For more on this part of the insurance industry:
1. visit our commercial fleet insurance page for a look at all products in this sector
2. or focus in on all of the automotive dealerships insurance products available on IB Markets!
Automotive dealerships insurance provides specialised coverage for businesses selling new or used vehicles in Australia. It covers risks like:
This tailored coverage is essential for dealerships because vehicle inventories are high-value assets.
In 2023, Australia’s motor insurance market was worth around $21 billion, showing the industry's size and importance. Automotive dealerships insurance makes sure that dealerships can handle unexpected risks and continue their operations without major financial setbacks.
The rise of digital operations has made cybersecurity insurance vital for protecting dealerships from data breaches and cyber-attacks. Digital tools now streamline insurance processes, improving efficiency and customer experiences. Beyond these advancements, several other concerns are shaping the automotive dealerships insurance industry:
telematics and usage-based insurance: insurers use telematics to offer usage-based policies, rewarding dealerships with lower premiums for safe driving practices
ACCC warning on scams: the ACCC highlights rising payment scams targeting businesses, urging verification of invoice details to prevent financial losses
sustainability policies: insurers are supporting dealerships’ eco-friendly practices, offering coverage for EV infrastructure and sustainable operations
The ACCC has been urged to take steps to address emerging challenges in Australia's automotive industry, including enhancing risk assessments and client education.
Brokers can use these insights to guide clients in adopting stronger fraud prevention strategies and sustainable practices.
In Australia, driving without compulsory third party (CTP) insurance is illegal under the Motor Accident Injuries Act 2017 (NSW) and similar state laws. This act mandates CTP insurance to cover injuries caused to others in a car accident.
All motor vehicle owners in Australia must have CTP insurance. This mandatory insurance covers liability for injuries to other people resulting from a motor vehicle accident. This insurance does not cover damage to property or the insured person's own vehicle.
Beyond CTP, there are three main types of car insurance:
third party property damage: covers damage to other people's property but not the insured vehicle
third party fire and theft: includes third party property damage, plus coverage for fire and theft of the insured vehicle
comprehensive insurance: covers both damage to the insured vehicle and others' property, regardless of fault
Third party insurance protects against damage to others' property but does not include coverage for the insured vehicle. Comprehensive insurance provides broader protection, covering damage to both the insured vehicle and others' property. The choice depends on the vehicle's value, budget, and required coverage level.
Automotive dealerships insurance is important for businesses in the motor trade industry. Key stakeholders include:
car dealerships: businesses selling new or used vehicles
motorcycle and caravan dealers: specialised dealerships with unique inventory needs
vehicle importers and wholesalers: companies managing transit and storage risks
service and repair workshops: businesses covering equipment, customer vehicles, and public liability
Comprehensive coverage ensures these stakeholders can protect their assets and maintain business continuity.
Automotive dealerships require comprehensive insurance coverage to protect against various risks. Common coverage options include:
motor vehicle stock cover: protects against loss or damage to vehicles held for sale
public and product liability insurance: covers legal liabilities arising from third-party injuries or property damage occurring on dealership premises
business interruption insurance: compensates for lost income due to unforeseen events that disrupt normal business operations
theft and burglary cover: provides protection against losses resulting from theft or burglary incidents
glass cover: covers the cost of repairing or replacing damaged glass on the premises
Choosing the right insurance guarantees that dealerships stay protected and keep operating smoothly.
This insurance provides protection for clients by covering risks tied to dealership operations. Examples include:
test drive incidents: covers repair costs if a dealership vehicle is damaged during a client’s test drive
service-related damages: pays for damages to customer vehicles while at the dealership for servicing
theft or loss: compensates clients if their property is stolen or lost on dealership premises
Automotive dealerships insurance helps build confidence by ensuring clients are not financially impacted by unexpected events.
