Dealerships need dealer tags to move inventory around and for test drives for potential buyers. The insurance company will authorize the agency to issue Certificates of Insurance (COI) that the dealerships can take to the Department of Motor Vehicles (in most cases). On the COI it will state the dealership name, address, limits of insurance and amount of dealer tags. It is important to remember that the DMV will only issue the dealer tags if the name of the business exactly matches the name on the Certificate.
How many Dealer Tags can you get?
The number of dealer tags directly correlates with the number of owners and employees. A single person operation can typically get three dealer tags. Larger dealers with many sales people listed on the policy can get 20+ tags.
During the application process the agent that you are working with will ask you how many dealer tags you need. The agent will advise you if the amount of dealer tags you are asking for is too high compared to the employee list. Too many dealer tags will cause a Red Flag in underwriting and you may not get a quote.
How much do the Dealer Tags Cost?
On a basic policy that just has liability, no uninsured motorist bodily injury (UM) or medical payment (Med Pay), there are no additional charges for dealer tags. Policies that have UM and/or Med Pay can expect to pay a higher rate for each additional tag.
Can you Loan out Dealer Tags?
Dealer tags can never be loaned out to other dealers or individuals. It is the responsibility of the Dealership to secure and account for all tags issued by the DMV.
