If you own an auto dealership, then you know just how expensive your inventory is and understand the importance of protecting it. This is why car dealerships have so many different types of insurance to choose from. You can select options to protect the cars your mechanics are working on in the garage, the computers that your employees use, and even the building that houses the majority of the non-auto part of your business. There’s even a special insurance policy for the cars on your lot, called dealers open lot insurance.
Wondering what open lot insurance entails? And why is it necessary? Here’s what you need to know.
Protection During Test Drives
The best way to sell a car is by offering a test drive. The problem occurs when that test driven car ends up in an accident. Even the most careful of drivers can make a mistake that leaves a dent or scratch on the vehicle, or can be involved in a larger accident caused by someone else. Thankfully, you have insurance for that included in your dealers open lot policy.
Insurance to Pay for Weather-Related Damage
Having cars sitting on an open patch of asphalt leaves them exposed to the elements. It’s not like you have a choice, since a building large enough to hold them all would be an expensive headache. What happens when a hailstorm damages your auto inventory? Or a windstorm blows entire heavy tree branches onto them? Your dealers’ open lot insurance will make this a less expensive issue.
The Expensive Headache of Stolen Cars
Whether it’s one single car thief or an entire ring of them, losing part of your inventory can lead to a number of expenses. Once that car has been stolen, it could be wrecked, damaged, or never seen again. How can you make up for this loss? Luckily, your insurance policy can help a great deal.
Coverage for False Pretenses
What happens when someone lies to you about a vehicle? Or they come up with a story to gain access to a vehicle? There’s nothing worse than purchasing a used car from a customer as a trade in, only to find that the title isn’t as free and clear as they claim it to be. Since the odds of getting the customer back into the lot to clear things up are pretty slim, your dealers’ open lot insurance may cover the costs of taking care of that issue.
Another problem arises when someone misrepresents themselves in order to get a test drive. Sure, you can employ a number of safety precautions, but they might just not come back, leaving you to report the car stolen. Again, this is where your insurance kicks in.
Have Questions? Contact Charlotte Insurance
Want to learn more about dealer’s open lot insurance for your auto dealership? Contact Charlotte Insurance. Our knowledgeable agents can explore and explain all available options and put together the insurance coverage plan your business needs.