TL;DR
Auto dealer insurance is specialized commercial coverage for car dealerships — and dealers who lease or rent used cars have exposures a standard policy simply won’t cover. Northland Auto Solutions has built dealer-specific programs since 1990, including Collateral Protection Insurance (CPI), excess contingent liability, daily rental insurance, garage insurance, and dealer bonds. Based in Burnsville, MN and serving dealers nationwide. Request a quote or call 800-879-3433.
Running a used-car dealership means managing risk that a typical business owner never thinks about. When you finance, lease, or rent vehicles, your money is riding around in cars you don’t control — driven by customers whose insurance may lapse, whose accidents can come back on you, and whose coverage gaps can turn a single claim into a serious loss. That’s exactly why auto dealer insurance exists, and why generic commercial policies fall short for dealers in the leasing and rental business.
Since 1990, Northland Auto Solutions has specialized in insurance for car dealerships that lease and rent used cars. We’re not a general agency that also happens to write a few dealer policies — dealers are our entire focus. Below, we break down the coverages that protect an independent dealership, who needs them, and how the right program keeps your inventory, your customers, and your bottom line protected.
Why Used-Car Dealers Need Specialized Insurance
A standard commercial auto policy is built for a company that owns a fleet and employs the drivers. A dealership that leases or rents to the public is a completely different animal. Your vehicles leave the lot in the hands of customers, and the financial responsibility for those vehicles — and the liability that comes with them — doesn’t neatly transfer with the keys.
Consider the most common gap: lease and buy-here-pay-here (BHPH) agreements typically require the customer to carry full coverage, including liability and comprehensive/collision. In practice, many customers carry liability but let their comp/collision lapse — leaving the physical-damage risk on your asset. Multiply that across a lot of 20, 50, or 100 vehicles and the exposure is real. Used car dealer insurance is designed to close these gaps, not just check a box for licensing.
The Core Coverages Every Dealer Should Know
Northland’s dealer programs are modular, so you build the protection your operation actually needs. Here are the pillars.
Collateral Protection Insurance (Coverage Plus)
Our Coverage Plus program delivers Collateral Protection Insurance (CPI) — the answer to the lapsed-coverage problem above. When a lease or BHPH customer fails to maintain the physical-damage coverage their agreement requires, CPI protects your interest in the vehicle. It’s one of the most valuable tools an independent dealer can offer, protecting your collateral while keeping deals on the road.
Excess Contingent Liability Insurance
If a customer driving your vehicle is in a serious accident, could the loss land on you? With Excess Contingent Liability Insurance, you’re part of a national insurance policy where reasonable losses aren’t counted against you. You’re covered over and above the customer’s own liability insurance by up to $1,000,000 in contingent excess liability, with up to $35,000 in physical damage available depending on your coverage level — plus ongoing tracking of your customers’ insurance status.
Daily Rental Insurance
Running a rental operation? Daily Rental Insurance provides contingent liability and/or full-coverage options through top A-rated carriers. The business coverage is contingent to the renter using their own personal policy, with a limit of liability for the business of $1,000,000 — so a single rental doesn’t put your whole operation at risk.
Garage Insurance
If you sell or repair cars, you likely need Garage Insurance. Northland designs policies around your specific operation, shopping A-rated markets to find coverage that fits how your dealership actually runs rather than a one-size-fits-all package.
Dealer & Surety Bonds
Whether you’re obtaining your dealer’s license or shopping for a better rate, dealer surety bonds and title bonds are part of doing business — and we provide them to dealers across the United States. A surety bond guarantees your dealership will comply with industry regulations and signals your commitment to ethical operation.
Who This Coverage Is For
Northland’s auto dealer insurance is built for the independent side of the industry: used-car dealers, buy-here-pay-here and lease-to-own operators, and daily rental businesses. Whether you’re a small dealer with 18 units on the plan or a growing operation adding a rental line, the coverages scale with you. If your dealership is in the business of leasing and/or renting used cars, you’re exactly who these programs were designed to protect.
Because we work with dealers all day, we also understand the state laws and compliance details that trip up general agents. Many clients tell us the biggest value isn’t just the policy — it’s having a partner who knows the leasing and rental business well enough to give solid guidance when a tricky question comes up.
Protection That Works With the Rest of Your Dealership
Insurance is one piece of a healthy dealership. Northland pairs coverage with the tools that reduce risk and grow profit in the first place — including GPS tracking devices with 24/7 vehicle location, tow detection, and optional starter-disable for BHPH and rental fleets; our Lease’T’Own® used-car leasing program; daily car rental programs; and vehicle funding. When your protection, technology, and financing come from one dealer-focused partner, everything works together.
Why Dealers Choose Northland
Founded in 1990 and based in Burnsville, MN, Northland Auto Solutions has spent more than three decades focused on one thing: helping dealers who lease and rent used cars increase sales, protect their assets, and grow their bottom line. We partner with top A-rated insurance companies, serve dealers nationwide, and pride ourselves on being genuinely easy to work with. There are plenty of agencies that can sell you a policy; there are very few that live and breathe the used-car leasing and rental business the way we do.
Ready to protect your dealership with coverage built for how you actually operate? Contact Northland Auto Solutions or call 800-879-3433 to talk with a dealer-insurance specialist.
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This page is general information about dealer insurance programs, not insurance or legal advice. Coverage terms, limits, and availability vary by policy, state, and eligibility. Contact Northland to confirm what applies to your dealership.
Frequently Asked Questions
What is auto dealer insurance?
Auto dealer insurance is specialized commercial coverage that protects a car dealership’s vehicles, operations, and liability. For dealers who lease and rent used cars, it includes collateral protection (CPI), contingent liability, daily rental insurance, garage insurance, and dealer bonds.
Do used car dealers need special insurance?
Yes. Dealers who finance, lease, or rent used cars face risks a standard policy doesn’t cover — such as a customer letting their comp/collision lapse. Programs like Collateral Protection Insurance and excess contingent liability are built for these exposures.
What is Collateral Protection Insurance (CPI)?
CPI, offered through Northland’s Coverage Plus program, protects the dealer’s interest in a financed or leased vehicle when the customer fails to maintain the full-coverage insurance their agreement requires — covering the physical-damage gap dealers often face.
Does Northland offer dealer bonds?
Yes. Northland provides dealer surety bonds and title bonds to dealers across the United States, whether you’re obtaining your dealer license or shopping for better rates.
Where is Northland Auto Solutions located?
Northland is based at 850 East Cliff Road, Burnsville, MN 55337, and has served automotive dealers since 1990. Call 800-879-3433 or contact us to get started.