Mandatory Used Car Dealers Insurance

There is a wide array of coverage when we talk about used car dealers insurance in Barrie Ontario. If you happen to be in this industry, you might want to get to know both mandatory and optional coverage for the dealership that you currently have. Naturally, used car dealers insurance is expensive since insurance companies don’t have the slightest clue on who will be test driving the vehicles.

In some cases, the liability coverage limits for used car dealers are at times significantly higher than those on the personal auto insurance. So if you want to make informed decisions regarding the insurance of your dealership, make sure that you know what are the different mandatory and optional coverage are. The first thing you need to consider is the garage liability.

This type of coverage provides protection for damages incurred during the maintenance and ownership of the garage. The basic garage liability provides coverage for the premises or the garage itself and auto accidents while the cars are on the service lots. You must check what the garage liabilities limits are in your area by searching it on credible websites online.

The next mandatory coverage for used car dealers Barrie Ontario has is the auto liability which essentially gives protection to you as the dealer in any case that you are facing lawsuits because of auto accidents. As mentioned before, the limits are dependent on which area you belong to and since you operate within Barrie Ontario you should check whether there are limits in your area of operation.

There is also a dealers open lot mandatory coverage for used car dealers in Barrie. This is the type of coverage for vehicles that you own. It provides protection in case of physical damage to the car and may include collision coverage and depending on the insurance company may provide other protection that may range from comprehensive to fire and theft.

Used car dealers in Barrie Ontario also have the coinsurance clause which is the percentage that will determine whether you are fully covered on a partial loss. Whatever your position is in the used car industry, it is important that you know the rules and regulations regarding the insurance policies so that you can protect yourself from further losses later on.