What Happens If a Dealership Damages Your Car?

March 7, 2024

Whether your car is in for service or being sold, dealerships should have insurance that covers any damage to vehicles they own. This includes damage caused by employees and the vehicles themselves. However, what happens if the dealership damages your vehicle and refuses to admit responsibility? You may have to get a lawyer involved.

If the Dealership Damages Your Car

While many dealerships are honest and try to fix any damage, some have little regard for their customers’ cars. Some are even guilty of committing auto fraud, which can lead to a civil lawsuit. If the dealer knowingly misrepresented the history of your vehicle, you should seek consultation with an experienced attorney in New Jersey or Monmouth County as soon as possible.

In some cases, you may not need to involve the dealership’s insurance company. Most dealerships have their own commercial auto insurance policies that apply to vehicles as soon as they drive onto the lot. This insurance can cover accidents, vandalism, or theft that occurs on the premises, including when the dealership is storing your car in their garage or while it’s on their lot for a test drive or inspection.

The dealership’s insurance might also have a special coverage called “dealer open-lot coverage” or “dealer physical damage coverage.” This type of insurance covers the dealer’s vehicles against any risks that can occur on their lots, such as accidents, theft, or natural disasters. This is a separate policy from the standard liability insurance that comes with your vehicle, which only covers damage you cause.


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