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In California, uninsured vehicles are not permitted on the roads, making it essential for dealers to obtain comprehensive insurance coverage. This insurance should cover various aspects of dealership operations, including “lot” inventory, unaccompanied test drives, errors and omissions, fire and theft for buildings and equipment, as well as liability and workers’ compensation. Additionally, dealers may opt for personal policies for their dealer-owned vehicles if their insurance provider offers this option. Ensuring proper insurance coverage protects both the dealership and its customers, maintaining compliance with state regulations.
Dealers Should Obtain Insurance to Cover:
Uninsured vehicles may not be driven on California roads. Dealers should obtain insurance to cover:
- “Lot” Inventory
- Unaccompanied Test Drives
- Errors & Omissions, False pretense, Truth in Lending etc.
- Fire & Theft for building and equipment
- Liability and Workers Compensation
Dealers may obtain personal policies or “plate insurance” for their dealer-owned vehicles and only their personal use -if- their insurance company provides that option.
