When it comes to placing garage and auto dealer risks, the fastest way to lose momentum is with a red-flagged submission. In a crowded market where underwriters are working through stacks of quotes, even a minor issue, like missing driver data or fuzzy plate-to-employee ratios, can drop your submission to the bottom of the pile. Here’s what you need to know to keep your next transportation or dealership submission moving forward—fast.
Common Underwriting Red Flags in Garage Accounts
Whether you’re working with a used car dealership, a repair facility, or a hybrid service and sales operation, some issues are guaranteed to raise underwriter concerns:
🚩Dealer Plate to Employee Ratios
When the number of plates issued far surpasses the number of staff, underwriters suspect plate lending or undocumented vehicle usage.
🚩Registration & Transport Plates
Excess or misused transport plates, especially without matching registration data, can be a red flag for operations outside the disclosed business model.
🚩Underinsured Dealers Physical Damage (DPD)
Some dealers try to cut costs by insuring DPD at values that don’t reflect the actual inventory exposure. Underwriters notice—and push back.
🚩Missing Motor Vehicle Records (MVR) or Driver Lists
A lack of driver information is a non-starter for most carriers. Submissions without this basic data will stall, if not outright decline.
🚩Unclear Business Descriptions
When a submission doesn’t clearly define the services offered or if there are conflicting NAICS codes, it’s a sign that the agent doesn’t fully understand the risk.
New Areas Drawing Extra Scrutiny
The garage insurance landscape is shifting. Underwriters are adjusting to newer services, technologies, and exposures—and that means agents need to stay one step ahead. Three areas raising additional questions lately include:
Advanced Driver Assistance Systems (ADAS) Calibration
More service accounts now calibrate backup cameras, collision sensors, and lane assist systems. These systems are complex and expensive to get wrong. Submissions must clearly specify who performs the calibration, what equipment is used, and whether the technicians are certified.
Electric Vehicle Sales and Service
Some garage markets now consider electric vehicle (EV) operations, but many still exclude them. Failing to disclose EV involvement can create coverage gaps or cause your quote to be rejected.
Salvage Vehicles and Online Auctions
Businesses dealing in salvage title vehicles or reselling auction cars online may fall outside standard garage appetites. These details must be disclosed early and thoroughly.
What a Solid Garage Submission for an Auto Dealer Looks Like
Want to get your quote to the top of the stack? Start with a rock-solid submission. Here’s what underwriters are looking for and some questions to ask:
- Fully completed garage application and applicable supplements (Acord Applications do not provide the necessary underwriting information needed to quote Garage Risks)
- If an existing business, what is the status of the current coverage? If being cancelled or non-renewed, please explain why
- Accurate number of dealer plates
- A complete list of all owners, employees, drivers, and 1099 subcontractors, including:
- Name and date of birth
- Driver’s license state
- Dealer plate usage (for personal use or not)
- Any known violations
- Full- or part-time status
- Job duties
- Prior carrier and loss information
- Security measures (fencing, alarms, how keys are secured, etc.)
- Type of operation: Retail Dealer, Auto Broker, or Used Auto Wholesaler
- Number of vehicles sold annually
- Years of experience as a used auto dealer
- If claims have occurred in the past 3 years, include current loss runs with your quote request.
If something in the submission is potentially concerning, explain it! A proactive narrative from the agent can go a long way toward diffusing underwriter hesitation. Agents who submit clean, detailed applications give their clients a better shot at faster quote turnaround, fewer coverage exclusions, more competitive pricing, and expanded market access.
How Jencap Helps You Navigate Garage Risks with Confidence
Garage insurance isn’t one-size-fits-all. It takes an expert to know what each market is willing to consider, especially when newer exposures like EVs and ADAS systems come into play.
That’s where Jencap makes a difference. With our Transportation, Garage, and Auto expertise, we help agents:
- Match complex risks to the right carriers
- Spot potential red flags before they derail your quote
- Strengthen submissions for faster approvals
- Navigate underwriting conversations with confidence
You only get one chance to make a first impression with a carrier underwriter. Jencap helps you make it count. Let’s talk about your next submission before red flags slow it down.
