Commercial Auto & Dealer Plate Insurance
Drive-away, loaner, dealer-plate, and owned-service-vehicle exposures — the coverage for vehicles your dealership operates on the road.
A dealership puts vehicles on public roads constantly: dealer-plated units on test drives and drive-aways, loaner and service-loaner vehicles, shuttle vans, parts trucks, and the odd wrecker. Commercial auto and dealer-plate coverage is the piece that responds when one of those vehicles is in an accident on the road. For most dealers, the auto-liability side lives inside the garage policy, while owned non-inventory vehicles and specialized loaner programs are handled with dedicated commercial auto coverage.
Dealer plates are a particular focus. Every plate you have in circulation represents a vehicle that can be driven by staff or customers, and states regulate who may use them and for what. Structuring coverage so every legitimate dealer-plate use is protected — and so a personal-use misuse doesn't create an uninsured gap — is a core part of a dealer program.
What it covers
- Liability for dealer-plated vehicles on test drives and drive-aways
- Loaner and service-loaner vehicle exposure
- Dealership-owned service, parts, and shuttle vehicles
- Physical damage on scheduled owned vehicles
- Hired and non-owned auto exposure where needed
- Drive-away and transporter risk for wholesale units
How dealer plates are insured
A dealer plate lets the dealership legally operate an unregistered vehicle from inventory — for demonstration, drive-away, and business use. The garage policy's auto-liability generally follows the plate and the permitted driver, which is why the number of dealer plates you carry is a rating factor. States set rules on who may drive a dealer-plated vehicle and for what purpose; personal use by family members or unauthorized drivers is a common way dealers accidentally step outside coverage.
We make sure your program contemplates how your plates are actually used and coach you on keeping that use inside the lines so a routine drive-away is never an uninsured surprise.
- Dealer-plate liability follows permitted business use
- Number of plates is a key rating factor
- State rules govern who may drive and why
- Loaner and demo use structured into the program
Loaner and service-loaner programs
Franchise and larger independent dealers often run loaner fleets so service customers stay mobile. Loaner vehicles are a distinct exposure: they're driven by customers, off-premises, for days at a time. Coverage needs to address liability while the customer drives, physical damage to the loaner, and how your coverage coordinates with the customer's own auto policy. A poorly structured loaner program can leave the dealership primary for accidents it never sees coming.
Owned service vehicles and hired/non-owned auto
Parts trucks, shuttle vans, and wreckers that the dealership owns and titles are typically scheduled on commercial auto rather than run through the inventory side. And any time an employee runs an errand in their own car on dealership business, a hired-and-non-owned auto (HNOA) exposure exists that the dealership can be pulled into. We round these out so the road-going side of your operation is fully covered, not just the lot.
Who needs this coverage
- Dealers issuing dealer plates to staff
- Dealerships running loaner or service-loaner programs
- Dealers with owned parts, shuttle, or service trucks
- Wholesale dealers driving units between locations
- Any dealer with employees driving on company business
What drives your cost
Commercial Auto & Dealer Plates questions, answered
For inventory and dealer-plated vehicles, the auto-liability exposure usually lives inside your garage policy. Separate commercial auto is used for owned non-inventory vehicles — parts trucks, shuttles, wreckers — and to structure loaner programs and hired/non-owned exposure. We coordinate both so there's no gap.
State rules vary, but dealer plates are generally limited to business use by the dealer, employees, and customers on permitted test drives or demos. Personal use by unauthorized drivers is a common way dealers fall outside coverage — we help you keep plate use compliant.
They can be, but loaners are a distinct exposure because customers drive them off-premises. Coverage needs to address liability while the customer drives, physical damage to the loaner, and coordination with the customer's own policy. We structure loaner programs specifically.
It protects the dealership when an employee drives a vehicle the business doesn't own — a rental or their personal car — on company business and causes an accident. Any dealership whose staff run errands or make deliveries should carry it.
Related coverages
Placing commercial auto & dealer plates through a dealer specialist
Commercial Auto & Dealer Plates rarely sits in isolation — it works alongside the rest of your dealer program, and getting the coordination right is where a specialist matters. As a Contractors Choice Agency program focused entirely on auto dealers, we structure your commercial auto & dealer plates so it lines up cleanly with your garage liability, your inventory coverage, and any umbrella above it — no overlapping premium you pay twice for, and no gap where a loss could fall between policies.
We shop your risk to A-rated carriers that genuinely want dealer business, present your operation in the best possible light to earn better pricing, and stay in your corner at renewal and at claim time. Whether you run a single independent lot or a multi-rooftop franchise group, in any of the 50 states, we'll right-size this coverage to how you actually operate rather than handing you a generic quote.
Tell us about your lot
Dealer type, inventory, and the coverages you need — by form or a quick call.
We build the program
We structure commercial auto & dealer plates and the rest of your account with the right carriers.
Bind and get certs
Review, bind, and receive the certificates your board, lender, and manufacturer require.
Ready to quote commercial auto & dealer plates?
Tell us about your dealership and we'll build a program that fits how you actually operate — often with same-day turnaround.