What kind of insurance do you need to flip cars?
My friends and I are going to start flipping cars. Is there a particular type of coverage we need?
Answer provided by
Answered on Jun 11, 2021
Types of Insurance
“The type of car insurance you will need to flip cars for profit will depend on where you live. 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. You also likely need a commercial or business insurance policy. Since the cars are part of a business, most insurance carriers won’t allow you to insure them under a personal auto policy.
If you currently have insurance, you can reach out to your carrier to find out what line of insurance they recommend. You should also reach out to the DMV to confirm their requirements as well. “
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