Best Auto Insurance for Dealerships in 2024 (Top 10 Companies Ranked)

Read on to find the best auto dealer insurance cost that perfectly aligns with your dealership’s needs and budget.

You can also enter your ZIP code into our free quote comparison tool above to find the best provider for you.

#1 – Progressive: Top Pick Overall

Pros

• Discounts for bundling multiple policies: Progressive offers discounts for combining commercial auto insurance with other policies, providing potential cost savings for dealerships. You can read more about Progressive’s discounts in our Progressive auto insurance review.
• Business-related coverage options for dealerships: Progressive understands the unique needs of businesses and provides coverage options tailored to protect dealerships.
• Efficient online claims processing: Progressive’s online claims processing streamlines the claims experience for dealerships, ensuring quick and convenient resolution.

Cons 

• Minimum coverage may not include all desired protections: While Progressive offers competitive rates, the minimum coverage might lack certain protections that specific dealerships may require.
• Limited in-person support: Progressive’s emphasis on online services may result in limited face-to-face interactions, which some dealerships may prefer.

#2 – Geico: Runner Up for Cost Savings

Pros 

• Easy online management of policies: Geico’s user-friendly online platform allows for convenient policy management, saving time for busy dealership professionals.
• Competitive rates for commercial auto insurance: Geico offers competitive rates, which can be advantageous for dealerships looking to minimize insurance costs. You can learn more in our Geico auto insurance review. 
• 24/7 customer service: Geico ensures around-the-clock customer support for any inquiries or assistance, benefiting dealership professionals with busy schedules.

Cons

• Limited in-person support: Geico primarily operates online, which may be a drawback for dealerships seeking more personalized, face-to-face interactions.
• Potential variations in customer service experiences: While Geico is known for efficiency, the quality of customer service may vary.

#3 – State Farm: Best for Coverage Options

Pros 

• Customizable coverage plans: State Farm provides the flexibility for dealerships to tailor coverage plans to their specific needs, ensuring a personalized approach. You can learn more in our State Farm auto insurance review.
• Local agents for personalized assistance: State Farm’s extensive network of local agents facilitates in-person support, fostering a more personalized and responsive service.
• Availability of industry-specific coverages: State Farm offers industry-specific coverages that cater to the unique risks faced by dealerships.

Cons 

• Rates may be higher for certain types of vehicles: State Farm’s rates may vary based on the types of vehicles in a dealership’s inventory, potentially leading to higher premiums.
• Limited online quote options: State Farm’s online quote options may be less extensive, affecting the convenience for dealerships seeking quick quotes.

#4 – Allstate: Best for Extensive Network of Agents

Pros 

• Numerous discount opportunities: Allstate provides various discounts, including multi-policy discounts, which can result in cost savings for dealerships bundling their insurance needs. 
• Available business-related coverages: Allstate offers commercial coverages specifically designed to meet the needs of businesses, providing comprehensive protection for dealerships. You can learn more about Allstate’s coverages in our Allstate auto insurance review.
• User-friendly mobile app: Allstate’s easy-to-use mobile app provides convenience for dealership professionals managing their policies on the go.

Cons 

• Premiums may be higher compared to some competitors: While Allstate offers comprehensive auto insurance, some dealerships may find their premiums relatively higher than those offered by other providers.
• Limited local agents: Allstate’s local agent network may be more restricted, potentially impacting the level of personalized assistance for some dealerships.

#5 – Nationwide: Best for Wide Range of Commercial Insurance

Pros

• Business auto insurance tailored to specific needs: Nationwide’s commercial auto insurance is customizable, allowing dealerships to tailor coverage to their unique requirements.
• Potential discounts for safety features: Nationwide offers discounts for safety features on vehicles, encouraging dealerships to invest in safer inventory. You can learn more about Nationwide’s discounts in our Nationwide auto insurance review. 
• Strong financial ratings: Nationwide’s strong financial ratings provide confidence and security for dealerships.

Cons

• Rates may vary based on location: The cost of coverage with Nationwide may vary depending on the location of the dealership, potentially leading to different rates for different businesses.
• Limited local agents: Nationwide’s local agent network may be less extensive, affecting the availability of in-person support for dealerships.

