Best Business Insurance for Car Dealerships in 2024 (Top 10 Companies)
Progressive, State Farm, and Nationwide are the leading providers for the best business insurance for car dealerships with competitive rates starting at $340/month. These top providers offer tailored coverage specifically designed to address the unique needs and challenges faced by car dealerships.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: May 7, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: May 7, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Progressive State Farm and Nationwide emerges as the top pick providers when it comes to securing the best business insurance for car dealerships, offering competitive rates and a range of discounts.
These companies excels in providing tailored coverage to meet the specific needs of car dealerships, ensuring comprehensive protection against unforeseen risks.
Our Top 10 Company Picks: Best Business Insurance for Car Dealerships
| Company | Rank | Multi-Policy Discount | Experienced Business Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 8% | Comprehensive Coverage | Progressive |
 | #2 | 15% | 10% | Personalized Service | State Farm |
 | #3 | 10% | 10% | Customizable Policies | Nationwide |
 | #4 | 15% | 8% | Reputation & Trust | Allstate |
 | #5 | 10% | 10% | Specialized Coverage | Farmers |
 | #6 | 8% | 8% | Risk Management | Travelers |
 | #7 | 12% | 5% | Global Reach | Liberty Mutual |
 | #8 | 10% | 12% | Industry Expertise | The Hartford |
 | #9 | 15% | 10% | High-Value Coverage | Chubb |
 | #10 | 12% | 8% | Specialized Expertise | CNA |
With their expertise in the industry and commitment to customer satisfaction, these companies stand out as the go-to choices for safeguarding your car dealership’s assets and operations.
Start comparing affordable insurance options by entering your ZIP code above into our free quote comparison tool today.
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#1 – Progressive: Top Overall Pick
Pros
- Comprehensive Coverage: Progressive offers extensive coverage, ensuring that various aspects of owning a car dealership are protected.
- Multi-Policy Discount: With a 10% discount, bundling different policies can result in significant cost savings.
- Reputation: Progressive insurance review & ratings showcase the company’s esteemed status, evident through favorable customer feedback and its A.M. Best Rating.
Cons
- Business Experience Discount: The 8% discount may be lower than some competitors, potentially impacting businesses with substantial industry experience.
- Limited Personalized Service: While offering comprehensive coverage, personalized service might not be as high a priority for Progressive.
#2 – State Farm: Best for Service Tailored
Pros
- Personalized Service: State Farm excels in offering personalized service, catering to the specific needs of car dealerships.
- Multi-Policy Discount: State Farm insurance review & ratings highlight significant benefits for businesses seeking to consolidate their insurance coverage, with a noteworthy 15% discount offering a competitive edge.
- A+ A.M. Best Rating: State Farm boasts a top-tier A+ A.M. Best Rating, indicating financial stability and reliability.
Cons
- Higher Rates for Good Drivers: The average monthly rate for good drivers is $400, which might be higher than some competitors.
- Limited Industry Expertise: While providing personalized service, State Farm may lack specialized expertise in the car dealership industry.
#3 – Nationwide: Best for Unique Policies
Pros
- Customizable Policies: Nationwide stands out for its customizable policies, allowing businesses to tailor coverage to their specific needs.
- A+ A.M. Best Rating: Nationwide insurance review & ratings highlight their prestigious A+ A.M. Best Rating, affirming their robust financial stability and strength.
- Multi-Policy Discount: With a 10% discount, bundling policies with Nationwide can result in substantial savings.
Cons
- Higher Average Monthly Rate: The average monthly rate for good drivers is $350, potentially making it less cost-effective for some businesses.
- Lower Business Experience Discount: With an 8% business experience discount, Nationwide may offer less incentive for businesses with significant industry experience.
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#4 – Allstate: Best for Personalized Services
Pros
- Reputation and Trust: Allstate insurance review & ratings highlight the company’s distinguished reputation and the strong confidence customers have in its service.
- Multi-Policy Discount: A 15% discount incentivizes businesses to bundle their policies, maximizing cost savings.
- Business Experience Discount: With an 8% discount, Allstate provides a moderate incentive for businesses with industry experience.
Cons
- Higher Average Monthly Rate: The average monthly rate for good drivers is not specified, but Allstate may have rates on the higher side.
- Limited Personalized Service: While reputable, Allstate may not prioritize highly personalized service for car dealerships.
#5 – Farmers: Best for Dealership Needs
Pros
- Specialized Coverage: Farmers excels in providing specialized coverage, catering to the unique needs of car dealerships.
- Multi-Policy Discount: Businesses are incentivized to combine policies for increased savings through a 10% discount, as seen in Farmers insurance review & ratings.
- Customizable Policies: Farmers offers customizable policies, allowing businesses to tailor coverage to their specific requirements.
Cons
- Higher Average Monthly Rate: The average monthly rate for good drivers is not specified, but it may be relatively higher.
- Lower Business Experience Discount: With a 10% discount, Farmers provides a moderate incentive for businesses with industry experience.
#6 – Travelers: Best for Managing Risk
Pros
- Risk Management Focus: Travelers specializes in risk management, providing businesses with targeted strategies to mitigate potential risks.
- Competitive Multi-Policy Discount: An 8% discount for bundling policies ensures cost savings for businesses.
- Reputable Provider: Travelers insurance review & ratings highlight the longstanding credibility and reliability of this esteemed insurance company.
Cons
- Average Monthly Rate not Specified: The specific average monthly rate for good drivers is not provided in the information.
- Limited Industry Expertise: While strong in risk management, Travelers may have less industry-specific expertise for car dealerships.
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#7 – Liberty Mutual: Best for Global Reach
Pros
- Global Reach: Liberty Mutual stands out for its global reach, offering coverage that extends beyond local boundaries.
- Industry Recognition: With a 12% industry expertise discount, Liberty Mutual is well-equipped to cater to the unique needs of car dealerships.
- Reputation for Stability: The Liberty Mutual insurance review & ratings highlight Liberty Mutual’s recognized track record of financial strength and dependability.
Cons
- Lower Multi-Policy Discount: The 5% multi-policy discount might be less enticing compared to competitors offering higher discounts.
- Average Monthly Rate not Specified: The specific average monthly rate for good drivers is not provided in the information.
#8 – The Hartford: Best for Industry Expertise
Pros
- Industry Expertise: The Hartford specializes in industry expertise, offering tailored solutions for car dealership insurance needs.
- Competitive Business Experience Discount: With a 12% discount, businesses with significant industry experience can benefit from cost savings.
- Reputable Provider: The Hartford insurance review & ratings reflect the company’s solid standing for dependability and resilience within the insurance sector.
Cons
- Average Monthly Rate not Specified: The specific average monthly rate for good drivers is not provided in the information.
- Potentially Lower Multi-Policy Discount: An unspecified multi-policy discount may be less attractive compared to competitors offering higher percentages.
#9 – Chubb: Best for Elevating Coverage
Pros
- High-Value Coverage: Chubb excels in providing high-value coverage, ensuring robust protection for valuable assets.
- Multi-Policy Discount: By combining various insurance policies, companies can optimize their savings with a 15% discount through Chubb insurance review & ratings.
- A+ A.M. Best Rating: Chubb’s top-tier A+ A.M. Best Rating reflects strong financial stability and reliability.
Cons
- Higher Average Monthly Rate: The average monthly rate for good drivers is not specified, but Chubb’s focus on high-value coverage might result in higher premiums.
- Potentially Limited Customization: While offering high-value coverage, Chubb may provide less flexibility for businesses seeking highly customized policies.
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#10 – CNA: Best for Specialized Assurance
Pros
- Specialized Expertise: CNA specializes in providing expertise tailored to specific industries, ensuring comprehensive coverage for car dealerships.
- Competitive Multi-Policy Discount: A 12% markdown incentivizes businesses to combine policies, amplifying potential savings, as evidenced in CNA insurance review & ratings.
- Reputable Provider: CNA is a reputable insurance provider known for its reliability and stability.
Cons
- Average Monthly Rate not Specified: The specific average monthly rate for good drivers is not provided in the information.
- Potentially Limited Global Reach: CNA’s focus on specialized expertise may result in less extensive global coverage.
Business Insurance for Car Dealerships: Types of Coverage to Safeguard Your Business
Running a car dealership involves a significant investment, long hours, and inherent risks. Without proper insurance coverage, these risks can result in substantial financial losses. Here are some of the most crucial types of insurance policies that car dealerships need to protect against unforeseen damages.
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In the absence of adequate insurance coverage, these risks pose a serious threat, potentially leading to significant financial losses that could undermine the dealership’s viability and long-term success.
- Commercial Property Insurance: Commercial property insurance is essential for all businesses, especially car dealerships, given the exposure of vehicles to numerous risks like theft, vandalism, fire, floods, or hailstorms. To gain further insights, consult our comprehensive guide titled “Commercial Insurance: A Complete Guide.”
