Used Car Insurance

Reader’s Question:

Is it practical to get used car lot insurance for my car dealer business? I am operating a small used car dealership business in our neighborhood, which, thankfully, earns a little more than the break-even.

Carl

Salem OR

From the business owners’ point of view, it might not be that attractive to get a used car lot insurance because it means additional item to their expense list. But the security and peace of mind you will get, knowing that, whatever happen to the used cars you are selling, you have an insurance company who will answer for the loss is something more valuable than money you spend on the insurance.

From the your customers’ point of view, having a used car lot insurance will give them an impression that you are one car dealer who cares a lot about his cars and products. Knowing that the used cars on display are being insured means the cars are being valued by the seller. As such, the buyer will feel confident that the car they are getting are well taken cared of. This is a big plus point, not only to your sales but also to your reputation. You will be regarded by your community as someone who values the cars he is selling. This will surely drive more customers to your shop.

Used car lot insurance is a bit tricky to deal with. If you are not much familiar with this insurance, then it is best that you consult an insurance broker that specializes in this kind. Brokers have connections to different insurance providers so they can offer you different insurance products to choose from.

Following are basic factors that can affect your insurance rate:

• If your car garage lot is open, which exposes your cars to damages caused by weather. So you might consider having a covered and closed garage to protect your cars from the harsh weather. This can lower your insurance rate and will preserve your cars’ good quality.
• The geography or the location of your car lot can affect your insurance rate. If theft incidents are high in your place, then you can get an additional premium to cover this risk. So having some anti-theft devices installed in your car lot can help in lowering the insurance premium.

  If your geographic location is prone to calamities like hurricane, earthquake or typhoon can also add cost to your insurance premium.

If the above factors are present in your car lot, the more you need to get insurance to protect your products.