Start with these exposures
- Whether you take title or possession
- Auction pickups, deliveries and transport
- Retail, wholesale and brokerage activities
Coverage considerations
Buying and reselling vehicles, arranging purchases for a fee, taking title, holding deposits, storing inventory and transporting cars create different exposures. Selling to other dealers and selling to the public also involve different rules. “Broker” and “wholesaler” can have specific licensing meanings.
A business with no traditional retail lot can still have driving, custody, transaction and contractual exposures. If you hold inventory, discuss physical damage. If you hold vehicles owned by someone else, clarify that arrangement separately.
Review state licensing and bond rules for the actual category. A lower bond requirement for wholesalers in one state does not mean every state uses the same distinction. Dealer-plate eligibility and permitted use also need to be checked.
Coverage should fit the whole transaction, from purchase through delivery, including independent transporters and vehicles kept at auction or another business’s premises.
Compare the coverage and cost
Compare quotes for the same operations and coverage. Confirm the total policy cost, deductibles, payment terms and any exclusions affecting the way you do business.