As the year wraps up, used auto dealers look closely at their financial performance, operational gaps, and plans for the months ahead. It’s the perfect time for insurance retailers to step in with guidance. Reviewing used car dealer insurance programs helps clients strengthen their footing before the new year begins.
Year-end planning isn’t only about balancing the books. Dealerships begin forecasting inventory levels, evaluating service center growth, and revisiting cost-control strategies. These same areas also signal where insurance needs may shift.
Why the New Year Is the Best Time for an Insurance Review
Insurance planning fits naturally into the same year-end conversations dealers already have about expenses, risk exposures, and operational efficiency. Retailers can step in to help clients understand how coverage updates support broader financial goals.
Common priorities that align with a policy review include:
- Adjusting insurance limits to match new inventory levels
- Addressing rising fraud, cyber threats, and impersonation schemes
- Reviewing service center expansions and related exposures
- Planning for winter, severe weather, or regional risk trends
- Seeking cost stability without sacrificing protection
By linking insurance strategies to dealer priorities, retailers can become trusted advisors throughout the year.
Key Coverage Areas To Reassess for 2026
As retailers help clients plan for 2026, the most productive conversations focus on what changed over the past year, not just what’s already in the binder. Here are some unique angles to explore with your dealer clients.
Changes in the Service Department
Used car dealers may expand their service operations to increase revenue. Perhaps they added more bays, hired new technicians, or began handling more repairs in-house.
Any of these changes can increase the chances of accidents, customer vehicle damage, or equipment issues. This is a good time to verify whether the coverage that protects the service department still aligns with the way the dealership operates today.
Bigger or More Expensive Inventory
When the market shifts, dealers might add to their inventories. A lot that held 60 cars in the spring may hold 120 by December. Newer, higher-value vehicles can also increase the financial risk if something goes wrong.
Before the new year, retailers should help dealers confirm that their inventory coverage reflects what’s actually on the lot, not what was there months ago.
Increasing Fraud and Scam Activity
Dealers continue to face more sophisticated fraud attempts, ranging from online car scams fueled by artificial intelligence to payment scams and identity impersonation. And while one survey found that auto dealers cite fraud as their biggest concern, less than half have invested in technology to help mitigate fraud risks.
With cybercrime on the rise, retailers can help dealers understand how crime and cyber liability coverages can respond to these situations and determine whether to update policies.
Rising Costs in Repairs and Equipment
Repair costs have jumped 43% since 2019, according to data from Synchrony Financial. Dealers are feeling this increase for three main reasons:
- Today’s vehicles have more complex technology.
- Customers are holding on to their cars for longer.
- Repair shops continue to experience talent shortages.
For insurance retailers, these realities create an easy conversation point at year-end. If the cost to fix or replace equipment or to repair a damaged vehicle is rising, coverage limits from even a year ago may no longer be enough. A quick review of the used car dealer insurance programs can help dealers avoid being underinsured if a major tool breaks, a vehicle is damaged during repairs, or an equipment failure disrupts operations.
How Insurance Retailers Can Lead Better Year-End Conversations
Retailers can make these discussions more productive by focusing on clear, actionable checkpoints, such as:
- Reviewing limits based on updated inventory values
- Evaluating any service center expansion
- Identifying new cyber, fraud, or impersonation exposures
- Ensuring property and liability coverages align with real operations
- Recommending enhancements or endorsements based on 2025 claim trends
By partnering with Aegis General Insurance Agency, retailers can connect clients to specialized solutions built for auto dealerships, particularly those navigating shifting financial and operational demands.
Are Your Used Auto Dealer Clients Ready for 2026?
Dealers who review their used car dealer insurance now can step into the new year with fewer surprises and stronger financial control. Get in touch with Aegis General Insurance Agency to help them evaluate their coverage and gain a competitive edge as they plan inventory, staffing, and service offerings.
FAQ About Used Car Dealer Insurance Programs
What insurance do car dealers use?
Most rely on a package that includes garage liability, garagekeepers, commercial property, dealers open lot, crime coverage, cyber, and umbrella liability.
What coverage should every used auto dealer review annually?
Inventory limits, property coverage, crime protection, and liability coverages should be reviewed at year-end.
How does insurance planning support year-end financial strategy?
It helps dealerships control costs, reduce claim exposure, and align coverage with operational changes for the coming year.
What risks should used auto dealers be aware of in 2026?
Dealers should prepare for rising fraud risks, cyber threats, service center growth, lot damage from severe weather, and fluctuating inventory values.
About Aegis General Insurance Agency
Aegis General Insurance Agency — Specialty Dealer Division strives to create a leading underwriting and distribution franchise in the program insurance market. We’ve bridged the gap between agents and client payments with our efficient ACH payment system. Partnering with us gives agents the advantage of ACH payment capability, allowing for direct billing through the firm. Call us today at (866) 429-1638 to find out how you could partner with K2 to offer top-tier insurance coverages and modern features to your clients.
