Vehicle Dealers Open Lot-Garage Physical Damage Part III

This is the last in a 3 part series about insurance for vehicle dealers. Many of the elements are the same for other garage related businesses such as repair shops. Here is Part II, and Part I.

In addition to Dealers Open Lot Insurance which covers vehicles you own what about vehicles you do not own?   Garagekeepers Insurance provides coverage for most nonowned vehicles.  This is not in any way to be confused with Dealers Open lot insurance.  It is a different coverage and does not provide any insurance coverage for inventory autos.  And, with most dealer insurance policies, it does not cover consigned autos.

This coverage is written on dealer insurance to cover a dealer who has a customer car for some reason and a covered event happens while the dealer has the customer vehicle in his care, custody or control. Examples might be that the dealer is test driving and has not purchased the vehicle yet.  Or he decides to put tires on the car the week after it is sold to a customer.  Or it might mean that the dealer does some repair or service work and he has cars from customers on the lot.  In these examples the dealer could damage a vehicle belonging to a customer.  Since these are not owned vehicles, they would not be covered by Dealers Open Lot insurance.

It is also important to understand if you carry theft coverage what kind do you have.  Some policies require that your vehicles be inside a building or inside a fenced area in order to have theft coverage?  What about false pretense or trick and device?  If you give the keys to a customer and tell him to take a drive and he fails to return the vehicle, is this theft or is it “trick and device?  Most policies would require an endorsement to your insurance policy to provide for “false pretense”?

Every insurance policy is different.  And each insurance company can write insurance coverage in different combinations.  Know what you have.  It doesn’t help after a loss has already occurred to say, “Well, I meant for it to be another way” or “I thought I had that”. What is written in the insurance policy is what you have and how your claim will be settled.

This article is the final part in this business series – To see part I of this series please click here. To see part II of this series please click here.

About Larry Hecht
Hecht and Hecht has been writing garage insurance for over 30 yrs. We tailor our insurance products to individual dealer needs. We can be reached by email or contact Evelyn Hecht direct at 503-542-1131 (800-609-0979 or Larry 503-860-3224 (cell).

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