Dealer TopicsDealer Topics 09
Not quite stolen vehicles
If a customer tricks you into
voluntarily giving him the keys to a car, he leaves and you never see him again,
can you report it stolen to the police? Can you turn in a stolen vehicle claim
with your insurance company? In both cases, NO. A crime has obviously been
committed. But that crime is not Grand Theft Auto. It is embezzlement. Is
there a way to insure against this? YES. “Trick and Device/False Pretense”
coverage can indemnify you from this type of loss. Not all insurers off this
coverage. We have an insurer that does.
Title Problems – Mileage Problems
If you sell a car in good
faith, your title says 45,000 miles and the customer is issued a title that says
“True Miles Unknown” or “Mileage Exceeds Mechanical Limits” and your customer
sues you, will your insurer defend you in court and pay damages? What about
branded titles? Your title is clean the customer gets a title branded “Salvage”
or “Flood” etc. If you are sued will your insurer defend you and pay damages?
you have Errors and Omissions for Title, Mileage and Truth in Lending coverage
the answer is yes.
Is my tow dolly or tow truck covered?
If you list it as a “scheduled
vehicle” it’s covered and so is your vehicle sitting on top of it. Does this
coverage extend to vehicles I tow “for hire?” NO. This coverage excludes tow
for hire. It is only available for dealers transporting there own inventory.
Are cars I take on consignment covered?
Maybe. They are not covered by
“dealers open lot/inventory” coverage. Consignment is not considered inventory
by the insurance companies. There is coverage available. GKLL – Garage Keepers
Legal Liability covers vehicles in your care, custody and control that you don’t
own. It also covers vehicles that you are driving to establish trade in value
and vehicles that you are driving to determine if a customer’s compliant about a
sold vehicle is valid. In addition, dollar for dollar this coverage is less
expensive than inventory coverage.
Is there information here that your agent didn't tell you? Did
it cost you money? We hope not.
Written by: Dave Hoffman
License CA: 0D87197