Auto Dealer Insurance in Tennessee

Common risks for used car dealers

• Hail or storm damage to inventory
• Test drive accidents
• Theft from the lot
• Errors in sales paperwork
• Customer injuries

Coverages used car dealers often consider

• Garage liability and garagekeepers Covers liability from your auto operations and damage to customers’ vehicles while in your care.
• Commercial property Covers your building (if you own it), equipment, furniture, and inventory after covered losses like fire or theft.
• Crime and employee dishonesty Covers theft of money or property by employees, and in some forms, fraud by outsiders.
• Professional liability (E&O) Covers claims that your advice, design, or professional service caused a client a financial loss.
• Surety bonds Guarantee you’ll meet license rules or finish a job. Some licenses and contracts require them.
• Workers’ compensation Pays medical bills and lost wages if an employee is hurt on the job, and includes employer’s liability.

Not every business needs every coverage. The right mix depends on your work, your contracts, and your budget. All coverage is subject to underwriting and the terms of the policy.

What a claim could look like

For example, imagine a hailstorm damages 20 cars on your lot in La Vergne. Dealer inventory coverage may help, subject to policy terms.

This is a hypothetical example for education only. Whether any claim is covered depends on the facts and your policy terms.

Tennessee rules to know

Licensing. If your work requires a state or local license or permit, check with the licensing board or office for any insurance or bonding rules. We can help you meet whatever they require.

Workers’ comp. Most Tennessee employers outside construction and coal mining must carry workers’ compensation once they have five or more employees, full- or part-time, per the Tennessee Department of Labor and Workforce Development. Even below that number, many owners choose to carry it.

We can review your requirements and help you shop workers’ compensation and the other coverages above with carriers that write used car dealers, subject to underwriting.

Certificates of insurance

Lenders and floor plan providers commonly require proof of coverage.

A certificate of insurance shows your coverage on the day it’s issued. If a contract asks for additional insured status or a waiver of subrogation, the policy usually needs an endorsement, not just a line on the certificate. Our certificate of insurance checklist walks through what to check.

What affects the cost

• The type of work you do and how it’s classified
• Annual revenue and payroll
• Number of employees and any subcontractors
• Where you work and the value of your equipment or property
• The limits and deductibles you choose
• Your claims history and years in business

We can’t promise a price ahead of time, but we can compare options and explain the trade-offs in plain English.

How Eric can help used car dealers

Shops and service businesses near I-24, I-40, and I-65, from Antioch and La Vergne to Lebanon and Gallatin, see heavy traffic and a lot of customer cars. As an independent agent affiliated with Hutsenpiller Insurance, Eric can review what you have, read your contract requirements with you, and help you shop options with more than one carrier. See how an independent agent works for you.

Related guides

• Automotive Business Insurance in Tennessee
• All business types we can help
• Business insurance in Middle Tennessee
• General liability insurance
• Business interruption insurance
• General liability vs. professional liability
• Small business insurance checklist (PDF)
• Certificate of insurance checklist (PDF)