Car Dealership Insurance
Car dealerships face risks linked to stock vehicles, customer visits, test drives, premises, employees, sales advice, finance discussions, warranties, vehicle preparation, and road risks. A single claim can affect your finances, reputation, and ability to keep trading.
Quote Monkey can help car dealerships request a specialist broker referral for cover such as road risks, stock, premises, public liability, products liability, professional indemnity, employers' liability, business interruption, money, tools, and legal expenses.
Referral enquiries may be reviewed by a specialist insurance broker, subject to underwriting criteria, insurer acceptance, terms and conditions.
Specialist Referral Support for Car Dealerships
Car dealership insurance can be more involved than standard business cover because dealerships often need protection for vehicles on the road, vehicle stock, showroom premises, customers on site, employees, sales processes, and vehicles being demonstrated, collected, delivered, or moved.
Whether you sell new cars, used cars, prestige vehicles, commercial vehicles, classics, or operate from a forecourt, showroom, yard, or home-based setup, a specialist broker may be able to review your dealership and help identify suitable cover options.
Common Insurance Sections for Car Dealerships
Road Risks Insurance
Road risks insurance may cover vehicles connected to your dealership while being driven on public roads. This could include stock vehicles, demonstrators, customer part-exchange vehicles, vehicles being collected or delivered, and cars used for test drives, depending on the policy wording.
Stock Insurance
Stock insurance may help protect vehicles held for sale against insured risks such as theft, fire, malicious damage, accidental damage, or other covered events. This can be especially important where multiple vehicles are stored on a forecourt, yard, or showroom site.
Public Liability Insurance
Public liability insurance may help protect your dealership if a customer, visitor, supplier, or member of the public is injured or their property is damaged because of your business activities or premises.
Products Liability Insurance
Products liability insurance may help protect your dealership if a vehicle, part, accessory, or product you sell, supply, or fit causes injury or property damage. This may be relevant where vehicles are sold with accessories, replacement parts, preparation work, or additional products.
Professional Indemnity Insurance
Professional indemnity insurance may help protect your dealership if a customer claims they suffered financial loss because of professional advice, vehicle sourcing, valuations, finance-related guidance, inspection reports, warranty advice, or specialist recommendations.
Employers' Liability Insurance
If you employ sales staff, valeters, drivers, admin staff, technicians, apprentices, or temporary workers, employers' liability insurance may be legally required. It can help protect your business if someone working under your direction is injured or becomes ill because of their work.
Who May Need Car Dealership Insurance?
Car dealership insurance may be suitable for a range of vehicle sales businesses, including:
New car dealerships
Used car dealerships
Part-time car traders
Prestige and performance car dealers
Classic car dealers
Commercial vehicle dealers
Online vehicle sales businesses
Forecourt and showroom-based dealerships
Home-based vehicle traders
Vehicle sourcing businesses
Car supermarkets and multi-site dealers
Dealerships offering test drives, collection, or delivery
Test Drives and Demonstration Vehicle Risks
Car dealerships often need cover for test drives, demonstration vehicles, collections, deliveries, and moving stock between sites. A broker may ask who drives vehicles, whether customers are allowed to test drive, driver age limits, vehicle values, licence checks, deposits, accompaniment, and security procedures.
Test drive and demonstration cover can vary between insurers, so it is important that your policy accurately reflects how vehicles are used and who is allowed to drive them.
Premises, Stock, Money and Business Interruption
Car dealerships may need cover for showroom buildings, offices, forecourts, contents, stock vehicles, signage, valeting equipment, keys, documents, money, and business interruption following an insured event.
Businesses operating from fixed premises, yards, showrooms, or multi-site locations may need broader combined motor trade insurance rather than road risks alone. A specialist broker can review whether buildings, contents, stock, money, legal expenses, and business interruption should be included.
Products and PI Risk Information
A specialist broker may ask whether your dealership sells vehicles with accessories, replacement parts, preparation work, modifications, warranties, service packages, finance introductions, vehicle sourcing, or written reports.
Products liability may be relevant where a vehicle or product supplied by the dealership causes injury or damage. Professional indemnity may be relevant where you provide paid advice, valuations, sourcing recommendations, inspection reports, finance-related guidance, warranty advice, or other specialist services where a customer could allege financial loss.
Information a Specialist Broker May Ask For
To review a car dealership insurance referral, a broker may ask for:
Dealership activities and motor trade experience
Whether the business is full-time or part-time
Trading address, premises type, and security details
Driver names, ages, licences, and claims history
Maximum vehicle values and total stock value
Whether test drives, demonstrations, collections, or deliveries are offered
Whether vehicles are kept indoors, outdoors, or across multiple sites
Annual turnover and number of vehicles sold
Whether employees, valeters, drivers, or casual workers are used
Whether finance, warranties, valuations, or vehicle sourcing advice are provided
What May Not Be Covered
Cover will depend on the insurer, policy wording, declared activities, vehicle types, driver details, exclusions, and conditions. Common restricted or excluded areas may include:
Undeclared dealership or motor trade activities
Drivers not named, accepted, or meeting policy criteria
Vehicles above agreed values or outside accepted categories
Customer test drives where not declared or accepted
Vehicles stored at undeclared locations
Racing, track use, competition, or performance use unless specifically agreed
Faulty workmanship itself, unless a specific extension applies
Professional advice claims unless professional indemnity cover is arranged
Employee injury claims unless employers' liability cover is in place
Always check the full policy wording, schedule, exclusions, endorsements, and conditions before relying on cover.
Request a Specialist Broker Referral
If you need car dealership insurance reviewed by a specialist broker, you can submit details of your dealership, vehicles, drivers, premises, stock, employees, and required cover.
Referral enquiries may be reviewed by a specialist insurance broker, subject to underwriting criteria, insurer acceptance, terms and conditions.