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Newsletter 2011

Fire & Theft vs. Comprehensive

Fire & Theft coverage can be a money saving option for dealers that want an alternative to comprehensive coverage. If you are concerned about auto accidents and stolen vehicles but you are not concerned about other risks, this option can be a big money saver. The most common deductible for vehicle physical damage on a dealer policy is $1,000. Typically damage done by vandalism to a vehicle is not over $1,000. (With a broken window at $200 to replace and a stereo at $250 to $700 – the $1,000 deductible has not been met). So, typically, vandalism coverage is paid for although very few claims are turned in

 

I hope he had the right coverage and a sharp agent


No Fencing

Have you been told that you can’t get inventory coverage if you don’t have a fenced area to keep your cars in at night? With some companies this may be true, but, not with all of them. If you do business in an office, home or just don’t have a fence around your lot, we have an insurer for you.

Rental Car Insurance

Will my dealer insurance cover me when renting a car? If you are a sole proprietor your liability coverage will go with you. Your physical damage coverage is for inventory so it will not cover the rental car. Your Garage Keeper’s Legal Liability is for cars in your care, custody and control… but when renting a car you are not a “garage keeper.” So that won’t cover you either. There is something that will cover you. Your Visa/MasterCard preferred card benefits. Be sure to read the summary of benefits that came with your card before renting a car to see what coverage your bank has made available to you at no charge. Typically your preferred card will cover CDW (Collision Deductible Waiver.) Normally it will not cover loss of use, supplemental liability, personal accident coverage (medical for you and your passengers) or personal effects coverage. For people that are only interested in the collision deductible and saving money renting with your preferred card can save you money. To take advantage of this free coverage, rent the vehicle using the card with the benefit described here and decline the CDW. This coverage varies from bank to bank and in some cases from card to card within a bank. Be sure the read your summary of benefits before using this coverage. If you didn’t keep your benefits summary you can probably find it on the card issuer’s website or call the 800 number on the card

Selling on the Internet?

Most dealers advertise on the internet. Auto trader, Cars.com, Craig’s List are a few of a car dealers best friends. This is advertising, not selling. Some dealers “sell” cars on the internet. Some dealers sell cars on Ebay Motors (and the like) to people that have never seen them, receive money in an escrow account and then ship them. Is this OK with all dealer insurance companies? No. Some dealer insurance company’s will not cover a dealer that does business this way. Some do not exclude this as long as the dealer follows certain guidelines. If the dealer arranges transportation for the buyer, then the transporter is the dealer’s agent. The vehicle is the dealer’s property until physical delivery is taken by the buyer. If the transporter has an expensive accident and doesn’t have adequate coverage, the dealer is left holding the bag… or at least part of it. If the dealer has the buyer arrange for transportation, the transporter is the buyer’s agent. Once the vehicle is loaded on the transporter, delivery has been taken by the customer. If the transporter has an accident, the problem is between the transporter and the buyer.


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