ACORD 165 (Garage/Dealer Application)
The ACORD form for auto dealer insurance applications covering franchise, independent, and specialty vehicle dealers.
What It Is
The ACORD 165 is a comprehensive application supplement for auto dealers, covering franchise dealers, independent used car dealers, motorcycle dealers, and specialty vehicle dealers. It captures detailed information about the dealership's operations, inventory levels, lot layout, financing arrangements, and loss history.
The form goes beyond the ACORD 131 (Garage Supplement) by including dealer-specific sections on average inventory value, maximum inventory value, F&I operations, loaner vehicle programs, and customer test drive procedures. It also addresses dealer plate usage and demonstrator vehicle policies.
This form is essential for properly underwriting auto dealer accounts, which have unique exposures not found in other garage operations.
Why It Matters for Brokers
Auto dealer insurance is a specialized niche with unique coverage requirements including dealer open lot (physical damage to inventory), garage liability (liability from dealership operations), and garagekeepers (damage to customer vehicles in for service). The ACORD 165 captures the specific data needed to quote these coverages accurately. Brokers specializing in dealer accounts must master this form to present comprehensive submissions that result in competitive quotes and appropriate coverage.
Real-World Example
A franchise auto dealer with an average inventory of 350 new and used vehicles applies for a comprehensive dealer package. The broker completes the ACORD 165 documenting average inventory value of $12M, maximum inventory of $18M (during model-year changeover), 15 service bays, customer loaner program with 8 vehicles, and comprehensive lot security with cameras and overnight security patrol. The detailed submission enables the carrier to quote the complete dealer package competitively.
Common Mistakes
- 1Underreporting maximum inventory values, which results in inadequate dealer open lot limits when inventory peaks during sales events.
- 2Not documenting test drive procedures and loaner vehicle policies, which affect liability underwriting for the dealership.
- 3Failing to disclose F&I (Finance and Insurance) operations, which create additional professional liability exposure.
How brokerageaudit.com Handles This
Submission Intake provides dealer-specific validation for the ACORD 165, including inventory value analysis and coverage gap identification for common dealer exposures.