What type of dealerships are eligible for coverage in the Motors Inventory Coverage Program?
Any franchised auto dealer is eligible for consideration.

Some of my vehicles are financed in a floor plan program and are insured in that program. Are the vehicles that are not insured or financed in that program eligible for Motors Inventory?
Yes. Motors Inventory Coverage is available for any vehicle, new or used, financed or not, at a franchised auto dealership that meets the program’s underwriting standards.

Is Motors Inventory Coverage available in Canada?
No, not at this time.

Does the Motors Inventory Coverage program provide coverage for a theft that occurs as a result of forgery of a title or other documents and/or identity theft?
Yes, in most cases. The coverage would be found in the language concerning False pretense. There are some exceptions, though and the policy should be consulted.
If a buyer gives me a check that is returned for insufficient funds is that False Pretense?
No. If the check is written on an otherwise open account the presentment of an "nsf" check, and any resulting loss, is not false pretense. If, however, the check is written on a previously closed checking account it could be a false pretense loss.

Are my dealer trades covered?
It depends on the dealer providing the trade. If it is a GMAC floored dealer, the vehicle can be transferred at the dealership before the trip home. In this case the car is covered by us as long as we have collision coverage. In the less likely event a comprehensive loss occurs, that would be covered in any event. If the trade is made with a dealer who DOES NOT floor with GMAC, the vehicle is just like a trade-in; it is not covered until the dealer completes the paperwork to GMAC. In this case, the vehicle is assumed to be covered by the garage carrier.

If I move some vehicles to a temporary location such as a mall, a golf course, or something similar do I need to notify GMAC Risk Services and will the vehicles be covered?
As long as the vehicles remain in the United States, its territories or possessions, Puerto Rico or Canada, they are covered regardless of where they are. If the location is temporary there is no need to contact GMAC Risk Services. However, if the location is or will become permanent it is a good idea to notify us (or your agent).

Are so-called "spot deliveries" covered?
Yes. Where state laws and regulations allow spot deliveries your policy will cover them.

Are "economic loss" payments available for Comprehensive losses?
No. Economic loss payments are made in connection with Collision losses with one exception. If a new vehicle is stolen and recovered with no other damage except additional miles added to the odometer, economic loss would be paid for the additional miles.

If I take a car to hold for sale on consignment is that vehicle covered by my insurance?
Yes. It is a good idea to have a written consignment agreement between you and the owner of the vehicle so that there is no question that the vehicle has been left with you on consignment.

If I am on a business trip and rent a car is it covered?
Yes. The Motors Inventory Coverage policy provides physical damage coverage for any vehicle that you or your employee borrows or rents on a short-term basis. It should be noted, though, that this coverage does not include any coverage for liability.

If I take a boat, trailer, motorcycle or some other type vehicle in trade for a vehicle is it covered?
Yes. It should be noted, though, that boats are covered only while on land, and a vehicle must be a land motor vehicle.

Why do I have to separate my inventory from my demos and shop vehicles?
Demos and shop vehicles are subject to more risk than inventory as demos and shop vehicles are driven regularly (daily). Many companies develop an average rate to cover all vehicles. The Motors Inventory Coverage program charges based on the exact number and value of the specific vehicles that are demos and shop vehicles. This tailors the price to the specific dealership need.

What are "inventory" vehicles?
Inventory vehicles are those which are held for sale. These constitute the majority of vehicles at a dealership. Another term for such vehicles would be "stock."

What is a "demo" (demonstrator) vehicle?
The policy basically defines a "demo" as any vehicle that is given to anyone or any entity for his, her or its regular use. Another way to say this is that a "demo" is a regularly furnished auto.

How are real demonstration rides covered?
The policy provides coverage for any insured vehicle, regardless of its classification; to be covered while it is being "demonstrated" or "test driven" by a potential buyer.

What is a shop-rental vehicle?
Virtually every dealership has vehicles that are used in the functioning of the dealership. Such vehicles are customer loaner or rental short-term replacement vehicles, courtesy vans, parts trucks, snow plows, etc. These vehicles are not demonstrators, as defined by the policy, and are not inventory held for sale. They should be included in the value reporting as shop/rental.

Does the Motors Inventory Coverage program require monthly reports of values?
No. At the inception or renewal of any policy you provide us, either directly or through your agent, a value determination survey. The survey reports the values of the inventory, demonstrators and/or shop rentals you had, by month, during the prior year. No monthly reporting is required.

How are the limits of insurance determined?
When you provide the values of each type of vehicle in the value determination survey, we quote or issue the policy with limits equal to the highest monthly value in each category (inventory, demonstrator or shop rental) from the prior year. The charge for the Inventory insurance is based upon an average value from the prior year since fluctuation in the values for that class of vehicle occurs. The limits for demonstrators and shop rental vehicles are the same, as there is very little fluctuation in these values.

If I make an improvement in the security at my dealership will there be reduction in the charges for my insurance?
It is very likely that some reduction might be in order. It is necessary for any credit to be approved by the underwriting department. However, if there have been prior losses which might be reduced or eliminated by the change made, it is probable that some credit can be given. You should check with customer service or your agent.

What if my loss exceeds the values on the policy?
If the values you or your agent reported for the prior year on the value determination survey can be substantiated by your books, the policy will cover you for any limit needed in excess of the limit on the policy. This agreement does not apply to losses due to False Pretense. False Pretense losses are subject to special annual limits within the policy.

How are rates and prices determined?
Your specific rates and premiums are based on the individual characteristics of your dealership including: past loss experience, location, deductible choices, and limits.

How do I get a Motors Inventory Coverage quote or policy?
Contact Customer Service at 800-729-4622,
your GMAC Insurance dealership insurance specialist,
your GMAC Insurance account executive, or
your GMAC representative.

To get the best rates possible you will need to provide us with loss information covering the last three years on company stationery from the company providing your coverage.

How do I pay for coverage?
When you receive your quotation form you will notice that it asks for a deposit premium, which needs to be sent to us with the request to bind coverage. If your annual premium is computed to be $2,400 or less you will be asked for the entire amount to put coverage in force. If your annual premium is greater than $2,400, you will be asked for a deposit premium equal to 8.37% of the annual premium. Subsequent monthly payments will be roughly equal to the remaining balance divided by the number of remaining months in the policy term. Most policies are written for a year, so the balance would be divided by 11. Alternatively, you can pay the annual premium when binding.

If I pay by monthly installments is there a service charge or interest applied?
No. There is no service charge or interest applied.