Final answer:
Business auto physical damage coverage for a used car dealership may provide coverage when dealership employees possess the vehicles, possibly at an additional premium. Insurance terms and premiums vary, and policies should be reviewed to understand exact coverages.
Step-by-step explanation:
When considering business auto physical damage coverage for a startup used car dealership, it is essential to understand what is typically covered by the insurance company. Generally, coverage can be provided in various circumstances, which may include when dealership employees are in possession of the subject automobile, potentially at an additional premium. Insurance coverages and premiums can differ based on factors like the vehicle's safety rating, the driving history of the employees, and even the age of the drivers, among other considerations.
It's important to note that each insurance policy is unique, and specific terms regarding coverage for transporting vehicles from auctions would be outlined in the policy. The dealer should carefully review the insurance contract or speak with an insurance representative to determine the exact coverages, including whether they cover the actual cash value or just the wholesale amount.