# Insurance for car dealerships, used car and vehicle dealers in Germany

> A car dealership keeps most of its value out in the open: dozens of vehicles on the forecourt, where a single hailstorm can do six figures of damage. On top of that come test drives, transfers on red trade plates and the workshop. This page explains what is compulsory, what else you need and roughly what it costs.

Quelle/Source: https://www.nammert.com/en/business-insurance-car-dealer.php  
Updated: 2026-09-18

## Are the cars on my forecourt insured against hail?

Not through standard contents insurance, which applies to property inside buildings. For stock parked outside you need a separate dealer policy for trade vehicles, often called a motor trade policy (Kfz Handel und Handwerk), or an extension for vehicles in the open that includes hail, storm and theft. Such policies normally set an excess per vehicle and cap the sum insured at each site.

## At a glance

- **Compulsory:** Motor third party liability (Kfz-Haftpflicht) for every registered vehicle, and for red trade plates and short term plates under the Compulsory Insurance Act (Pflichtversicherungsgesetz)
- **Biggest risk:** Hail, storm and theft hitting the vehicles on the forecourt
- **Basic cover from:** around 500 euros a year for one red dealer plate with liability cover
- **Berufsgenossenschaft:** BGHW, the statutory accident insurer for trade, covers the sales side; an attached workshop usually belongs to BGHM, the one for wood and metal trades
- **Often forgotten:** Vehicles kept outdoors: hail and storm on the forecourt are usually not covered by standard contents insurance
- **WZ 2025 / NACE:** 46.71 Großhandel mit Kraftwagen, 46.72 Großhandel mit Kraftwagenteilen und -zubehör, 46.73 Großhandel mit Krafträdern, Kraftradteilen und -zubehör, 47.81 Einzelhandel mit Kraftwagen, 47.82 Einzelhandel mit Kraftwagenteilen und -zubehör, 47.83 Einzelhandel mit Krafträdern, Kraftradteilen und -zubehör

## What goes wrong in this trade

- **Hail on the forecourt:** Ten minutes of bad weather and 40 cars need dent repair. Without cover, the dealer carries the bill.
- **Theft:** Keyless theft overnight, catalytic converters and wheels removed, demonstrator cars that never come back from a test drive.
- **Test drives and transfers:** Accidents with a customer at the wheel and journeys on red trade plates are part of daily business and need their own cover.
- **Workshop mistakes:** A wheel nut left loose, an oil filter forgotten: consequential damage to the customer's car or an accident soon gets expensive.
- **Fire on the premises:** An electric car catching fire in the showroom or a blaze in the workshop damages vehicles, the building and the parts store all at once.
- **Pollution:** Waste oil, fuel and brake fluid can seep into the ground, and the clean up can easily cost more than a new car.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 4, Fire and water 5, Theft 4, Cyber 3, Downtime 3, Health 3

## The insurance you need

- **Fleet insurance** (Essential): Insures demonstrators, red trade plates and short term plates; motor liability is compulsory, and comprehensive cover protects the cars on test drives. https://www.nammert.com/en/insurance-broker-fleet-insurance.php
- **Business liability** (Essential): Covers customers injured on site, workshop mistakes and pollution damage, provided environmental liability and damage to vehicles being worked on are included. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Strongly advised): Replaces parts, tools and fittings and, with an extension, trade vehicles parked outside against hail, storm and theft. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business interruption** (Strongly advised): Pays running costs if the workshop or showroom cannot operate after a fire. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Machinery breakdown** (Depends on the business): For vehicle lifts, diagnostic equipment and the car wash, against breakage, operating errors and defects. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Cyber insurance** (Depends on the business): For the dealer management system, customer data and online vehicle listings, which stop working after an attack. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Commercial buildings** (Depends on the business): For owners of the showroom and workshop buildings, including large glass frontages. https://www.nammert.com/en/insurance-broker-commercial-buildings.php
- **Business legal expenses** (Depends on the business): For disputes with customers over warranty and defects, or with manufacturers and leasing companies. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

For dealerships, the premium depends on the vehicle stock, the number of plates and whether there is a workshop. Cover for the cars on the forecourt is always priced individually.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Fleet insurance | One red dealer plate, liability with 100 million euros cover | around 500 to 700 euros a year including insurance tax |
| Fleet insurance | One red dealer plate with liability and partial comprehensive cover | around 900 euros a year including insurance tax |
| Business liability | Used car dealer with a small workshop and environmental liability | around 400 to 1,500 euros a year |
| Business contents | Parts and fittings worth 150,000 euros | around 400 to 1,000 euros a year |
| Business contents | 30 trade vehicles parked outside, with hail, storm and theft | around 2,000 to 6,000 euros a year |

For comparison: A red plate and public liability for a small used car dealer cost about as much a year as two major services with a cambelt change.

