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?

Answer
The type of insurance you will need to flip cars for profit depends 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.
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.
Find insurance that’s customized to your specific needs through the Jerry app. Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They even help cancel your old policy!
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Emily Maracle
Answered on Sep 09, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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