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What kind of insurance do you need to flip cars?
Do you need insurance when flipping cars? My friends and I are going to start doing it soon. Is there a particular type of coverage we need?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Some states require a dealer’s license based on the amount of cars you sell or own. If your state does require that you get a dealer’s license, you’ll also need to get a specific amount of insurance or a surety bond with your state’s DMV.
Also, since the cars are part of a business, most insurance providers won’t allow you to insure them under a personal auto policy. You likely need a commercial or
business insurance policy
instead.If you currently have car insurance, you can reach out to your provider to find out what line of insurance they recommend. You should reach out to the DMV to confirm their requirements as well.
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