Motor Dealer Services

Dealer Insurance News


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Where Did My Insurance Company Go?

In the first few months of 2014 State National Insurance, TOPA Insurance and Starr Indemnity all left the California / Arizona dealer insurance market. We hear that losses made it unprofitable for each of them to do business here. Did your insurance company disappear? We work with multiple companies to save you money. We shop your insurance based on your business model and your location to place you with the company with rates best for you.

Bond Rates Have Plummeted

Six years ago bond rates skyrocketed during the economic crisis. For the last couple of years rates have been coming down. Since January some companies have reached pre-disaster rates. Clicking this fully automated link will take you to our bond application. We shop multiple bond companies. We have cut many dealers bond rates in half. California and Arizona dealers click the link and save.

50% - 66% - 100%

If the flooring company only requires a percentage of my inventory to be insured, why would I want to cover it all? Because of your insurance policy's co-insurance clause. Part of the insurance company's formula to determine their risk and your rates, is the dealer's total inventory value. Although we do everything we can to save dealers money, we would never want to do anything that would cause a claim to be underpaid. Under declaring inventory amounts leads to claims being underpaid by the same percentage the inventory was under declared. Click this link and read 'underreporting money saver or suicide' to see a detailed explanation on our site.

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
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Bond Rates Are - Way Down

Dealer in business since 2007, and earlier, remember bond prices sky rocketed in 2008. Bond rates are finally on the way down. Since summer 2012 may bond companies have much lower rates. Many dealers are paying far less than they paid a year ago. This is across the board for all credit types. When your bond is up for renewal be sure to shop. We work with multiple companies. We can help you save money.

Insurance Review

Have you hired new employees since you wrote your policy? Do you have more inventory (or less inventory) then you did when you wrote your policy? Do you have limits that are unnecessarily high? Are you doing everything reasonable to keep your premium low while maintaining the proper coverage to avoid problems? A quick insurance review can make sure that you are saving every penny possible. Call us any time for an insurance review. We can usually do it on the spot.

Flooring Companies and the Right Inventory Coverage

Don't make this simple mistake. Flooring companies typically require that you have enough coverage to cover either 50% or 66% of your credit line (varies by company.) That is the flooring company's minimum requirement. The dealer insurance companies require that 100% of your inventory is covered. If 100% of inventory is not covered the insurance companies are allowed to underpay a claim by the same percentage the inventory was underreported. See our article "Underreporting Money Saver or Suicide?" in our 2013 newsletter for a detailed explanation.

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
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Impossible to Insure? No!

Do you sell salvage title vehicles? Have you been told that you can't get insurance? You can. We have a company that covers dealers that sell salvage title vehicles. We can get it covered for you. Are you new in business? Have you been told that you need three years in business to get covered? That's ridiculous. We can get you covered. Have you been told "No"? We can help. Have you been told that you can't put your personal cars on your dealer policy? With some companies this may be true. We have companies that allow you to put your personal cars on your dealer policy helping you save a small fortune.

Auto Rental Agency

Are you thinking about turning you unsold inventory into a profit center? Independent auto rental outlets have specialized insurance needs. Car dealer insurance alone does not cover everything a rental dealer needs. We have access to the coverage auto rental outlets need.

Bad Check

Nobody covers that... right? Sometimes. If you are given a check written on a closed account, or sell a car and identity fraud was used. There is coverage available. "False pretense / trick and device" is an option for exactly this. Coverage for this is actually very inexpensive.

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
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Garage Keeper's - I don't have a repair shop

The term "garage keepers" almost sounds like repair shop insurance. It's not. GKLL or "Garage Keepers Legal Liability" coverage is an option that covers a risk that almost all used car dealers are exposed to. GKLL covers vehicles in your care, custody and control that you don't own. It covers cars that you are driving to establish trade in value and vehicles that you are driving to determine if a customer's complaint about a sold vehicle is valid. Last it covers vehicles on consignment to you. Almost all car dealers drive cars before they buy them. Almost all dealers have customer complaints about vehicles from time to time. Some dealers take cars on consignment. This is a important, inexpensive, coverage that almost all dealers need.

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 carriers that covers all of these. You can put all of them on your dealer policy with Motor Dealer Services.

Comprehensive vs. Specified Perils

For dealers that want the most complete policy possible, with the least exposure possible, Comprehensive is the only way to go. I have seen quotes that list "comprehensive" on the proposal and then give a list of covered perils. Comprehensive is an "all risk" / "open perils" policy. It covers everything that is not on the exclusions list. Specified perils policies cover only the perils specified in the list. Typically the perils specified are: theft, wind, hail, aircraft, riot, vandalism, explosion and smoke. Here are some examples of things not covered by a specified perils policy. Tree limb falling on a vehicle, building collapse, sink hole, flood, etc. If you are looking for the most complete policy possible don't be mislead.

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