What is required from a dealer regarding insurance for their vehicles?

Dealers are required to have insurance coverage for their vehicles, which can be fulfilled by either self-insurance or traditional insurance. This requirement ensures that there is a financial safety net in place for potential liabilities related to the vehicles held by the dealership. Insurance protects against various risks, including damage, theft, and liability claims arising from accidents involving the vehicles.

Relying solely on personal insurance would not meet the regulatory requirements necessary for operating a dealership, as personal policies typically do not provide coverage for business-related activities. Additionally, the notion that dealers could be exempt from having insurance does not align with best practices or legal standards in the automotive industry, as it could leave both the dealer and the public vulnerable in case of incidents. Lastly, limiting insurance coverage only to new vehicles would also fall short, as all vehicles in a dealership's inventory—regardless of their age—potentially face similar risks that necessitate comprehensive insurance coverage. Thus, having self-insurance or an appropriate insurance policy is crucial for compliance and protection.