Auto Dealer Insurance in California

✆ Call An Agent Now ➜

9:00am - 6:00pm Mon-Fri

Request an Assessment

We'll Reply in 15min*

Keeping up with the fast-paced advancements in automotive technology, while catering to the evolving needs of California's car buyers is no easy feat. You constantly have to stay ahead of the competition by providing a variety of vehicles that meet their needs and doing so without sacrificing quality.


That, added to the many risks involved in running an automotive dealership, only amplifies the need for dependable auto dealer insurance in California. The right coverage can provide you with the financial protection, business continuity, and peace of mind needed to keep your dealership running smoothly, even during unexpected and challenging times.


We Are a Trusted Auto Dealer Insurance Agency in California


Your California auto dealership insurance premiums will depend on the type and amount of coverage you need. On average, you can expect to pay anywhere from $3,000 -$10,000 per year for adequate coverage. But those are just ballpark figures. The exact cost of your policy will depend on a variety of factors, such as the size and complexity of your business, how many vehicles you carry at one time, the value of those vehicles, and more.


At Western Insurance Marketing Corporation, we’ve been providing comprehensive auto dealer insurance in California for over 50 years. Our experienced team provides customized commercial coverage solutions tailored to meet the unique needs of your business. We work with only the best insurance carriers in the state and have access to some of the most comprehensive policies available.


Reach out to us today to get started on finding the perfect auto dealer insurance solution for your business. We look forward to speaking with you!

Who Is California Auto Dealer Insurance Meant For?



California auto dealer insurance is meant for anyone who owns or operates an automotive dealership in the state. That includes:


  • New car dealerships
  • Used car dealerships
  • Vehicle brokers and wholesalers
  • Auto body shops
  • Car rental agencies
  • Auto auctioneers
  • Collision repair centers
  • Automotive service centers and repair shops
  • Mobile oil-change services
  • Automotive parts suppliers
  • Tire shops and auto supply stores
  • Motorcycle dealerships
  • RV and trailer dealerships
  • Motor home dealerships
  • Vehicle storage facilities and yards


You may also need California car dealer coverage if you offer any of the following services:


  • Vehicle leasing
  • Vehicle financing
  • Parts warranties
  • In-house repairs and maintenance services
  • Extended warranties for vehicles or parts
  • Roadside assistance and towing services


Most of these services require separate types of coverage, so it’s important to speak with your insurance provider about the specific risks associated with them.

Why Do I Need Auto Dealer Insurance in California?


Auto dealer insurance is essential for any business operating in California that deals with vehicles and provides related services. Without adequate protection, you may be exposed to significant financial losses in the event of an accident or lawsuit.


In California, auto dealer insurance is regulated by the Department of Motor Vehicles (DMV). The DMV requires all dealerships to maintain certain minimum levels of coverage in order to stay compliant with state law. These include:


  • Liability Insurance
  • Property Insurance
  • Garage Keepers Liability Insurance
  • Garage Liability Insurance
  • Commercial Auto Insurance
  • Workers Compensation Insurance (if you have employees)
  • Vehicle Service Contracts (if applicable)


Your insurance provider can help you determine which types of coverage are right for your business and what limits you should have in place.

General Liability Insurance For California Auto Dealers


General liability insurance is a must-have for California auto dealers. As the name suggests, it provides protection for your business in the event of a third-party liability claim, such as injury to another person or property damage caused by you or one of your employees. It also covers certain legal fees and other costs associated with defending yourself against such claims.


This type of coverage is an essential part of any California auto dealer insurance package especially because of the risks associated with selling and servicing vehicles. It is important to note that the limits of your liability policy should be significant enough to cover any potential damages.


You may also want to consider adding an umbrella policy – a supplemental insurance product that provides additional financial protection beyond the limits of your general liability coverage. An umbrella policy can help you cover costs associated with serious accidents or lawsuits, so it is generally a good idea to have one in place.

Commercial Property Insurance for California Auto Dealers


Commercial property insurance provides protection for any physical assets owned or leased by your auto dealership. This includes items like vehicles, tools and equipment, office furniture and fixtures, signs, computers and other electronic devices, inventory, and more.


