Garage Insurance - Used Car Dealers and Repair Shops Watch Those Symbols

As I mentioned earlier, both types of businesses, auto repair and or body shops and used car dealers both need the garage policy. But exactly what kind of operations are covered in these policies is driven by the symbols shown on the policy. This is very important. If your business is automotive repair or body work but your policy is set up with symbols that would apply to a car dealership, you could find yourself without coverage in the event of a liability loss.

So how do you know if you have the correct symbols and thus the correct form? Pull out your garage policy and look at the first page.   Beside each type of coverage, usually to the left, there will be a least one two digit number between 21 and 31. These symbols will describe what is protected by the coverage shown beside that symbol. Here is a list of the most common symbols and what each one protects:

Symbol 21 Any auto
Symbol 22 All owned autos
Symbol 23 Owned private passenger autos only
Symbol 24 Owned autos other than private passenger
Symbol 25 Owned autos subject to no fault laws
Symbol 26 Owned autos subject to Uninsured Motorists law
Symbol 27 Specifically described autos
Symbol 28 Hired autos only
Symbol 29 Non-Owned autos used in the Garage Business
Symbol 30 Autos Left for Service/Repair/Storage
Symbol 31 Autos on Consignment

As you have probably figured out, if you are an automobile dealer and you have symbol 30 on your policy, you would find yourself without coverage. So why not just put symbol 21 on all coverages? Well, since code 21 is the broadest coverage, you would have to pay more for this insurance policy and in some cases you might be purchasing insurance protection that you didn't really need.

Take some time to look at your policy carefully and review the symbols for each line of coverage to make sure that they are appropriate for the work you do. If you need help with this process, consult your agent. If you agent doesn't specialize in businesses needing garage policy, ie dealers insurance and auto repair shop insurance, then find one who does. This protection is just too important to leave up to an agent who is practicing on the job learning on your policies.

Wake Clinard is the President of Clinard Insurance Group, a full service insurance agency located in Winston Salem, NC. Wake is dedicated to helping businesses involved in the automobile industry from used car dealers to repair and body shops to auto parts stores. Clinard Insurance is the go to market for used car dealers in North Carolina, South Carolina, Georgia, Tennessee and Virginia.