Garage Liability Insurance for Used Car Dealers

Garage Liability Insurance for Used Car Dealers

Shield your used car dealership from financial risks with garage liability insurance. Discover coverage options, costs, and tips to safeguard your business.

What is Garage Liability Insurance?

Garage liability insurance is like a safety net for used car dealerships. It kicks in to help cover the costs if someone gets hurt or something gets damaged on the dealership’s property or while they’re taking care of a customer’s car.

This insurance is super important for used car dealers because it keeps them from going broke if they get hit with a lawsuit.

What does Garage Liability Insurance cover?


  1. Bodily Injury: If someone gets hurt on the dealership’s property or while their car is in the dealership’s care, this insurance helps pay for medical bills and other related costs.
  2. Property Damage: If something on the dealership’s property or a customer’s car gets damaged, this coverage helps pay for the repairs or replacement.
  3. Products and Completed Operations: Even after the dealership finishes working on a car, if something goes wrong because of their service, this insurance steps in to cover the damages.

How much does it cost?


The cost varies based on things like where the dealership is, how big it is, and its history of claims. But on average, dealerships usually pay between $1,000 and $5,000 each year for this insurance.

Frequently Asked Questions about this insurance for used car dealers


Do all used car dealerships need this insurance?

Absolutely. Every used car dealership should have this insurance because accidents and damages can happen, and it’s a way to stay financially safe.

How do I get a quote for this insurance?

Reach out to an insurance agent or broker. You can also compare quotes online from different insurance providers.

What should I look for in a policy?

Make sure the policy covers the specific risks your dealership might face. Also, check that the coverage limits are high enough to protect your business if a lawsuit comes your way.

Also Read: Does Car Insurance cover Non-Accident repairs?

Extra tips for used car dealerships


  1. Shop around for the best rates.
  2. Keep your policy updated.
  3. Review your policy regularly to make sure it still meets your needs.

Investing in garage liability insurance is a smart move for any used car dealership. It shields the business from financial disaster in case of a lawsuit. By understanding what the insurance covers and comparing quotes from different providers, dealerships can make sure they’ve got the right protection in place.

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