Insurance is vital to any business, and used car dealerships are no exception. In fact, due to the challenges and potential liabilities inherent in selling pre-owned vehicles, insurance (umbrella insurance in particular) becomes even more critical for used car dealerships to maintain a trustworthy reputation among their customers.
In this blog, we’ll explore how this extra layer of protection can be a game-changer and offer your clients the peace of mind they need to thrive in the automotive market.
The Umbrella Policy and How It Works
Your client will most likely ask: What is an umbrella insurance policy? It’s a valid and important question that allows you to showcase your expertise as an insurance professional and provide valuable insights to your client. Here’s how you can explain it to them:
Umbrella insurance coverage is like an extra layer of protection beyond your regular insurance coverage. Think of it as an “umbrella” that shields you from unexpected financial storms. Just like a regular umbrella keeps you dry during rain, an umbrella insurance policy helps keep your finances safe when faced with unexpected liabilities.
For instance, if an expensive lawsuit arises due to a faulty vehicle sale and the dealer’s general liability policy is insufficient to cover all the damages, the umbrella policy will bridge the gap and safeguard the dealership’s assets and finances.
Quick Facts About Umbrella Insurance
Here are some important facts about umbrella insurance in the United States:
Higher Liability Limits: Umbrella policies typically come with higher liability limits, often starting at $1 million and going up from there.
Policy Requirements: Insurance companies often require businesses to have specific minimum liability limits on their primary policies to be eligible for an umbrella policy.
Application Process: Applying for umbrella insurance usually involves discussing your existing policies and personal situation with an insurance agent, followed by underwriting and approval.
Personal and Business Use: Umbrella insurance can extend to both personal and certain business activities, providing versatile protection for individuals and small business owners.
Is Umbrella Insurance Useful for a Used Auto Dealer?
Given the potential for high-dollar claims and the litigious nature of the auto industry, umbrella insurance is a valuable asset for used auto dealerships.
For your clients in the used car dealership industry, an umbrella insurance policy can mean the difference between weathering a financial storm and facing potential ruin.
By helping them understand the benefits of this additional layer of coverage, you’re positioning yourself as a valuable partner in their business’s success and providing them peace of mind so they can do what they do best: running a successful dealership.
About Aegis General Insurance Agency — Specialty Dealer Division
Aegis General Insurance Agency — Specialty Dealer Division strives to create a leading underwriting and distribution franchise in the program insurance market. We’ve bridged the gap between agents and client payments with our efficient ACH payment system. Partnering with us gives agents the advantage of ACH payment capability, allowing for direct billing through the firm. Call us today at (866) 429-1638 to find out how you could partner with Aegis to offer top-tier insurance coverages and modern features to your clients.
