A Dealer Plate Insurance Story that You Will Never 4-get!

Here is a true story that I recently heard from a used car dealer customer in the Sacramento, California area. For the sake of not exposing this person’s identity, I’ll conceal the specific details, but the story is important and should be taken into consideration if you are a used auto dealer.

Mike Ramos


Dealer Plate Insurance Expert


It was a gorgeous Friday morning for “Dave the Dealer” since he felt it in his bones that he was going to cash-in on a car he just purchased from the auction yesterday. The sun was shining brighter than ever, the birds were chirping just a bit louder, and he could smell the money in the air.


With quality inventory being harder than ever to acquire, Dave had high hopes for this newer-model Accord. This beauty didn’t need any reconditioning – only a quick wash, and the marketing on it would be a breeze!


Traffic was a little heavier than usual, so Dave decided to reroute. But no worries; he would be on the freeway soon where he could open it up and see what this puppy was all about. He leaned down to grab his warm coffee from the center console and took a long, satisfying drink. As soon as he replaced the insulated tumbler, Dave was rear-ended, causing him to hit the vehicle in front of him.


First things first; let’s forget about the car, everyone involved was alive! The car Dave rear-ended contained 2 people who were both hurt, but nothing life-threatening. Dave was fine and so was the person who instigated the entire collision.


Then the thought shot through Dave’s mind…I hope this person’s insurance will cover all this damage! But no more than 2 seconds passed when he was met with the alarming realization that he didn’t have a dealer insurance policy on his inventory vehicle. Of course, he had a Geico insurance policy covering his wife and their personal cars, but at that moment he knew that his beautiful Accord would not be insured.


He declined to purchase dealer plate insurance because it was too expensive. What a nightmare! Cars zipped passed but nothing seems to snap Dave out of his lifeless state of disbelief until the police showed up.

Dealer Plate Insurance Experts

“All right, what happened here?” Officer Jackson was stern yet curious. “We’ve got a report of a multiple car collision with potential injuries.” As soon as the last word left Officer Jackson’s mouth, the ambulance pulled up and whisked the two injured people away to the hospital.


Despite having an intensely sick feeling in his stomach, Dave pulled a business card out of his shirt pocket and handed it to Officer Jackson. “Hello officer, I’m a licensed used car dealer and this is my inventory vehicle. I was rear-ended and then pushed into the car in front of me.” The person that rear-ended him confirmed the chain of events so everything seemed to be fine.


Officer Jackson asked for driver’s licenses, insurance cards, and registration. He knew that a used car dealer with a newly purchased inventory vehicle wouldn’t have the registration so he told Dave that he would settle for his Bill of Sale or any other available proof of purchase document.


The rest of the story is one that I hear of a little more often, but it usually doesn’t involve an auto accident. It does however involve a used auto dealer being pulled over in their inventory vehicle without proper insurance in place. Dave the Dealer’s story should serve as a warning to not take unwise risks. The police are trained to spot dealer-plated vehicles, which indicates a vehicle did not pay the normal DMV fees and is likely to be uninsured.


Plate insurance for a used car dealer business is complex and expensive. But no need to fear! YCDB is here to offer great protection at more than a fair price. Our solution is simple – we give you an easy way to protect your inventory today!


You don’t have to worry about the liability of selling cars without dealer plate insurance or the risk of getting into an accident while on a test drive. We also offer protection for your inventory, so you can focus on what you do best, sell more cars!

Dealer Insurance

Here are 2 short videos that might interest you if you are a used car dealer:

Here’s how one of the main dealer insurance penalties works against you…



And this video is a must if you test any potential inventory (prior to purchase)…



Glad to help in any way possible. Give us a shout today if you have any dealer-related insurance questions…866-357-4405.

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