_The premiums for red plates come from publicly advertised offers and include insurance tax. All other figures are guide values excluding insurance tax, as of September 2026; cover for vehicles in the open comes from our own quoting practice and varies widely with region and hail exposure._

- [roteskennzeichen.de: Versicherung für rote Kennzeichen](https://www.roteskennzeichen.de/)
- [betriebshaftpflicht24.de: Betriebshaftpflicht Handel](https://www.betriebshaftpflicht24.de/betriebshaftpflicht-handel-gewerbe-vergleich.html)
- [Versicherungsengel: Kosten der Inhaltsversicherung](https://www.versicherungsengel.de/versicherungen/inhaltsversicherung/kosten)

## Our suggestions: three packages

- **Start** (small used car dealer without a workshop and with one red plate): Fleet insurance, Business liability. Together: around 900 to 2,000 euros a year
- **Sales and workshop** (independent dealer with a workshop, demonstrators and up to 40 vehicles on the forecourt): Fleet insurance, Business liability, Business contents, Business interruption, Machinery breakdown. Together: around 4,000 to 10,000 euros a year
- **Dealership** (franchised dealer with showroom, workshop and large stock): Fleet insurance, Business liability, Business contents, Business interruption, Machinery breakdown, Commercial buildings, Cyber insurance. Together: from around 12,000 euros a year, priced individually

## The worst day at the dealership

Six losses that really happen in the motor trade, all on one Friday in June. Tap through the day and see who pays.

- 04:10: Thieves open two demonstrators with a relay device and drive off. (€78,000, Paid by: Fleet insurance)
- 09:45: A customer on a test drive puts the demonstrator into a crash barrier. (€14,000, Paid by: Fleet insurance)
- 11:30: After a tyre change a wheel comes off on the motorway, and the customer spins into the verge. (€26,000, Paid by: Business liability)
- 14:20: The lift drops on one side and a customer's car falls off. (€9,500, Paid by: Machinery breakdown)
- 16:50: A hailstorm passes over the forecourt and leaves 35 cars dented. (€120,000, Paid by: Business contents)
- 18:15: Waste oil runs into a drain while being decanted, and the contaminated soil has to be dug out. (€18,000, Paid by: Business liability)

**Damage so far:** €265,500

## Practical tips from your broker

- Insure vehicles kept outdoors explicitly against hail, storm and theft, and ask what the excess per vehicle is.
- Agree who is liable on test drives and how high the excess is, and have customers sign a test drive agreement.
- Add environmental liability and environmental damage cover to your public liability as soon as oil, fuel or batteries are on site.
- Keep keys overnight in a shielded safe; many insurers now require this to guard against keyless theft.
- Check the fire safety requirements for electric vehicles in the showroom and workshop, such as spacing and quarantine areas for damaged cars.
- Use red trade plates and short term plates only within the permitted limits, and keep the logbook that comes with them complete.

## Why NAMMERT for your business

- **Vehicle insurance is our daily work:** Boats and trailers are our core business, so hull and liability cover for vehicles is what we do every day. As a broker we compare several insurers for dealer policies and red plates.
- **We handle claims ourselves:** Because we settle boat claims in house, we know how to report a hail loss properly with an assessor's report and photos, so the money arrives quickly.
- **Business, vehicles and family in one place:** Dealer policy, workshop, buildings and your personal cover sit with one contact, reachable on +49 3375 29 12 77.
- **A family business since 1989:** Many dealerships are run by the second or third generation, and so are we. Our advice costs you nothing; the insurer pays our commission.

## FAQ

### Which insurance is compulsory for a car dealership?

Motor third party liability for every registered vehicle, and for red trade plates and short term plates. Public liability is not required by law, but no dealer should go without it.

### What does a red trade plate with insurance cost?

Publicly advertised offers start at around 500 euros a year for liability and come to about 900 euros with partial comprehensive cover, in both cases including insurance tax. The registration office charges its own fees on top.

### Are cars on the forecourt covered against hail?

Only with a dealer policy or an extension for vehicles in the open. Standard contents insurance does not pay for this.

### Who pays for an accident on a test drive?

Damage to third parties is paid by the demonstrator's motor liability, damage to the demonstrator itself by its comprehensive cover. Without comprehensive cover you carry the loss, unless the customer was grossly negligent.

### Is my workshop covered by public liability?

Yes, if repairs and damage to vehicles being worked on are included. Consequential damage to the customer's car and accidents after a repair are then covered, but not the cost of putting the work right.

### Do I need environmental liability cover?

It is strongly advisable as soon as you handle oil, fuel or batteries. It is usually an add on to your public liability policy.

## Request quotes

We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/business-insurance-car-dealer.php#anfrage

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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.