Car Dealership Insurance

Type: article

The need for insurance in a business such as a car dealership is a necessity. Your stock holdings are worth accumulated amounts running into the millions and any loss is a substantial one. Car dealership operations make use of computerised equipment which in itself is costly to replace if stolen or damaged. In instances where a dealership has a service department, the tools and equipment are specialised and worth a pretty penny. Besides all this, the number of people driving a variety of cars, both customer vehicles, and company ones, warrants protection against accidental damage and the possibility of death in the event.

Liability Coverage

This kind of insurance system is in place to protect the purchaser. It is often referred to as risk financing. Liability coverage is necessitated in the event of third-party claims against the insured. The claims which are paid out are generally not paid to the insured party but rather the third party who has incurred the loss. It is a requirement to have liability coverage in place when purchasing a vehicle. There are instances where an accident causes total destruction of a vehicle for which the insured is still liable. In this instance, the cover will ensure that the monies are paid to the dealership.

Comprehensive Coverage

Comprehensive coverage is in place as protection for the insured in the instance that the vehicle requires repairs or replacement where the damage or loss is not the direct result of an accident. Many of these policies exempt damage and loss that are caused by natural disasters, however, in some cases they are allowed for. It is commonplace for co-payments to be made when claims are processed. This coverage is a necessity when purchasing a vehicle. Money owing to the financier must be settled in the instance of irreparable damages or losses. Payments toward this insurance are as a monthly premium.

Collision Coverage

Collision coverage is in place as protection for the insured in the event that a vehicle is damaged or requires replacement as a direct result of an accident, regardless of who caused the accident. These premium are normally paid on a monthly basis. While this is important for the buyer of any vehicle in order to safeguard against paying for a car you may no longer have, it is also vital for car dealerships themselves. Many of the staff of these dealerships drive company vehicles as well as those of customers. Assure yourself against claims relating to your customer vehicles.

Medical Payment Cover

Medical payment cover is often included in auto insurance policies. The cover provides for medical and funeral coverage in the event of an auto accident. The assurance is usually extended to the policyholder, the passengers and the family members who may be driving in the insured vehicle at the time of the accident. The cover is in place regardless of who the cause of the accident may have been. Offered as an optional addition to your vehicle insurance policy and definitely one worth considering. Medical and funeral expenses are costly, the addition to your premium monthly is worth it.