Insurance gaps can expose your dealership to lawsuits, inventory losses, regulatory penalties, and unexpected financial hardship. This comprehensive guide explains the seven most common insurance mistakes made by independent auto dealers, including inadequate liability coverage, failing to carry Dealer Open Lot Insurance, letting dealer bonds expire, ignoring cyber risks, and not updating insurance as your business grows. Learn how to protect your dealership and avoid costly

Garage liability insurance is essential for car dealerships, protecting against bodily injury, property damage, and personal or advertising injury claims. It covers accidents on your lot, incidents during test drives, and damages caused by your operations, helping dealerships stay compliant and financially secure. However, it does not cover damage to your own inventory, customer vehicles in your care, employee injuries, or building/equipment damage—these require additional co