#6 – Farmers: Best for Customizable Policies

Pros

• Commercial auto policies with various coverage options: Farmers offers a range of coverage options for commercial auto insurance, allowing dealerships to tailor their policies to meet specific needs. You can learn more about Farmers’ coverage options in our Farmers auto insurance review. 
• Potential for bundling discounts: Farmers provides opportunities for bundling multiple policies, potentially resulting in cost savings for dealerships. 
• Educational resources for policyholders: Farmers offers educational resources to help dealership professionals understand and manage their insurance.

Cons

• Premiums may be higher depending on location and coverage: The cost of coverage with Farmers may be influenced by factors such as the location and the extent of coverage, potentially leading to higher premiums.
• Mixed customer service reviews: The quality of customer service may vary, impacting the overall satisfaction for some dealerships.

#7 – Liberty Mutual: Best for Commercial Insurance Solutions

Pros

• Customizable coverage for business vehicles: Liberty Mutual offers customizable coverage options for business vehicles, providing flexibility for dealerships to tailor their insurance.
• Discounts for safety features: Liberty Mutual provides discounts for safety features on vehicles, encouraging dealerships to prioritize safety in their inventory. You can learn more about Liberty Mutual’s discounts in our Liberty Mutual auto insurance review.
• Efficient online claims process: Liberty Mutual’s online claims process provides convenience and efficiency for dealership professionals.

Cons

• Premiums may be on the higher side: While Liberty Mutual offers comprehensive coverage, some dealerships may find their premiums relatively higher compared to other providers.
• Mixed customer service reviews: The quality of customer service may vary, impacting the overall experience for some dealerships.

#8 – The Hartford: Best for Small Business Insurance

Pros

• Comprehensive business auto coverage: The Hartford specializes in providing comprehensive coverage for small businesses, ensuring dealerships have the protection they need.
• Potential for discounts on bundled policies: The Hartford offers opportunities for bundling multiple policies, potentially leading to cost savings for dealerships. Learn more in our The Hartford auto insurance review.
• Fast online claims process: The Hartford offers a fast online claims process, providing quick and efficient support for dealership professionals.

Cons 

• Rates may vary based on location and business size: The cost of coverage with The Hartford may be influenced by factors such as the location and the size of the dealership, potentially leading to variations in rates.
• Limited availability to AARP members: The Hartford’s exclusivity to AARP members may limit options for non-members.

#9 – Travelers: Best for Industry-Specific Commercial Insurance Products

Pros 

• Customizable commercial auto policies: Travelers provides customizable commercial auto policies, allowing dealerships to tailor coverage to their specific needs.
• Potential for discounts based on safety measures: Travelers offers discounts for safety features on vehicles, incentivizing dealerships to prioritize safety. Learn more about Travelers’ insurance in our Travelers auto insurance review.
• Variety of industry-specific coverages: Travelers offers a wide range of industry-specific commercial insurance products, providing comprehensive protection for dealerships.

Cons 

• Premiums may be higher compared to some competitors: While Travelers provides comprehensive coverage, some dealerships may find their premiums relatively higher than those offered by other providers.
• Limited local agents: Travelers’ local agent network may be more restricted, potentially affecting the availability of in-person support for dealerships.

#10 – Chubb: Best for High-End, Tailored Solutions for Commercial Clients

Pros

• Tailored coverage for high-value vehicles: Chubb specializes in providing coverage for high-value vehicles, ensuring that dealerships with premium inventory have adequate protection. Learn more in our Chubb auto insurance review.
• Access to risk management services: Chubb offers risk management services, providing additional support for dealerships to mitigate potential risks. 
• Efficient claims handling: Chubb’s expertise extends to efficient claims handling, ensuring a seamless process for dealerships in the event of a claim.

Cons 

• Premiums may be relatively higher: Chubb’s focus on high-end coverage may result in relatively higher premiums compared to some other providers.
• Limited local agents: Chubb’s services may be more centralized, potentially impacting the availability of in-person support for dealerships in certain regions.

