Running a used car lot in Oklahoma isn’t easy. You’re dealing with test drives that don’t always come back clean, surprise hailstorms, walk-in customers, and paperwork that has to be perfect.

You’re not just selling cars—you’re managing risk every single day. And without the right insurance, one unexpected event can cost you everything you’ve worked for.

This guide breaks down the coverages that matter most for used car dealerships across Oklahoma—from Tulsa to Altus and everywhere in between.

• Test Drives – One bad turn and your truck’s in a ditch.
• Customer Accidents – Oil spots or uneven pavement can lead to injury claims.
• Oklahoma Weather – Tornadoes, hail, and strong winds are regular guests.
• Theft or Vandalism – Open lots can be targets after hours.
• Paperwork Problems – One wrong title or missed disclosure can lead to legal action.

✅ Garage Liability Insurance

What it covers: This protects you if your business causes bodily injury or property damage—especially during test drives.

Even if a customer crashes during a test drive, you’re on the hook. This coverage helps pay for the other driver’s repairs or medical bills.

Example: A customer test-drives your pickup and rear-ends another car. Garage liability helps cover the third party’s damages so you’re not writing a check yourself.

Note: This won’t pay for damage to your own vehicle being test-driven. That’s what Dealers Open Lot coverage is for.

✅ Garagekeepers Insurance

What it covers: Vehicles on your lot that you don’t own—like trade-ins, consignment cars, or customer vehicles in for service.

If something happens while those vehicles are in your care, this coverage helps pay to repair or replace them.

Coverage Options (and Why They Matter):

🧾 Legal Liability

You’re only covered if the damage is your fault. If someone breaks in overnight and trashes a car? No coverage. If your employee forgets to lock the doors and it’s stolen? That’s on you—and this policy pays.

Best for: Dealers who rarely store customer cars and want a basic option.

📄 Direct Excess

This pays after the customer’s own insurance is used. It’s a backup. You’re still covered—but not until their policy is applied first.

Best for: Lots with moderate customer vehicle exposure that want more than bare minimum coverage.

🛡 Direct Primary

This is the best coverage. It pays first, no matter who’s at fault or what the customer’s insurance says.

• No arguing.
• No waiting on the customer to file a claim.
• Just fast resolution.

Example: A hailstorm dents four trade-ins left on your lot. With Direct Primary, you handle the claim and repairs quickly—no finger-pointing or delays.

Best for: Dealers with overnight storage, high traffic, or exposure to Oklahoma weather.

✅ Dealers Open Lot (DOL) Coverage

What it covers: The cars you own—the ones you’re actively selling. It protects your inventory from hail, fire, theft, vandalism, and collisions.

Tip: This policy is based on your total inventory value. Update it regularly to avoid being underinsured.

Example: A storm hits Moore and damages 30 vehicles on your lot. DOL coverage pays to repair or replace them—so you can restock and stay open.

✅ Commercial Auto Insurance

What it covers: Vehicles you use for business—like shuttle vans, auction haulers, or parts runners.

Example: Your delivery van is rear-ended on the way to Norman. This policy covers the damage and helps with medical bills or legal claims.

Personal auto policies won’t cover business use. If the vehicle is titled to your business or used on the job, you need commercial auto.

✅ Errors & Omissions (E&O) Insurance

What it covers: Paperwork mistakes, missing disclosures, or misunderstandings that lead to legal trouble.

Example: A buyer says you didn’t tell them about a branded title. Whether it was a true error or a miscommunication, E&O pays for your defense and any settlements.

This protects your business reputation—and your wallet.

✅ Smart Add-Ons You Should Consider

• False Pretense Coverage – Protects you when someone poses as a buyer and steals a vehicle.
• Title Bond Insurance – Covers claims tied to missing or incorrect vehicle titles.
• Business Interruption Insurance – Replaces lost income if your operations shut down due to fire, storm, or vandalism.
• Hired and Non-Owned Auto – Covers vehicles your business doesn’t own—like employee cars used on the job or short-term rentals.

Oklahoma is a rate-and-file state. That means insurers can change prices fast—especially after a bad hail season or when crime rates shift.

Working with a local insurance expert gives you:

• Real insight into pricing in places like Tulsa, Altus, Enid, Lawton, and Broken Bow
• Experience handling storm and theft claims
• Advice tailored to Oklahoma’s dealer regulations—not generic national info

We’ve worked with used car dealers across Oklahoma and Texas for over 20 years. From family-owned lots to franchise groups, we know the business, the risks, and the coverages that actually matter.

No fluff. No upselling. Just insurance that fits.

📞 Let’s Keep Your Dealership on the Road

• Call us: 405-733-2886
• Email: steven@conwayinsuranceok.com
• Schedule a Call with Us
• Visit Our Website

Running a car lot in Oklahoma takes grit, hustle, and a lot of moving parts. Let’s make sure insurance isn’t something you have to worry about.

Because in Oklahoma, it’s not if something happens. It’s when.