{"id":2588,"date":"2017-04-24T09:00:41","date_gmt":"2017-04-24T13:00:41","guid":{"rendered":"https:\/\/www.autoraptor.com\/?p=2588"},"modified":"2017-04-24T09:00:41","modified_gmt":"2017-04-24T13:00:41","slug":"auto-dealer-insurance-tips-save-dealership","status":"publish","type":"post","link":"https:\/\/www.autoraptor.com\/blog\/auto-dealer-insurance-tips-save-dealership\/","title":{"rendered":"3 Auto Dealer Insurance Tips to Save Your Dealership Money"},"content":{"rendered":"

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Saving money on costly auto dealer insurance is all about attention to detail<\/h2>\n

Running an auto dealership is fun and exciting, but you know the truth, too: being in business is expensive. Among your many business expenses<\/a>\u00a0\u2014from advertising to personnel, to keeping a roof over your head\u2014one of the most important is auto dealer insurance.<\/p>\n

Insurance is one of those necessary evils that you tout the importance of to your customers, but cringe when it\u2019s your turn to pay your monthly premiums or update your policies. Spending money every month on what could go wrong is a fact of owning a business with expensive inventory\u2014so it\u2019s time to deal with it, face the situation head-on, and learn how you can buy what you need in a cost-effective manner.<\/p>\n

How to get the best auto dealer insurance rates<\/h3>\n

1. Be clear about your aggregate deductible\u00a0\"auto<\/strong><\/p>\n

Most auto dealer insurance policies include aggregate limits, or a stipulation noting the most the insurer will pay for all covered losses during a specific period. This would be something you\u2019d have to deal with usually only if your vehicle inventory is damaged in a hail storm, hurricane, or tornado.<\/p>\n

Don\u2019t sign on the dotted line without thoroughly reading your policy, though. You need to know if your deductible applies per catastrophic event on a blanket basis over all your vehicle inventory (if you own more than one dealership), or if you have to pay the deductible individually at each dealership address. Save money and try to find a policy that will only make you pay that deductible once if you own multiple dealership locations.<\/p>\n

2. Be an organized, active participant in your auto dealer insurance\u00a0<\/strong><\/p>\n

Getting the right policy<\/a>\u00a0and proper coverage in order can be quite an exhausting process. When you’re done, you were probably beyond \"autorelieved, filed it away in some nondescript filing cabinet, and went on with your business. Your reaction is understandable, but being an active participant in your insurance is essential if you own a dealership.<\/p>\n

Go through your policy regularly with your agent, step-by-step, line-by-line. Make sure your premium is fair, the coverage is accurate, and know exactly what they\u2019re using to determine your rates. And when it comes to organizing, don\u2019t toss your insurance paperwork in a filing cabinet and forget about it.<\/p>\n

Color-code or label files, so you won\u2019t have trouble finding them when you need them. Scan every page they\u2019ve given you, so you don\u2019t only have physical copies, but readily available digital ones as well. That way, if you need to pull anything up quickly, you can find it easily on your computer. You can use the dealership\u2019s scanner, or download an app like Snapscan<\/a> or Scanner Pro<\/a> that lets you create PDFs easily from your smartphone.<\/p>\n

3. Buy Here Pay Here (BHPH) dealerships should think about collateral protection insurance<\/strong><\/p>\n

If you run a BHPH dealership<\/a>, you’re used to dealing with riskier customers, in every sense of the word. You probably require your \"autocustomers to carry full coverage auto insurance for the term of their loan, but BHPH customers can struggle to afford physical damage coverage and are likely to let it lapse. When that coverage lapses and damage occurs to one of your vehicles, that exposes you to a loss.<\/p>\n

Offering your BHPH customers collateral protection insurance as an alternative to physical damage coverage (which is more expensive) will save customers money, give you another revenue stream, and prevent additional risk. Collateral protection insurance protects a vehicle held as collateral for loans by lenders and it\u2019s a single interest insurance plan that will protect your dealership if the customers fail to insure a vehicle from physical damage.<\/p>\n

Invest time in creating the right auto dealer insurance package for your dealership<\/h3>\n

Properly insuring your dealership isn\u2019t something you can do on the computer in 15 minutes. Synch up with a dedicated insurance agent that will get to know you, your business, and the unique risks you face.<\/p>\n

They should speak with you about options like general liability, auto errors and omission, property\/equipment breakdown, workers\u2019 compensation, employment practices liability, excess liability, and more. Every type of coverage won\u2019t be right for you, but it\u2019s up to your insurance agentProperly insuring your dealership isn\u2019t something you can do on the computer in 15 minutes.Properly insuring your dealership isn\u2019t something you can do on the computer in 15 minutes.to be honest, work with you, and craft a portfolio of coverage that will keep your costs and risks low.<\/p>\n

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