverage since it can help protect a dealership from expensive lawsuits and other costs associated with employment disputes.

g) Commercial Umbrella Insurance: Commercial Umbrella Insurance provides additional liability protection for auto dealerships. This coverage helps pay for costs exceeding the limits of other liability policies, such as general or garage liability. Commercial Umbrella Insurance is important coverage since it helps protect a dealership from potential unforeseen costs due to liability claims.

h) Commercial Auto Insurance: Commercial Auto Insurance helps provide protection for vehicles owned or operated by the auto dealer. This coverage helps pay for property damage, medical bills, and other costs related to an accident involving a dealership vehicle. It is important to have adequate Commercial Auto Insurance since it can help cover costly repairs and other costs associated with an accident on the road.

Additional Coverages:

• Workers Compensation: Workers in auto dealer companies are exposed to the risk of injury or illness due to their jobs. Workers' Compensation helps cover medical bills, lost wages, and other costs associated with employee injuries or illnesses during employment.
• Cyber Liability: Cyber Liability covers auto dealerships from claims related to data breaches, identity theft, and cyber extortion. This coverage helps pay for losses related to stolen data, legal defense costs, and other costs associated with a cyber-attack. Cyber Liability is essential in today's digital age and should be included as part of any auto dealership insurance policy.
• ERISA Bonds: ERISA Bonds help protect auto dealerships from fraudulent activities related to employee benefit plans. This coverage helps pay for losses due to embezzlement, misappropriation of funds, or other fraudulent acts by employees. 
  

The cost of auto dealer insurance in Michigan can vary greatly depending on several factors. These include:

• The amount of coverage: The amount of coverage you choose will typically determine the overall cost of your policy. Higher coverage limits will usually result in higher premiums, while lower coverage limits may reduce the cost of your policy.
• The type of vehicles sold: The types of vehicles sold by your dealership can also affect the cost of your auto dealer insurance policy. Specialty and higher-end luxury cars typically require more coverage, which can result in higher premiums.
• Claims history: Your dealership’s claims history will also be a factor in determining your policy cost. If you have had previous claims or incidents of losses, this may result in increased premiums.
• Discounts offered: Many auto dealer insurance companies offer discounts to policyholders. These may include discounts for having multiple policies with the same company, taking safety courses, or other similar measures. Shopping around and comparing quotes from different insurers can also help you find the best rate on your policy.
• Risk profile: Your dealership’s risk profile is also a factor in determining the cost of your policy. Risk factors such as the location and size of the dealership can play a role in the overall price of your insurance.

Oakland Insurance is here to help you find the best rates on auto dealer insurance policies in Michigan.

In order to save money on auto dealer insurance in Michigan, you can take a few steps such as:

• Shop around and compare quotes from different insurers. Comparing rates from various companies can help you find the best rate for your policy.
• Look for discounts offered by insurers. Many auto dealerships may be eligible for discounts if they take certain safety measures or have more than one policy with the same company.
• Increase your deductible. Increasing your deductible can help reduce the cost of your policy, as you will be taking on a larger portion of the risk in exchange for lower premiums.
• Review and update your coverage regularly. As your business grows and changes, be sure to review your policy and update it as needed. Having the right amount of coverage can help you save money in the long run.

Following these steps can help you save money on Michigan auto dealer insurance while maintaining adequate coverage for your dealership.

Auto dealer insurance in Michigan is appropriate for the following:

• Any dealership that sells and services new or used cars
• Dealerships that offer extended warranties, service contracts, or gap coverage
• Auto dealerships that provide loaner vehicles for customers
• Any business that repairs or reconditions vehicles

Auto dealer insurance in Michigan is necessary for any car dealership to protect its business from potential liabilities and losses. Oakland Insurance can help you find the best coverage for your dealership’s needs.

Is auto dealer insurance mandatory in Michigan?

Yes, auto dealer insurance is a state requirement for any business that deals with the sale and service of vehicles. This type of coverage provides protection from potential liabilities, losses, and damages.

What does an auto dealer insurance policy cover?

Auto dealer insurance policies typically cover property damage, bodily injury liability, and uninsured/underinsured motorist coverage. Some policies also include coverage for customer vehicles in case of a breakdown or accident.

Who should consider getting auto dealer insurance in Michigan?

Auto dealer insurance is generally recommended for any business that sells or services new or used cars, offers extended warranties, provides loaner vehicles, or repairs and reconditions vehicles. A comprehensive auto dealer insurance policy can help protect your business from potential liabilities and losses.

How can I save money on my auto dealer insurance in Michigan?

There are several ways to save money on auto dealer insurance in Michigan. Shopping around and comparing quotes from different insurers can help you find the best rate for your policy.

Who can help me find my business's best auto dealer insurance policy?



Oakland Insurance is here to help you find the best coverage for your dealership's needs. We help auto dealers in Michigan find policies that meet your specific needs at an affordable rate.

Having a Question? Contact Us Today

If you have any questions about auto dealer insurance in Michigan or would like to learn more about how Oakland Insurance can help you find the best coverage for your dealership, don't hesitate to get in touch with us today. 



Our experienced agents are here to answer all of your questions and provide you with the resources you need to make an informed decision.