Motor vehicle dealers must carry auto dealer insurance in nearly every state, including Illinois. Before obtaining a dealer license, most states require proof of this insurance. The "Dealer Garage Insurance Policy" is crucial for protecting your vehicles during transport to and from auctions and safeguarding your customers while they test drive your cars. Additionally, this policy covers incidents like customer injuries on your lot. This comprehensive coverage is aptly named a garage policy because it protects both your "garage" and its immediate surroundings. Even if you have auto dealer insurance for another business, a specific dealer garage insurance policy is essential for customers driving your demonstration vehicles.
Depending on your state's requirements, you may need only a basic liability policy or a more comprehensive coverage. It's vital to check with your
state dealer license bureau to ensure you meet the minimum legal requirements in Illinois.
