True or False: Dealers are required to be either self-insured or have insurance for their vehicles.

True or False: Dealers are required to be either self-insured or have insurance for their vehicles.

• A. True
• B. False
• C. Only if selling over 10 vehicles a month
• D. Only if they have a physical dealership location

Answer: (A)

Dealers are indeed required to be either self-insured or maintain insurance coverage for their vehicles. This requirement stems from the need to protect both the dealer's assets and the interests of customers. Insurance provides a safety net in case of accidents, theft, or other unforeseen incidents that could result in financial loss. Having either self-insurance or a commercial insurance policy is crucial for safeguarding the inventory and ensuring compliance with state regulations. This requirement helps maintain responsibility and accountability in the automotive sales industry, ultimately benefiting consumers by ensuring that dealers have the resources to cover liabilities related to vehicle transactions. The other options imply conditions that may not accurately reflect the true insurance requirements for all dealers, hence making those alternatives inaccurate regarding the absolute necessity for insurance in the context of vehicle sales.

Dealers are indeed required to be either self-insured or maintain insurance coverage for their vehicles. This requirement stems from the need to protect both the dealer's assets and the interests of customers. Insurance provides a safety net in case of accidents, theft, or other unforeseen incidents that could result in financial loss.

Having either self-insurance or a commercial insurance policy is crucial for safeguarding the inventory and ensuring compliance with state regulations. This requirement helps maintain responsibility and accountability in the automotive sales industry, ultimately benefiting consumers by ensuring that dealers have the resources to cover liabilities related to vehicle transactions.

The other options imply conditions that may not accurately reflect the true insurance requirements for all dealers, hence making those alternatives inaccurate regarding the absolute necessity for insurance in the context of vehicle sales.