Dealers must have which type of coverage for their vehicles?

Dealers are required to have either self-insurance or insurance coverage for their vehicles to protect themselves, their inventory, and their customers. This type of insurance is essential as it helps cover potential losses caused by accidents, theft, or damage to the vehicles in their possession. By having this coverage, dealers can mitigate financial risks associated with their operations and ensure that they are responsible custodians of the vehicles they sell or service.

Having comprehensive liability insurance alone does not cover the full scope of risks dealers face, and simply not having any coverage could lead to significant liabilities. While comprehensive insurance may protect against specific damages, it's not a blanket requirement for all situations dealers might encounter. Therefore, the inclusion of self-insurance as an option acknowledges that some dealerships may manage their risks through their own financial reserves, as long as they comply with the legal requirements.