It also covers against certain “perils” such as fire, wind, and theft. Your coverage limits should reflect the actual value of your assets and take into account any potential losses due to an accident or disaster.



If you are leasing a building for your dealership, landlord liability insurance may also be required. This provides financial protection in case someone is injured on your premises or property damage occurs as a result of your business operations.

Garage Keepers Liability Insurance for California Auto Dealers


This type of liability insurance provides coverage in the event a customer’s vehicle is damaged while in your care, custody, or control. This could occur if one of your employees accidentally damages a car while servicing it or if someone steals an unlocked vehicle from your lot.



Garage keepers coverage is typically included in most California auto dealer insurance policies and can provide significant financial protection in the event of a customer claim. It is important to make sure that you have sufficient limits to cover any potential losses.

Garage Liability Insurance


Commonly referred to as “dealer’s open lot insurance,” this type of coverage provides financial protection in the event a customer or visitor is injured on your property. It also covers certain property damage caused by you or your employees while servicing vehicles.



It is important to note that general liability and garage keepers insurance are two separate policies, but most insurers will offer both in a single package. This can make it easier to find the coverage you need and keep your premiums low.

Commercial Auto Insurance for California Auto Dealers


If your dealership owns or leases any vehicles, then commercial car insurance is essential. This type of policy provides financial protection if one of your vehicles is involved in an accident, stolen, or damaged by a natural disaster. It also covers the cost of injuries sustained by drivers and passengers as well as property damage caused to other people’s vehicles.


You will also need this type of coverage if you allow employees to use their own vehicles for business purposes. In this case, the policy should provide additional coverage for employee-owned vehicles.


The minimum coverage limits for commercial auto insurance in California are $15,000 per person and $30,000 per accident for bodily injury, and $5,000 for property damage. However, it is generally a good idea to purchase higher limits to ensure adequate financial protection.

Workers’ Compensation Insurance


If you have any employees who are not owners of the auto dealership, then workers’ compensation insurance is required by law. This type of policy provides financial protection in the event an employee is injured or becomes ill due to their job duties. It covers associated medical costs as well as lost wages, legal fees, and death benefits if necessary.

Other Coverages Available to California Auto Dealers


In addition to the types of coverage listed above, there are also a variety of other coverages available that can be tailored to meet the specific needs of your business. These include Professional Liability Insurance, Data Breach & Cyber Liability Insurance, and Employment Practices Liability Insurance. An insurance professional can help you evaluate your risk and determine which additional coverage you may need.

Ways to Lower Your California Auto Dealer Insurance Premiums


  • Raise your deductibles: Increasing your deductibles can help to lower your premiums, but make sure you have enough money set aside in the event of a claim.
  • Compare quotes from multiple insurers: Shopping around and comparing quotes from different insurance companies can help you find the best rates for your business.
  • Bundle your policies: Most insurers will offer discounts if you bundle multiple types of coverage together, such as general liability and commercial auto insurance.
  • Take advantage of safety discounts: If your dealership has safety protocols in place, such as requiring employees to wear seatbelts or installing an alarm system, many insurers will offer a discount.
  • Ask about group discounts: Some insurers may offer group discounts if you insure multiple vehicles or have multiple locations.
  • Install safety equipment in your vehicles: Installing devices such as car alarms and GPS tracking systems can help to lower your premiums by reducing theft or vandalism risks.
  • Stay claims-free: If you can keep your number of claims low, most insurers will reward you with a discount on your premiums.
  • Maintain good credit: Insurers often use credit scores to determine rates, so maintaining a good credit score can help lower your premiums.

Get The Best Rates on California Auto Dealers' Insurance


With so many factors involved, it can be difficult to get the best rates on California auto dealers' insurance. 


Western Insurance Marketing Corporation bridges the gap between you and the best insurers in California. We have decades of experience in the auto insurance industry, and we can help you find coverage that fits your needs at an affordable price. 



Contact us today to get started!

REQUEST A QUOTE

Speak with a CA Auto Dealer Insurance specialist today!

Get started today!

Prefer to speak with an agent now?

Contact Us

Share by: