The Hartford doesn’t offer insurance for car dealers online, but a local agency or Tivly may be able to help you find the coverage you need. The following content includes information from various sources and can change over time.
What Is Auto Dealer Insurance?
Auto dealers insurance is made up of different types of business insurance coverages designed to help protect you from the risks you might face as you sell, service and store vehicles.
Whether you operate a small independent lot or a large dealership, you’re responsible for expensive inventory, test drives, customer interactions and so much more. The right coverage can help protect you from liability claims, property damage and other unexpected events that could cut into your bottom line.
Although The Hartford doesn’t offer auto dealer insurance coverage, we help connect auto dealers to Tivly, so they can get the coverage they’re looking for.
Why Might You Need Auto Dealership Insurance?
Car dealer insurance is a collection of coverages designed to help protect your business from the unique risks of selling vehicles. Every day, customers test drive cars, employees move vehicles around and high-value inventory sits on your lot. A single incident, like a collision during a test drive or a customer falling in your showroom, could lead to costly claims.
Automobile dealer insurance can help safeguard your business against many potential situations, like:
- Bodily Injury: A worker gets hurt while moving a vehicle, leading to medical expenses and time off work.
- Inventory Theft: An overnight break-in results in stolen cars or parts, causing major financial loss.
- Property Damage: A severe storm damages your lot and showroom, requiring costly repairs and replacements.
Who May Need Car Dealer Insurance?
Business insurance coverage can help protect many types of auto dealers, including:
- New and used car dealerships
- Independent used car lots
- Dealerships with service bays
- Specialty vehicle dealers
What Car Dealer Insurance Coverages Might I Need?
When it comes to protecting your dealership, you’ll want coverage that matches your potential risks. Many car dealers start with a Business Owner’s Policy (BOP) because of the peace of mind it can provide.
It combines three types of coverage to help protect you from the risks you may face during normal operations:
General liability insurance helps protect your dealership from claims that it caused bodily injury or property damage to others.
Commercial property insurance helps protect the owned or rented building you use to operate your car dealership, as well as the inventory, tools and equipment you rely on. These can include:
- New and used cars
- Computers
- Furniture
- Parts and supplies
Business income insurance helps replace lost income if you can’t operate temporarily because of covered property damage caused by wind, theft or fire.
It’s important to remember that a BOP doesn’t cover every type of claim car dealership owners may face. You’ll need to get other types of coverage to create a well-rounded insurance plan, including:
Workers’ compensation insurance to give your employees benefits if they get a work-related injury or illness.
Commercial auto insurance to help cover bodily injury or property damage claims from an accident that occurs while you or an employee uses a business-owned vehicle for work.
How Much Does Car Dealer Insurance Cost?
Although The Hartford doesn’t offer coverage for car dealers, here are the average costs our small business customers pay for common types of coverage. You can use these amounts to help estimate your insurance costs:**
- BOP: $1,687 a year, or about $141 a month
- Stand-alone general liability insurance: $810 a year, or about $68 a month
- Workers’ compensation insurance: $1,032 a year, or $86 a month
- Professional liability insurance: $744 a year, or $62 a month1
The cost of car dealer insurance coverage varies because every business has unique risks. Insurance companies consider several factors when determining your coverage cost, including:
- Number of employees
- Location of your business
- Type of coverage
- Your claims history
- The limits you select for your coverage
To find out your specific car dealer insurance costs, get a free quote online through Tivly.
General Liability Insurance
“A kid was running around our showroom when he slipped on the floor and hurt his foot. We had to call an ambulance to take him to the hospital for treatment.”
General liability insurance helps cover claims that your business caused bodily injury or property damage to someone else.
Employment Practices Liability Insurance (EPLI)
“A former technician sued us, saying she was passed over for a promotion because of her gender.”
Employment practices liability insurance (EPLI) helps protect your business from employment-related claims, like wrongful termination, discrimination and harassment.
Workers’ Compensation Insurance
“One of my technicians noticed an aching pain in his arm. He was diagnosed with carpal tunnel syndrome from working on cars.”
Workers’ compensation insurance gives your team benefits to help them recover from work-related injuries or illnesses. It can help pay their medical bills and replace lost wages.
Professional Liability Insurance
“A buyer claimed we misrepresented a used car’s accident history and threatened to take us to court.”
Professional Liability Insurance helps protect your business from litigation if a customer sues you for a mistake in your services, like if you use the wrong cleaning product and it discolors their leather seats. This coverage is also known as errors and omissions insurance.
Commercial Auto Insurance
“One of my employees was delivering a car to a customer when he accidentally backed the flatbed truck into their mailbox.”
Commercial auto insurance can help cover property damage and bodily injury claims if an employee gets into an accident while driving a business-owned vehicle for work.
Commercial Property Insurance
“There was a fire in our building that quickly spread and caused extensive damage to the showroom.”
Commercial property insurance helps protect your business' equipment, furniture and inventory from loss or damage caused by events like storms, fires or vandalism.
Get a Quote for Car Dealer Insurance
Your dealership deserves coverage that’s as strong as your reputation. Get a quote through Tivly.
Last Updated: April 23, 2026
1 What you pay for professional liability insurance will vary by product, limits chosen and risk class or hazard group associated with your business.
2 The Hartford, “Water and Freezing Damage, Burglary Lead The Hartford’s Top Five Small Business Claims,” viewed March 2026.
3 U.S. Bureau of Labor Statistics, "Employer-Reported Workplace Injuries and Illnesses in 2023,” viewed April 2025.
4 National Fire Prevention Association, “Fire Loss in the United States,” viewed April 2025.
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.
The Hartford does not currently have a product available to provide the coverage described on this page. You are being referred to Tivly in an effort to connect you with a carrier who may provide this coverage. This link will redirect you to a third-party website, owned and operated by an independent party ("Tivly"). Any link you make to or from the Tivly website will be at your own risk. Any use of the Tivly website will be subject to and any information you provide will be governed by the terms of the Tivly website, including those relating to confidentiality, data privacy and security. The Hartford and its affiliates (collectively "The Hartford") do not endorse or approve and make no warranties, representations or undertakings relating to the content of the Tivly website. The Hartford assumes no liability for loss, damage and any other consequence resulting directly or indirectly from your access to the Tivly website or any information that you may provide on the Tivly website.
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