Types of Auto Dealer Insurance Coverage
If you own a used car shop in Oklahoma or Texas, you need the right balance of insurance and bonds to stay legal and safe. Here are some of the most common questions that dealership owners in both states ask, along with clear answers that will help you go forward with confidence.
Insurance for Oklahoma Car Dealerships
What sorts of insurance do Oklahoma used car dealers need?
A lot of Oklahoma dealerships need a mix of garage liability insurance, dealer’s open lot coverage, workers’ compensation, and a surety bond. These protect your lot, inventory, employees, and customers.
What is the purpose of a dealer surety bond in Oklahoma?
According to the Oklahoma Used Motor Vehicle and Parts Commission, most used car sellers need a $25,000 surety bond. This bond keeps the state and consumers safe against fraud and other dishonest business practices. Without it, you cannot receive or renew your dealer’s license.
What is insurance for garage liability?
If someone gets hurt or has an accident at your business, garage liability insurance will protect you from lawsuits. This includes things like consumers slipping and falling on your lot, damage to your property, or an accident that happens while someone is test driving a car.
Do I need coverage for an open lot at a dealer in Oklahoma?
Yes. Dealer’s open lot coverage includes the autos you own and want to sell. Oklahoma is famous for tornadoes, hailstorms, and damage from strong winds. This insurance will help you keep a lot of money safe from storms, theft, fire, or vandalism.
Do dealers in Oklahoma need insurance for workers’ compensation?
If you have workers in Oklahoma, you must obtain workers’ compensation. If an employee gets hurt at work, this insurance pays for their medical care and lost wages.
Insurance for Auto Dealers in Texas
What forms of insurance does a Texas dealer of old cars need?
Most of the time, Texas used vehicle dealers need garage liability insurance, dealer’s open lot coverage, and workers’ compensation insurance if they have employees. A lot of people also purchase basic company coverage and cyber liability to be even safer.
What are the rules regarding bonds for dealers in Texas?
The Texas Department of Motor Vehicles requires all used car sellers in Texas to carry a $50,000 auto dealer surety bond. This bond protects customers from fraud and makes sure the corporation respects state regulations.
Do you need garage liability insurance in Texas?
Yes. Most lenders and insurance firms need it, and it is very important that you follow Texas license rules. It protects against accidents, damage to property, and injuries that occur while your dealership is open.
Why is it important to have open lot coverage in Texas?
Hail, floods, and wind damage can potentially harm the stock of Texas businesses. Dealer’s open lot coverage keeps your autos safe from these dangers as well as theft and vandalism.
Do Texas dealers have to have workers’ comp?
Most businesses in Texas do not have to get workers’ comp, but a lot of dealerships do regardless. It safeguards your dealership from being sued and keeps your employees safe if they are wounded at work.
Is it okay to combine my dealer bond and insurance?
Yes. In Oklahoma and Texas, a lot of brokers might combine your bond, liability, and inventory coverage into one policy. This makes it easier to renew and often saves money.
Last Thoughts
There is no one type of auto dealer insurance and bonding that works for everyone. Having the right insurance keeps you lawful and protects your business from costly risks, whether you work in Oklahoma or Texas.