Why Dealerships Should Stop Buying Insurance on Price Alone
For many auto, RV, and equipment dealerships, insurance has traditionally been treated as a cost to minimize. But in today’s environment, that mindset is changing. Rising claims, weather volatility, and evolving risks are forcing dealers to rethink their approach.
In this episode of the Accel Advantage Podcast, Corey Rekers, Ethan Thompson, and Kaleb Admire share why leading dealerships are shifting from price shopping to a more strategic, risk-focused model.
Insurance Is More Than a Cost
Dealerships carry significant exposure:
- High-value inventory and property
- Employee and driver liability
- Increasing reconstruction costs
- Emerging risks like fraud and EV infrastructure
Because of this, insurance should be viewed as balance sheet protection, not just an expense. Dealers who focus only on price often face coverage gaps, inconsistent pricing, and weaker carrier relationships.
The Problem With Shopping Every Year
Many dealerships still treat renewals like a bidding war. While this may create short-term savings, it can hurt long-term results.
Frequent shopping can lead to:
- Reduced interest from insurance carriers
- Less competitive terms over time
- A weaker underwriting position
Dealers that perform best in this market focus on building a strong risk profile and long-term partnerships instead of chasing the lowest price annually.
2026 Market Trends
After several years of rising premiums, the insurance market is beginning to stabilize.
- Property rates remain elevated, especially in hail-prone areas
- Liability lines are stabilizing or decreasing in some cases
- Workers’ compensation continues to trend downward
While conditions are improving, pressure remains in key areas like property and umbrella coverage.
Higher Deductibles Are the New Normal
One of the biggest shifts is the move from flat deductibles to percentage-based deductibles, particularly for wind and hail.
This means dealerships are taking on more risk and need to be more intentional about how they manage it.
Parametric Insurance as a Solution
To address larger deductibles, some dealers are using parametric insurance. These policies pay based on a weather event—such as hail size—rather than actual damage.
This approach can help:
- Offset large deductibles
- Provide faster payouts
- Improve cash flow after major events
It’s not the right fit for every dealer, but it’s becoming a valuable tool in the right situations.
Transport Fraud Is Rising
A growing concern in the industry is transport fraud, where fraudulent carriers intercept vehicles during shipment.
To reduce risk, dealerships should:
- Verify carrier credentials and insurance
- Confirm driver identity
- Use trusted transport partners
- Establish clear internal procedures
This type of fraud is increasing and can result in significant losses if not addressed.
Umbrella Coverage and Litigation Risk
Large legal verdicts are putting pressure on umbrella policies. In some cases, higher limits can make dealerships a larger target in litigation.
It’s critical to ensure:
- Coverage is properly structured
- Underlying policies align correctly
- Limits are appropriate for the exposure
More coverage is not always better – structure matters.
Driver Controls Still Matter
Driver-related risk remains one of the most common exposures for dealerships.
Best practices include:
- Regular motor vehicle record (MVR) checks
- Written driver policies
- Clear eligibility standards
- Consistent documentation
Strong internal controls can reduce claims and improve long-term insurability.
A Better Approach: Strategy Over Price
Dealerships that succeed in today’s environment take a proactive approach. They:
- Partner with industry specialists
- Build long-term carrier relationships
- Focus on risk management, not just premiums
Instead of asking, “What’s the cheapest option?” they focus on protecting their business over time.
The insurance landscape for dealerships is evolving. Relying on price alone is no longer an effective strategy.
If you’re ready to move beyond price shopping and build a smarter insurance strategy, it starts with the right partner.
Kaleb Admire works directly with dealerships across the Midwest, bringing real-world dealership experience and specialized insurance expertise to help owners better manage risk, control long-term costs, and protect their business.
Whether you’re evaluating your current coverage, concerned about rising deductibles, or looking for a more strategic approach, Kaleb can help you identify opportunities and build a plan tailored to your operation.
Contact Kaleb Admire today to start the conversation.
Email:
Phone: 515-207-7569
Listen to the Full Podcast Episode
This recap is just scratching the surface! In the full episode, Ethan Thompson and Kaleb Admire share more real-life stories and actionable strategies. To hear the conversation, check out The Accel Advantage Podcast on your favorite streaming platform.
- Search The Accel Advantage on all platforms (Spotify, Apple Podcast, Youtube, Amazon Music, iHeartRadio, and more)
Read the accessible transcript here: Episode Transcript. We provide transcripts to ensure accessibility and a better user experience for all visitors.
If you’re interested in working with an insurance agency that truly understands your industry, get a quote today. We’re here to help you build a safer and more resilient business.