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Car Dealership Insurance

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Car Dealership Insurance: Free Online Quotes

Did you know that as of 2023, there are 4,480 new car dealer businesses in Canada? New car dealerships have different insurance needs from other area businesses. In addition to standard liability insurance that would cover a customer should they slip on your showroom floor and property insurance that would cover fire or vandalism, car dealerships also need to be protected should a customer get into an accident out on the road, test driving one of your vehicles.

In addition to the damage to your inventory, your car dealership needs to be protected against the customer’s potential injuries and any damage he or she might inflict on people or property while in one of your cars. However, these aren’t the only types of insurance your auto dealership is likely to need.

Note: we can only insure new car dealerships, if you sell used cars we will be unable to help you.

Types of Car & Auto Dealership Insurance Coverage

Commercial Building Insurance:

Commercial building insurance is a fundamental component of any auto dealership’s business risk management strategy. This insurance provides crucial coverage for the physical structure of the dealership premises, safeguarding against potential financial losses resulting from unforeseen events.

Commercial building insurance provides coverage for damages caused by covered perils, including fire, vandalism, theft, natural disasters, and other potential hazards. A comprehensive commercial building insurance policy should cover the building’s structure, walls, roof, flooring, and permanent fixtures. It should also include coverage for attached structures, such as carports or garages.

Building Contents Coverage:

Apart from coverage for the physical structure, auto dealerships also need insurance coverage for the valuable assets contained within the building. Building contents coverage is designed to safeguard inventory, office equipment, furniture, and other valuable items.

Building contents coverage is essential to protect your dealership’s assets from a wide range of risks, including theft, fire, water damage, and more. Without adequate coverage, the dealership could face severe financial setbacks in the event of a loss.

Garage Policy:

Auto dealerships have specific insurance needs that go beyond standard commercial policies. A garage policy is a specialized insurance package tailored to meet the unique requirements of auto-related businesses, especially since auto dealers face a large number of motor vehicle dealer-specific industry regulations. A garage policy is a comprehensive insurance package that combines various coverages to protect your dealership against a wide array of risks. It typically includes garage liability coverage, garage keepers liability coverage, and dealer open lot coverage.

Commercial General Liability:

As with any business, auto dealerships face potential liability risks during their day-to-day operations. General business liability coverage plays a crucial role in safeguarding the dealership against various liability claims. General business liability coverage protects the dealership from financial losses resulting from third-party claims for bodily injury, property damage, and advertising injuries.

Owned Auto:

Auto dealerships often have a fleet of owned vehicles, including company cars and demonstrator vehicles used for test drives. Ensuring adequate insurance coverage for these vehicles is crucial. Owned auto insurance provides coverage for the dealership’s fleet of vehicles, protecting it against damages, accidents, and theft.

 

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McDougall Auto Dealership Insurance Brokers

If you’re like most business owners, you don’t want to spend a lot of time and energy on managing your insurance portfolio. That’s where McDougall Insurance can help. As your insurance partner, our insurance brokers can monitor your changing insurance needs so that you always have the coverage you need without paying for things you don’t need.

Click the button for a free auto/car dealership insurance quote Ontario car dealerships can trust. Or contact us with any questions you may have regarding our car and auto dealership insurance policies. We’ve been helping area businesses like yours for decades.

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Auto Dealer Insurance Options

Each car dealership is unique. The size of the business, the kinds of vehicles it sells, its office spaces, and so on, may vary. As such, each dealership needs insurance coverage unique to its own set of needs. There are many different coverage options for auto dealerships, and your business may need some of them, or all. McDougall Insurance’s job as a commercial car dealership insurance broker is to help you determine just what coverage you require to ensure reliable protection against the unforeseen. Some important aspects to consider when choosing your insurance policy include the following:

Special Hazards

These are hazards that are not covered under your basic insurance product. Hazards such as earthquakes, flood, hail, and sewer back up are all risks that can be addressed, depending on the insurer. Some insurers may not offer special coverage to high-risk areas. If your dealership is built on a floodplain, for example, it may not be eligible for flood insurance. Work with a broker to determine what special hazards your business may need to have coverage for.

Deductibles

Your deductible is the amount your business would pay upon filing a claim. The amount you choose can directly influence your premiums. Raising your deductible can qualify you for lower premiums, but you will pay more if a loss occurs. McDougall’s advisors can help you select an amount that is reasonable according to the amount of risk you’re willing to take on.

Umbrella Insurance

Umbrella insurance is a policy designed to provide protection against catastrophic losses. It fills in any gaps in coverage and is generally written over primary liability policies, such as the business auto policy. This can be especially handy with larger car dealerships that may offer extra services, like shuttle services, in-house maintenance, oil changes, and more.

Business Interruption

This type of insurance covers loss of income suffered by a business when damage to its premises by a covered loss causes a slowdown or suspension of operations.

Pollution Liability

This covers clean-up expenses when a pollution incident arises from the operation of your business.

The Best Car Dealer Insurance in Eastern Ontario with McDougall’s Dealership Insurance Brokers

When you need to purchase a vehicle, you go to a recognized and licensed dealer because you know you will get the best deal and the best product to fit your needs. An experienced and trained insurance expert can find you the best coverage options at the lowest rates. This is especially true when you choose to do business with a company like McDougall Insurance & Financial. And, with global factors like inflation impacting insurance rates, it’s now more crucial than ever to have a professional at your side getting you the best cost for your coverage so you can keep your business expenses low.

We do not represent just one insurance company. We are an insurance brokerage that does business with many top insurers. After you contact one of our specialists to discuss your insurance needs, your job is basically done. Your insurance specialist crunches all the numbers and compares policies and premiums from several top providers. This ensures that you get exactly what you need for the best price.


FAQ’s for Auto Dealership Insurance

Auto dealerships in Ontario typically require various insurance coverages to protect their assets and operations and protect them against liability. Common insurance types include commercial building insurance, building contents coverage, garage policy (including garage liability and garage keepers liability), general business liability coverage, owned auto insurance, and commercial general liability (CGL) insurance.  

Commercial building insurance is generally not mandated by law in Ontario. However, it is highly recommended for auto dealerships, as it provides essential protection for the physical structure of the dealership premises. Lenders may also require this coverage if the dealership is financed through a mortgage.

Garage keepers liability insurance covers customer vehicles left in the dealership’s care for service, repairs, or storage. It protects the dealership in case of damage or theft to the customer’s vehicle while it is under the dealership’s responsibility.

Customer test drives are typically covered under the dealership’s garage policy. Garage liability insurance included in the garage policy may offer protection in case of bodily injury or property damage that may occur during test drives.

What Our Customers Are Saying

Eric Irvine

Been dealing with McDougall/Brister Group Winchester for at least the past 5 years and the service has been excellent. Our broker William Barclay is very helpful and helped us save money with the best possible insurance quotes and goes above and beyond with his customer service!

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