Wondering How to Save on Used Car Dealership Insurance in Illinois?
Part of running and managing your used car dealership involves a good amount of responsibility and making wise financial decisions. One of these decisions that is made once a year is your garage liability insurance policy for your auto dealership. Besides what seems like endless business expenses, insurance is usually at the top of the list.
Insured ASAP is a leading provider of small business insurance and specializes in garage liability and physical damage / open lot coverage for auto dealers in Chicago, Joliet, Aurora and throughout Illinois, Indiana and Michigan.
In this article, we have highlighted 5 key ways below to save money on your auto dealers insurance policy.
1. SAFETY & INSPECTIONS.
Insurance carriers usually perform two inspections to “check-out” your business and operations. A virtual inspection is done with public records and the use of the internet. Websites, area news, maps, etc. are looked into to determine hazards that may stand out in the underwriting process.
After binding coverage, an inspector schedules a time to visit your auto dealership to determine hazards, if any, to your business.
It is a good idea to maintain a clean and safe lot when applying for an insurance quote. Inspectors will verify things such as structural damage, fire protection, fencing, and more. An agent will help you prepare prior to inspection.
2. HISTORY REPEATS ITSELF.
Insurance premiums are sometimes based on the belief that history repeats itself. Now how does this affect an auto dealer?
In a quote application, insurance carriers request MVR, or history of your motor vehicle record, details of owner(s) and drivers. As a responsible operator of a used car dealership, it is up to the owner to verify all employee driving records prior to hire, as well as maintain his/her own driving record as well.
Undisclosed ticket or accidents on the application will surface after the bind, and the policy premium will be surcharged. Besides traffic records, your credit history will be used to determine your insurance rates. This is more commonly found when applying for an auto dealers bond.
If high premiums are coming from an employee’s bad driving record, it may be time to weigh out the pros and cons. Good news is, if an employee or two with undesirable records do not drive vehicles, you can opt to exclude them from coverage.
Be cautious and note that if an excluded operator does get behind the wheel, he/she will not be covered in an auto accident and the claim will likely be denied.
3. PACKAGED POLICIES.
Packaging up your commercial policies in one usually lowers the overall premium than that of separate policies. A business owners policy, or BOP, may be available to used auto dealers with more than just a garage liability insurance policy with or without physical damage coverage.
If your auto dealership owns the commercial property it does business out of, or contents and office equipment or furniture, it would be wise to bundle those coverages with the garage liability insurance policy to save.
4. CONSIDER YOUR DEDUCTIBLE.
By increasing your coverage deductible, you decrease the amount of money the insurance company pays and are therefore charged a lower insurance premium. Deductibles can make a significant difference in premium if your auto dealers insurance includes open lot or physical damage coverage.
If your business can afford to pay an increased deductible out-of-pocket, odds are this may be an efficient way to save on your auto dealers insurance.
5. CONSULT WITH AN AGENT.
If you’re stuck dealing with an (800) number or out-of-state agent, you may be out of luck in this category. A local insurance agent can help and give you some advice of coverages you may or may not need for your auto dealers insurance.
An independent agent, like Insured ASAP Insurance Agency, represents multiple insurance carriers, so he/she can quote with a variety of carriers to obtain an affordable insurance quote with coverages for your unique used car dealership.