Key Coverage for Car Dealers

From garage liability insurance to physical damage coverage and workers’ compensation, we delve into the types of incidents each policy shields against and the invaluable benefits they provide to both dealerships and their employees.

Garage Liability Insurance

Car dealers need to be protected from property damage and bodily injury claims arising from liable incidences. Garage liability coverage will take care of such claims, functioning as auto dealer liability insurance. Often, garage liability coverage is required by the state before appropriate licenses are issued.

In most cases, garage liability is sold in two forms of a dealer insurance policy:

• Claims made policies: Pay for claims filed in the course of the policy i.e. during the specified policy period or extension period regardless of when the particular incident happened.
• Occurrence policies: On the other hand, pay for property damage or bodily injuries resulting from incidences that happen during that particular policy period only.

Garage liability is a combination of premises and vehicle insurance and is required by the DMV before the issuance of an operating license.

Physical Damage

Popularly referred to as dealer’s open lot coverage, a physical damage policy covers the dealer from losses arising from incidences such as fire, vandalism, theft, collision, and natural disasters.

It is important as a dealer to read and understand the terms of the policy, what’s covered and what isn’t. In most cases, this type of coverage will cover losses from a collision, as well as other specified perils.

Read More: Collision auto insurance

Often, insurance for car dealerships will include a comprehensive coverage in the policy, too.

• Collision coverage means that the policy will pay for all damages arising from collision-related incidences.
• Specified perils cover incidences specified in the policy such as damage by fire, theft cases, vandalism, and weather-related damage. In some cases, this coverage is simply referred to as fire and theft.
• Comprehensive coverage, in this case, covers pretty much anything else not specified in the policy.

You can extend the policy to cover all the vehicles in your lot including vehicles in consignment as well as those under a floor plan.

The policy will carry a deductible for each vehicle, which is to be deducted from the total claim amount in the event of the occurrence of a covered incident. You can read more in our what is a good deductible for auto insurance guide.

Workers’ Compensation

This type of coverage provides your employees with medical benefits and wage replacement in case of personal injury at work. As a car dealer, you should make sure that your employees are properly taken care of in the event of a work-related injury.

Auto Insurance Rates for Dealerships

With the high number of vehicles coming and going, an accident is bound to happen. Make sure your employees are protected from any of the following incidences:

• Accidents when driving customers’ vehicles
• Getting injured while load or unloading a fleet of cars from a truck
• Getting hit by any of the many vehicles going in and out of the dealership
• Accidents when test-driving company’s unregistered cars

Carrying this business insurance will help your employees with any medical expenses and loss of income.

Surety Bonds

Car dealers are required to post a surety bond before the issuance of a license in most states.

The surety bond guarantees the state that the car dealer will observe all the governing the sale of motor vehicles in the state.

Also, the surety bond is used as a financial instrument ensuring compliance with the terms of all the written agreements pertaining to the exchange or sale of motor vehicles in a given state.

In actuality, a surety bond is not an insurance policy. A surety bond is a contract between the dealer and the state showing the dealer’s ability to settle a loss up to the penal aggregate specified in the bond.

An occurrence of a loss, in this case, refers to situations where the dealer acts in a somehow unethical manner or breaks the terms of the contract.

Fleet Car Insurance for Auto Dealers

Fleet car insurance provides a motor vehicle dealer with an opportunity to cover all the vehicles the dealership owns under one policy. A business that owns 3 or more trucks, cars or vans can check out fleet car insurance.

This type of auto dealer insurance is flexible and convenient — it’s easy to add or remove vehicles from the policy. Premiums can be paid annually, semi-annually, quarterly or monthly.

Auto insurance companies like it when payments are made in one or two payments in a year, and you may get a discount if you do that. You can tailor the policy to meet your personal and financial needs.

Car dealers need protection in the form of auto insurance whether they are driving their personal cars or at work. Your best bet is to enter your ZIP code below and compare auto insurance rates.

Get an insurance quote today for the necessary auto insurance products at reasonable rates and stay safe.