Owners and managers have quite a few things to consider when it comes to choosing the proper car dealer insurance. First they should shop for insurance that pertains to the types of cars they sell. Used car dealerships can expect to pay much less than dealerships offering both new and used cars, based on the estimated valuation of the average number of cars on the lot and in the showroom. Dealers of exotic cars can have higher premiums although this may be compensated by the fact that they tend to have a lower average number of cars. Motorcycle dealers may also tend to require less expensive insurance, except for the fact that the density of motorcycles is often very high, and the ease of moving a motorcycle is a lot less. Other types of specialty insurances deal with dealerships that sell recreational vehicle and trailers, truck dealers, boat dealers, and bus dealers. Each of these have their various insurance premiums designed for the dealership stock valuation as well as other risk factors.

There are several important components of an effective insurance policy. These include liability to truth in lending, where the dealership is covered in the event of unintentional errors or deliberate omissions. It also covers liability due from fraud in relation to the federal odometer settings and the associated valuations. These are some of the components of an effective car dealer insurance.