Michigan Dealership Insurance: Essential Coverage for Auto Dealers

If you're looking for the best auto dealership insurance coverage in Michigan, look no further than Barbee Jackson Insurance. With a commitment to providing top-quality insurance solutions, competitive pricing, and unparalleled customer service, we are the best choice for dealership insurance

Michigan dealership insurance is a critical component for ensuring the safety and security of dealership operations. The State of Michigan requires dealerships to obtain liability insurance coverage to protect against potential losses and to comply with state regulations.

The State of Michigan Garage Liability Insurance Requirements 

Garage liability insurance is an important type of coverage for dealerships. This coverage provides protection against claims arising from the operation of the dealership, including claims related to the sale or service of vehicles, customer injuries, and property damage. Dealerships should carefully assess their specific insurance needs and risk profile to determine the appropriate level of coverage for their business.

The State of Michigan requires all dealerships to maintain no-fault insurance with limits of 20/40/10 that covers for “any vehicle” or “all vehicles owned”. 

State of Michigan - Dealer Manual 

Dealer Open Lot

Another important component of car dealership insurance is dealer open lot coverage. This type of insurance provides coverage for vehicles that are stored on dealership premises. Dealer open lot coverage protects against theft, fire, and other perils that may damage or destroy vehicles while they are stored on dealership property.

Dealer open lot coverage is particularly important for dealerships that store a large number of vehicles on their premises. The cost of replacing a stolen or damaged vehicle can be significant, and without dealer open lot coverage, dealerships would be left to bear the full cost of these losses.

Dealer Bond

In Michigan, dealerships must obtain a surety bond in order to obtain a license to operate. The amount of the bond required varies based on the type of dealership, but is typically between $10,000 and $25,000. The bond serves as a guarantee that the dealership will comply with all state regulations and will act in a responsible and ethical manner. 

The typical cost of this bond will be 1% of the bond amount. If you are needing a Used Car Bond the bond would be for $10,000 costing as low at $100 per year.

If a consumer makes a claim against a dealership, the bond can be used to cover the cost of the claim. For example, if a dealership is found to have violated state regulations, the bond can be used to pay any fines or penalties imposed by the state. The bond also provides consumers with a source of recourse if the dealership fails to fulfill its obligations.

In order to obtain a bond, dealerships must submit an application and pay a premium to a surety company. The surety company will then issue the bond, which must be filed with the state. Dealerships are required to maintain their bond in good standing throughout the life of their license.

Other Coverage Option Available 

• Commercial Building
• Workers Compensation
• Dealer E & O
• Cyber Liability 
  

Why Barbee Jackson Insurance?

Barbee Jackson Insurance offers competitive pricing and a wide range of insurance products, including garage liability insurance and dealer open lot coverage. We also provide access to a network of top insurance carriers, allowing us to provide dealerships with the best coverage options at the most competitive prices. Call us Today to get started with one of our licensed insurance agents (850) 389-2001