Spot Auto Insurance

The PROGRAM is filed and approved by the Department of Insurance in each state the program is offered. The insurance coverage provided to the dealer under the Program is through a commercial auto insurance master policy. The Program was designed to be used exclusively by new and independent auto dealers when a customer does not have proof of insurance at the time of sale. State insurance regulations and the “Insurance Provisions” of the conditional sales contract provides that the automobile dealer can purchase insurance to protect their “security interest” in the vehicles they sell. The Master Policy clearly states that the auto dealer is the “named insured”, and the coverage is extended to the vehicle purchased/leased by the customer. The dealer will receive confirmation of insurance coverage at the time the dealer orders coverage over the internet. If the dealership orders the coverage, via fax, the evidence of coverage will be faxed back to the dealership upon receipt.

Under the Program the dealer is buying insurance to protect his/her security interest in the vehicle he/she is selling. Since the dealer is purchasing insurance, and not selling or offering personal insurance coverage to their customer, he/she does not need to maintain an insurance license to use the Program.

Dealers can either use the internet with their dealer ID and password or fax in the Enrollment Forms, provided by the Administrator or the local agent, when ordering coverage.

The Dealer must order coverage on the date of sale. No risk shall be bound until the insurance information is received by Administrator.

Upon receipt of the online application or fax, the dealer will be sent a confirmation of coverage. If by fax late night or weekend, confirmation should arrive the next day. If the dealer requests coverage via the internet a confirmation and evidence of coverage will be sent to the dealer within a few minutes of ordering the coverage to the default fax number on file.

The dealership can order the number of days of coverage from three (3) to thirty (30) days. The number of days of coverage will be ordered separately on a customer by customer basis. Immediate insurance coverage allows a dealer to safely deliver a vehicle at any time and the customer will be contacted from 413 Insurance Services insurance agency or another local agency to underwrite them into another policy and notify the lien holder of the change