Car Dealership Insurance Tips

Car Dealership Insurance Tips

Risks to car dealerships can take many forms, from an employee who cooks the books to theft of your automobile inventory. Many car dealerships use safety programs to reduce exposures to loss and in turn, save time and money. Here are a few car dealership insurance tips and basic elements of a safety program.

Automobile Key Control

  • Keys should be secured in a locked box located away from the general public.
  • There should be a limited number of master keys for the lockbox and these keys should be assigned to management personnel.
  • Management personnel should be accountable for the entire key inventory. Test Drive and Loaner Car Procedures
  • A formal policy should be in place for test drives and loaner vehicles.
  • Establish a chosen route for test drives.
  • Create general criteria for customers who wish to test drive an automobile. Consider the age of the drive, obtain proof of a valid driver’s license, credit card information and limit the test drive to 30 minutes.
  • A salesperson should accompany customers during test drives.
  • If courtesy cars/service loaners are provided, we recommend the use of a written agreement that sates the obligations and requirements for use of the courtesy car. Request proof of a valid drives license and proof of insurance.
  • It is also a good idea that you set a minimum age, such as 25 years for the use of a loaner vehicle. Establish a radius and duration of use of the service loaner and limit the use of the vehicle to that individual named on the agreement.
  • Pre loan and post loan auto inspections are recommended.
  • Remind test drive and service loaner uses that all occupants are required to use seat belts.

Car Dealership Insurance Tips on Employee Use of Dealer Demos and Customer Autos

  • Employees who operate dealer demos and/or customer vehicles must be at least 21 years of age and hold a valid drivers license.
  • Employees are subject to completing a practical road test.
  • Maintain a record of all employees motor vehicle records and dealer abstracts.
  • Dealer demos should not be used on vacations or road trips longer than 7 days.

Additional Safety Factors

  • For security reasons we recommend customer drop box be available for after hours.
  • All service loaners should be subject to a maintenance program.

For more car dealership insurance tips and/or information on the DealerSure insurance program, contact an ALIGNED Insurance Advocate at 604-817-7170

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