Many people may not understand everything that is involved with being a car dealer. There are more expenses and details that need to be covered than the average consumer is aware of. One particular thing that the everyday person might not consider is the necessity of car dealer insurance.
Car dealer insurance is an absolute must-have for any car dealer, whether they deal in new cars or used cars. One thing that most people wouldn’t think about is that car dealer insurance is not the same as regular automobile insurance. It is more expensive and covers more things. A normal auto insurance policy will vary in price depending on who will be driving the vehicle. If you are a good driver with a clean record, you are more likely to have good rates. On the other hand, if you are a poor driver, your rates will be higher, because you are a greater liability to the insurance company.
Car dealer insurance cannot be priced out in the same manner as a standard auto insurance policy. The main reason for this is quite simply that the insurance company has no way of knowing who will be driving the cars. There will be some good drivers, to be sure, but there will also surely be some very poor drivers. The insurance company has to make sure they are covered no matter what type of driver is behind the wheel.