Dealers Assurance Auto Insurance Review

Formed in 1980, Dealers Assurance Company is a subsidiary of Dealers Alliance Corporation. Operating out of Ohio, the Mahoning Insurance Company was founded in 1935, but then it was bought by Dealers Alliance in 1977 and renamed Dealers Assurance.

The company offers auto insurance in 48 states and the District of Columbia with their main clients being auto dealerships. They do not offer insurance to private consumers.

The main focus of Dealers is on warranty programs in the auto industry. For instance, if a manufacturer provides for a 100,000 mile warranty on brakes of a new car and a client brings the car in for failed brakes, then the Dealers Assurance policy would take care of the cost. Above and beyond the insurance, the company makes accounting and regulatory compliance help available to its customers. They make sure their clients’ programs meet the set standards. In addition, they help their clients to draft vehicle service contracts and policy documents.

Dealership Insurance

Dealership insurance policies are, in general, more complicated than the policies offered to private consumers. This is mainly due to the large number of vehicles a dealership maintains, something consumer do not have to worry about. In addition, the laws regarding such policies are stricter and tend to vary from state to state. If one is interested in the specifics of what they have to offer, it is best to contact them directly.

A review of the company indicates that they have earned an “A-” credit rating from AM Best, which is considered excellent. Essentially, the rating shows that in case of a claim, the company has the financial standing to meet its obligations.Their financial size is a category VI, which translates to $25 Million to $50 Million.

All these facts and figures mean that if a dealership is looking at different types of auto insurance, then Dealers Assurance is one of the good ones to seriously consider. Naturally, it is best to compare several companies before selecting one that will suit the individual needs of a dealership. A search of the company shows that there are hardly any negative reviews, which means that the company is in the habit of keeping its customers satisfied.
Generally, the basic coverage designed for open lot protection includes, but is not limited to the following:

• Wide range of physical damage that includes comprehensive, collision and deception
• Cover at tent sales, auction sites, and trade shows
• Coverage for lease trade-ins and consignments
• No notification needed for dealer trades
• Collision cover for drive away without limit on mileage
• Choice of flexible deductibles
• Collateral protection insurance with limited cover at no extra charge

Cost of Dealership Insurance

Dealerships dealing in new or used cars need to keep in mind that the vehicles in their possession are their responsibility and so they need to consider the best auto insurance options carefully. Due to the greater risk involved, insurance for used car dealers is expensive. The main reason for this is that all kinds of customers can walk in and ask for a test drive, which leads to costly liability cover. Different states have different minimum cover requirements. In addition, garage liability is also important as it provides protection against storage area accidents. Normally, garage liability also includes auto liability, which is required by every state.

Another important coverage that needs to be considered is open lot coverage, which deals with damages to cars caused by natural phenomenon like floods, and things like fire, theft, and even vandalism. The limits for this kind of cover can be quantified according to each vehicle.

Garage keeper liability cover is another option open to dealerships. This cover is good for dealers offering repair services on cars in addition to their own. While similar to open lot cover, it applies to a separate category of autos. Other than the protection of vehicles, a dealership should also consider business related insurance to protect themselves against employee dishonesty, theft and business interruption.