If you’ve ever shopped for a used car you are probably a pretty savvy buyer after the experience was over. But did you check the air bag? It turns out that airbags are a quick and easy part for thieves to remove from the car. And since few buyers think to check for this part, most get away scott free.

So how do you know if the car you want to purchase still has an airbag? How do you determine if the airbag will still function correctly?

First of all, you should inspect the steering wheel for signs of tampering. Thieves often leave dings and dents in the interior plastic when they remove the airbags. Another thing you can do is watch the air bag indicator light when you turn on the car. It should glow briefly, then turn off. If the light never comes on, or if it comes on and stays on, then the air bag probably isn’t functioning correctly.

You can also visit the site, www.safercar.gov, and type in the vehicle’s VIN or vehicle identification number to see if one of more of the airbags in the vehicle has been permanently deactivated. Click on “Air Bags”, then under “Air Bag Basics” on the left, click on “Air Bag – VIN number” to search the database. The data at this site may not be complete since the site relies on third parties to report whether an air bag has been removed or disabled. As a last resort, you can have a mechanic you trust inspect the car for air bags.

For the most part, air bags are an “out of site, out of mind” kind of issue. But since replacement could run from $600 to $800 it may be worth your while to consider this issue next time you shop for a used car.

At Clinard Insurance Group in Winston Salem, NC, we want all of our clients to be as safe a possible on the road. We can also help you get the best protection on your home insurance and your auto insurance at rates that will make your head spin. Check us out at www.ClinardInsurance.com or call us toll free at 877-687-7557.

Clinard Insurance Group, in Winston Salem, NC , specializes in handling the insurance needs  of used car dealers in North Carolina, South Carolina, Georgia, Virginia and Tennessee.  With so many clients in this industry, I thought I should speak out about a little known provision in the dealers open lot coverage that creates a nasty surprise for many dealers after a claim has occurred.  I call it the comp deductible trap.

Any dealer that has a substantial investment in his or her inventory should carry dealers open lot insurance as part of his or her Garage Liability Policy.  This will provide comprehensive and collision coverage for the inventory on the lot and  out on the road and it is the least expensive if you add it to your garage policy.  Just like your personal auto insurance, the comprehensive and collision coverage  in the dealers open lot protection has deductibles.  These deductibles are the first dollar amount that the dealer must pay before the insurance company pays out for the claim.  But here is the catch….. the deductible on the comprehensive coverage is almost always a per car deductible.  And that can add up.

Let’s say you have 20 cars on your lot and a hail storm hits your dealership.  10 of your cars are very badly damaged.   You know that you have comprehensive coverage on your dealers open lot so you pull out your policy and see that you have a $1000 deductible.  Okay, you think to yourself, this is bad but I guess I can cough up $1000 since I have 10 cars that are in awful shape.  When your claims adjuster shows up to start working on this claim for you he reminds you that the deductible is $1000 per car with a 5 car limit.  This is the way most open lot coverages are written.  Suddenly your $1000 deductible has turned into $5000 and you are really singing the blues.  Your cash flow is wrecked for months.

How can you protect yourself from this trickery?  Well, first of all, be sure that you read and understand your policy completely.  Also, only do business with an agent that specializes in the garage policy and used car dealers.  Your business is very unique in the insurance world and you can’t afford to let and agent that has handled the insurance for 5 or 10 dealers in his career protect you.  Let’s face it, your business is one of your most valuable assets and it can lead to your largest liability risks.  Don’t let an inexperienced agent practice on learning the garage policy and its one of a kind ins and outs at your expense. 

As I mentioned earlier, Clinard Insurance Group in Winston Salem, NC, handles the garage insurance needs for hundreds of used car dealers in 4 states.  And the best part is we have found a company that does not have a per car deductible on comprehensive coverage in the dealers open lot insurance.  So in the example above, if you were insured with Clinard Insurance Group, you would only pay $1000 for that devastating hail storm and not $5000.   You can see how doing business with a specialist can be extremely valuable for you and your company.  If you would like more information or help insuring your used car dealership, you can visit us online at www.theautodealershelper.com or call us, toll free at 877-687-7557.