Dealer Insurance Guy

Dealer Insurance Guy








Motor Dealer Insurance Services

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Newsletter 2015

Dealer bonds

At a time when the California DMV is proposing raising the retail dealer bond requirement to $100,000 the dealer bond market has undergone serious losses. In order to mitigate their losses the surety companies have adopted much more stringent underwriting guidelines. As a result rates have skyrocketed and many dealers have had their bonds flat cancelled. Can you do anything about this? YES you can. You can shop your bond rates. Similar to the finance companies you shop to get your customers the best interest rate for their situation, surety companies all have different underwriting guidelines and are set up to accommodate the type of risk they prefer. We work with multiple bond companies so we are equipped to help you shop for your bond and save money.

 

I hope he had the right coverage and a sharp agent


Other than passenger car coverage

Do you sell vehicles other than passenger cars and light duty trucks? Do you occasionally take them in trade? RVs, streetbikes, trailers, medium duty and big trucks... Can these be included in your dealer insurance policy? Not all insurance companies will cover them. We have a carrier that covers all of these. You can put all of them on your dealer policy with Motor Dealer Services.

Can I put my dealership and repair shop on the same policy?

Not with all companies. Some companies that insure car dealers will not cover dealers that also perform repairs for the public. Most companies that insure repair shops will not cover shops that sell cars. Having two policies is almost always far more expensive than insuring both of these on one policy. We have a carrier that will help you save money by covering both of these on one policy.

Consignment Vehicles

Do you take vehicles on consignment? Are a lot of your vehicles on consignment? Are a small percentage of your vehicles on consignment? Do you know your insurance companie's guidelines regarding what is acceptable? Did you know that many carrier's policy language excludes coverage for dealers that have more than ten percent of their inventory on consignment? If a small dealer with nine cars has one vehicle on consignment he is not in compliance. With many carriers a dealer with twenty cars can not have three consigned vehicles on the lot and be in compliance. Is there way around this? Yes. We represent a carrier that allows up to ninety percent of dealer inventory to be consigned.


Is there information here that your agent didn't tell you?     Did it cost you money?      We hope not.

 

Written by: Dave Hoffman
Broker/Owner