Auto Dealership Security
Insurance companies want to know that you are taking measures to protect the vehicles you hold for sale. This means they question how you store, drive and repair these vehicles. Do you have fences around your lot? A closed circuit security system? Even a small measure like posts and chains will deter theft when your lot is not being manned after hours. Other items that help:
- Well-lit lot
- Heavy visibility locations – a 24 hour neighboring store can be a good thing! Especially if they have security cameras
- Motion lighting in rear and sides of buildings
Hiring Someone’s History
Did you know that your employees’ driving record can and will make a significant impact on your dealership insurance rates, EVEN if they are not furnished a demo? It is a good idea to make sure you screen the drivers’ licenses and history of any sales person, manager, lot porter, detailer and especially dealer trade or auction drivers! Remember everytime you “lend” a dealer tag or transport tag to an employee or friend, that individual is driving around with your ability to afford and buy insurance in the future!
What, if any, plans do you have to protect your vehicles from bad weather? Having an emergency inventory evacuation plan will help your insurance professional negotiate the best possible deal especially if you are in an area prone to bad weather like: hurricanes, flash flooding, high wind, ice storms or hail. Many of our dealers have existing deals with local shopping malls or owners of vacant land that is elevated. These “on demand” leases allow for the dealer to move inventory in the event of impending bad weather.
Are you gathering the right information before letting them “take a spin”? Unaccompanied test drives can spell disaster for your rates and for costly court cases. Did you know in many states a test drive that is not immediately returned and later reported as stolen may not be actionable by law enforcement? The “customer” that took the car for an extended test drive need only tell authorities that he/she had your permission for an extended demo and charges may be difficult to bring.
Having a set rule about test drives and a set route (we recommend all right turns to avoid the risk of crossing heavy traffic) will help keep potential claims down.
Lipstick for your “PIGS”
Our professionals deal with hundreds of dealerships; believe it or not even the marquee, large franchises have some “pigs” that the underwriting insurance company may find less then appealing. These “pigs” aren’t always vehicles. Sometimes they are the children and relatives of the owner. Past liability claims by key employees who are still with the company, or perhaps a frequency issue with the same type of claim happening over and over can cause major havoc with your ability to reign in your rates.
Our staff are experts at making the “pigs” look better (adding some “lipstick”); allowing our dealers to get the best coverage available. While we will not misrepresent a “pig” to the insurance company, there are ways to keep them from negatively affecting a dealership’s ability to obtain competitive and through coverage.
Contact one of our dealership risk managers for more information about reducing your risk today.