- Dealer Insurance: Dealer insurance is a specialized type of business insurance designed specifically for car dealerships. It offers comprehensive coverage for the unique risks faced by dealerships, including. Test-driving coverage for vehicles owned by the dealership. Coverage for employees driving dealership-owned vehicles.
- Business Interruption Insurance: Standard insurance policies typically cover physical damage or loss, but they may not address the financial losses resulting from interrupted business operations. In the event of unexpected incidents like vandalism, a dealership may need to close temporarily for repairs, leading to lost profits.
Therefore, securing comprehensive insurance is imperative to safeguard against potential liabilities, property damage, and other unforeseen challenges, providing essential protection for the dealership’s financial well-being and sustainability.
Business Insurance for Car Dealerships: Monthly Rates by Coverage Level & Provider
Insurance Company Minimum Coverage Full Coverage
Allstate $365 $775
Chubb $450 $900
CNA $430 $880
Farmers $380 $800
Liberty Mutual $405 $850
Nationwide $350 $715
Progressive $350 $750
State Farm $400 $825
The Hartford $380 $810
Travelers $340 $695
When insuring car dealerships, rates for minimum coverage range from $340 with Travelers to $450 with Chubb, while full coverage rates range from $695 with Travelers to $900 with Chubb. Notably, Progressive and Nationwide offer competitive options, with minimum coverage starting at $350 and $715 respectively, and full coverage starting at $750 and $715 respectively.
Handling Insurance Claims for Car Dealerships: Navigating the Process With Business Insurance
Navigating insurance claims can prove intricate, particularly within the context of car dealerships, due to the multifaceted nature of their operations and the diverse array of risks they face. Here are the ten steps to help you navigate through the process effectively:
- Document the damage. As soon as the damage occurs, document it thoroughly. Take photographs or videos of the affected areas or vehicles. Make detailed notes about the extent of the damage, including any visible signs or losses.
- Review your insurance policy. Carefully review your insurance policy to understand the coverage and exclusions relevant to the damage you have incurred. Pay attention to any specific requirements or procedures outlined by your insurance provider for filing a claim.
- Notify your insurance provider. Contact your insurance provider promptly to notify them of the incident and initiate the claims process. Provide them with all the necessary information, including the date and time of the incident, a description of the damage, and any supporting documentation you have gathered.
- Gather supporting documentation. Compile all relevant documentation to support your claim. This may include repair estimates, invoices, receipts, police reports (if applicable), and any other evidence that substantiates the damage and the associated costs.
- Work with an insurance claim attorney. Consider engaging an experienced insurance claim attorney, especially if you encounter difficulties or disputes with your insurance provider. They can provide guidance, negotiate on your behalf, and ensure your rights are protected throughout the claims process.
- Cooperate with the insurance adjuster. An insurance adjuster will likely be assigned to assess the damage and determine the claim’s validity. Cooperate with them by providing access to the damaged property, answering their questions truthfully, and providing any additional documentation they request.
- Obtain repair estimates. Obtain multiple repair estimates from reputable repair shops or contractors. These estimates should detail the scope of repairs needed and the associated costs. Provide these estimates to your insurance adjuster to facilitate the claims evaluation.
- Review the settlement offer. Once your insurance provider evaluates your claim, they will present a settlement offer. Carefully review the offer, comparing it to your policy coverage and the documented damages. If you believe the offer is inadequate, consult with your insurance claim attorney before accepting or negotiating for a fair settlement.
- File an appeal if necessary. If you disagree with the settlement offer or believe your claim has been wrongfully denied, you have the option to file an appeal with your insurance provider. Consult with your insurance claim attorney to guide you through the appeals process and present a strong case on your behalf.
- Finalize the claim and receive payment. Once you reach a satisfactory settlement with your insurer, finalize the claim by signing necessary documents. After completion, expect the agreed-upon payment for damages. For additional details, explore our comprehensive resource titled “Your Insurance Agent’s Role in the Claims Process.”
From inventory damage to liability issues arising from test drives, the intricacies of coverage requirements demand a nuanced understanding of policy terms and diligent documentation.
Additionally, coordinating with multiple stakeholders, such as insurers, manufacturers, and customers, further complicates the claims process, requiring meticulous attention to detail and effective communication to expedite resolutions while minimizing disruptions to business operations.
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Case Studies: The Impact of Business Insurance for Car Dealerships
In the dynamic world of automotive commerce, comprehensive insurance plays a pivotal role in safeguarding dealerships against unforeseen risks. Examining real-life scenarios illuminates the profound influence of tailored insurance solutions on the resilience and prosperity of car dealerships.
