Used Car Dealers: Garage Liability vs. Garage Keepers Coverage
When you run a used car dealership, protecting your business goes far beyond simply locking the doors at night. Between customer vehicles, employee operations, and test drives, your business faces unique risks every day. At Garage Keepers Insurance, we specialize in helping used auto dealers find the right coverage that protects their assets while keeping insurance costs manageable.
Two of the most important types of insurance for used car dealers are Garage Liability Insurance and Garage Keepers Insurance. While these coverages sound similar, they serve very different purposes. In this blog post, we’ll break down the differences, explain how each applies to your dealership, and guide you toward the best auto insurance deals available for your business.
Understanding Garage Liability Insurance
Garage Liability Insurance is designed to cover the general liability risks that arise in the daily operations of your dealership. For example:
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A customer slips and falls in your showroom.
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An employee accidentally damages a third party’s property.
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Your business faces a lawsuit for advertising liability.
This type of auto dealer liability insurance is a must-have for meeting auto dealer insurance requirements in most states. It protects your dealership from lawsuits, medical bills, and other expenses related to customer or third-party injuries caused by your operations.
Garage Liability is not just a legal requirement—it’s also a smart financial safeguard. Without it, your dealership could be responsible for tens of thousands of dollars in legal costs and settlements.
What is Garage Keepers Insurance?
While Garage Liability protects against liability from business operations, Garage Keepers Insurance specifically protects customer vehicles left in your care, custody, or control. This is particularly important for used car auto dealer insurance because customers often leave vehicles with your business for trade-in evaluations, repairs, or detailing.
For example:
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A customer’s car is damaged while parked on your lot.
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An employee accidentally backs another vehicle into a customer’s car.
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Theft, vandalism, or fire damages vehicles under your care.
In all of these scenarios, Garage Keepers Insurance ensures that you’re not paying out-of-pocket for the loss.
Why Used Car Dealers Need Both Coverages
As a dealership owner, it’s easy to assume one type of policy is enough, but that’s rarely the case. Used auto dealer insurance requires a comprehensive package that includes both Garage Liability and Garage Keepers coverage.
Here’s why:
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Garage Liability protects your dealership against lawsuits, injuries, and damages to third parties.
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Garage Keepers Insurance protects customer vehicles under your control.
Together, they provide complete protection for your business, employees, and customers. Without both, your dealership could be exposed to significant financial risks.
Auto Dealer Insurance Coverage: What’s Included?
When you work with Garage Keepers Insurance, we tailor your auto dealer insurance coverage to meet your exact needs. Coverage options may include:
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General Liability Insurance – Basic protection against injury and property damage claims.
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Garage Keepers Insurance – Coverage for customer vehicles.
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Property Insurance – Protects your building, lot, and business property.
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Workers’ Compensation – Required if you have employees, covering injuries and lost wages.
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Auto Dealer Bond Insurance – Ensures compliance with state licensing requirements.
Whether you’re looking for independent used auto dealer insurance or a program for a larger dealership, we provide flexible solutions.
How Much Does Auto Dealer Insurance Cost?
The auto dealer insurance cost varies depending on several factors:
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Location of your dealership (e.g., Florida auto dealer insurance may cost differently than coverage in other states).
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Size of your business and number of employees.
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Value of customer vehicles in your care.
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Claims history and safety practices.
We work with top auto dealer insurance companies to get you competitive pricing and the best deal for auto insurance without sacrificing coverage.
Finding the Best Auto Insurance Deals for Used Car Dealers
We understand that dealership owners want affordable protection. That’s why Garage Keepers Insurance partners with leading carriers, including State Farm Auto Insurance bundle deals, to provide cost-effective options.
Whether you’re searching for:
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Auto insurance deals for your business,
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The best auto insurance deal from a trusted auto dealer insurance company, or
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Cheap auto insurance deals for used auto dealers in Chicago or Florida,
…we can help you find the best deal on auto insurance that meets both budget and compliance requirements.
Why Choose Garage Keepers Insurance?
At Garage Keepers Insurance, we go beyond selling policies—we build insurance programs that keep your business running smoothly. Here’s what sets us apart:
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Access to top auto dealer insurance companies with proven track records.
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Expertise in used auto dealer insurance and used car auto dealer insurance programs.
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Competitive pricing, helping you secure the best deal auto insurance available.
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Tailored packages that meet all auto dealer insurance requirements.
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Fast, accurate auto dealer insurance quotes so you can plan your budget with confidence.
Whether you need independent auto dealer insurance, a Florida auto dealer insurance quote, or specialized protection for high-volume used car sales, we have you covered.
Final Thoughts: Choosing the Right Coverage
The choice between Garage Liability Insurance and Garage Keepers Insurance isn’t an “either/or” decision—it’s about combining both for complete protection. Used car dealerships face a wide range of risks, from customer injuries to vehicle damages. Having both coverages ensures your business is fully protected from unexpected losses.
At Garage Keepers Insurance, we help used car dealers find the best auto insurance deals, meet all state requirements, and secure coverage tailored to their unique needs. Whether you’re a small independent dealer or a larger operation, we’ll work with the best auto dealer insurance companies to build a policy that fits your business.