Friday, May 18, 2012

Car Dealers Insurance – What If You Knew When A Hail Storm Was Going To Hit Your Lot?


With over 300 different car dealers insured with us, we see a lot of hail damage claims.  Many of these storms can quickly generate thousands of dollars in damage in mere minutes.   What if you had a warning that would give you the time that you need to get your most valuable cars out of harm’s way before a hailstorm hits your lot?  How much money would that save you in deductible costs, and how much headache and time would you save in repair efforts?  Now there is a way to know exactly when your inventory is at risk as well as a way to know when the more general warnings on the radio and television don’t actually apply to your dealership.

AccuWeather has developed a new service that they call SkyGuard.  Skyguard puts meteorologists at work evaluating the weather risks for your lot’s specific longitude and latitude.  They will inform you if your inventory is at risk and give you the time you need to move your highest valued inventory into a safe location.  In addition, you will also know when a more general warning really won’t affect your specific location so you can rest easy when you see the weather warning scrolling across your television set.  These warning notifications can be sent to you by both text and email and SkyGuard will follow up with you until they receive a receipt that you received the message.

Skyguard aims for a minimum notice of 30 minutes for hail storms.  They can also warn you of tornadoes, lightning, rainfall, flash flooding, snow, high winds or ice if any of these pose a risk to your business.   They can customize your warning criteria so that you can choose exactly the information that you need to know.
Of course all the warnings in the world aren’t going to be much help to you if you don’t have a safe place to park your most valuable inventory before the storm arrives.  But if you do have some expensive inventory items and a safe place where you could park them in the event of a storm, then you might want to consider this service for your used car dealership.   As of this time I am not aware of a dealers insurance policy that provides any premium reduction for dealers who purchase this service, but I feel that eventually this kind of warning service will be subsidized in some way by your insurance company.  When that time comes, I will certainly blog about it to let you know.

While we are discussing hail damage to dealer inventory, it is a good to remind you that if you carry co comprehensive coverage on your inventory, then you will more than likely face a pretty large deductible in the event of a hail storm that hits your lot.  The reason for this is that most comprehensive deductibles on dealers insurance policies are structured so that you have a per vehicle deductible that usually caps out at 5 vehicles.   This can creep up to a large number in the event of widespread damage to your inventory.   Most of our dealers insurance policies are different though and have only a per loss deductible.    An example might help you see why this matters so much.  Assume that you have a $500 comprehensive deductible with a 5 car limit on that deductible on your policy.  After your lot is hit by hail, you will have to pay a $500 deductible on the first five cars that were damaged for a total of $2500.  If you had instead chosen a per loss deductible, then you would only be paying for the first $500 of damage in this same loss scenario.

Clinard Insurance Group, located in Winston Salem, NC, is very active in dealers insurance.  Currently we insure more than 300 used car dealerships all across North Carolina, South Carolina, Georgia, Tennessee and Virginia.  We want all used car dealers to be informed consumers when it comes to buying insurance for their dealership.  If you would like help with your dealers insurance, please visit us on the web at www.TheAutoDealersHelper.com or call us, toll free, at 877-687-7557.

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