- Case Study #1 – Safeguarding Dealership Assets: A busy car dealership sought comprehensive coverage for its diverse vehicle inventory. Progressive’s tailored policies, coupled with discounts, ensured protection, cost optimization, and peace of mind, backed by positive customer reviews.
- Case Study #2 – Personalized Service Excellence: A family-owned car dealership found tailored insurance from State Farm, featuring a 15% multi-policy discount and dedicated account management. With an A+ A.M. Best Rating, they secured savings and a trusted long-term partner.
- Case Study #3 – Tailoring Policies for Growth: A burgeoning car dealership sought adaptable insurance for its growth, opting for Nationwide’s customizable policies and 10% multi-policy discount. With Nationwide’s flexibility and A+ A.M. Best Rating, the dealership navigated expansion confidently, assured of adaptable coverage.
These insights underscore the indispensable value of robust insurance coverage in fortifying the foundations of automotive businesses, serving as a bulwark against potential financial pitfalls and disruptions. To learn more, explore our comprehensive resource on commercial auto insurance titled “Car Insurance: A Complete Guide.”
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By providing a protective shield against liabilities, property damage, and other unforeseen events, such insurance not only secures the continuity of operations but also instills confidence among stakeholders, fostering long-term stability and growth.
Conclusion: Protecting Your Car Dealership With Adequate Insurance Coverage
Having the right insurance is vital for car dealerships. Commercial property, dealer, and business interruption insurance are crucial, protecting assets and ensuring financial security. Commercial property insurance safeguards physical assets, while dealer insurance addresses specific risks. To delve deeper, refer to our in-depth report titled “What car insurance discounts does dealers assurance company offer?”
Business interruption insurance helps offset financial losses during periods of suspended operations. By understanding and utilizing these types of insurance, car dealerships can navigate challenges with confidence and ensure the long-term success of their business.
Protect your vehicle from whatever the road throws at it by entering your ZIP code into our free comparison tool below to see affordable car insurance quotes.
Frequently Asked Questions
Which car has most expensive insurance?
Dodge, Tesla and BMW models are among the most expensive cars to insure while drivers often find cheap coverage on Mazda, Volkswagen and Subaru vehicles. Discover if you are overpaying for car insurance below.
What is the best insurance for dealerships?
The best insurance for dealerships depends on various factors such as the size of the dealership, specific risks faced, and budget. However, popular options often include comprehensive policies offered by reputable insurers like Progressive, State Farm, and Nationwide, which tailor coverage to meet the unique needs of car dealerships.
No matter how much coverage you need, you can find the lowest rates by entering your ZIP code into our free comparison tool below.
What age is car insurance most expensive?
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
Check out our ranking of the top providers: Best Car Insurance for 21-Year-Old Drivers
When should I involve a car dealership insurance claim attorney?
If you encounter difficulties, disputes, or if your claim is wrongfully denied by your insurance provider, it’s advisable to involve a car dealership insurance claim attorney. They can provide guidance, negotiate on your behalf, and ensure your rights are protected throughout the claims process, maximizing your chances of a fair resolution.
How can insurance lessen the risk in a business?
Insurance helps protect small businesses by taking on some of the financial burden if things go wrong. From defective stock and workplace injury to business interruption and cover for your commercial property. The right insurance can cover you against unforeseen circumstances.
What type of insurance is best for car?
Yes, the premium for comprehensive care insurance is on the higher side when compared to the other types of car insurance in India. This is only because comprehensive car insurance offers more protection for your car than other types of motor insurance.
For a thorough understanding, refer to our detailed analysis titled “How does the insurance company determine my premium?“
What is the best car insurance for seniors?
Nationwide is the best car insurance for seniors. It has competitive rates, a low number of consumer complaints and valuable coverage features, such as vanishing deductibles and accident forgiveness.
Who has the most affordable car insurance?
USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.
Who offers the cheapest general liability insurance?
Next offers the cheapest general liability insurance nationwide, offering affordable policies for sole proprietors and LLCs alike, along with a quick quote process. With Next, sole proprietors pay an average of $25 per month, while LLCs pay an average of $29 per month for general liability insurance.
To expand your knowledge, refer to our comprehensive handbook titled “Commercial General Liability (CGL) Insurance: A Complete Guide.”
At what age is car insurance cheapest?
Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.
What is the collision insurance?
Collision Insurance is coverage that pays the cost of repairing or replacing your vehicle if it is damaged in an accident, regardless of who is at fault. This includes collisions with another vehicle or an object, like a guardrail or a tree.
Compare insurance rates today by entering your ZIP code into our free comparison tool below.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.