Anthony LaFaziaCEO, Atlantic Training · CEO at Atlantic Training | EdTech & Safety Compliance Leader

Dealership Compliance: Plates, Licenses, and Liability

20 Jul 2026 · 3 min

Watch on YouTube

3:02

The video provides dealership staff with essential compliance guidance to avoid legal and insurance issues. Speaker A explains the role of garage liability insurance, emphasizing that employees should not interpret coverage or promise claims to customers, and must refer such questions to management. The speaker then outlines strict state and dealership policies for dealer plates, limiting their use to inventory vehicles for demonstration, service, or business movement, and stresses proper securing of plates. For test drives, employees must verify a physical driver's license, possibly copying it, and must not rely on phone photos. The importance of completing a loaner intake form or safety checklist to document vehicle condition before and after a test drive is highlighted, as failure to do so can result in liability for damages. Speaker B interjects with a promotional segment for Atlantic Training’s WAVE EHS software, which bundles the training course with tools for incident investigation, SDS record management, employee progress tracking, and audit readiness, offered free with a training plan. The overall message is that adhering to documented procedures protects the dealership from higher insurance premiums, coverage denial, and legal exposure.

Chapters

Okay, so let's talk about the boring stuff that keeps you out of legal hot water. Compliance isn't just about following the rules of the road; it's about supporting the dealership's garage liability coverage. Specifically, this insurance helps protect the business against certain third-party bodily injury and property damage claims arising from operations and the use of autos. This coverage is essential, and repeated violations or preventable crashes can lead to higher premiums or difficulty renewing coverage. A quick note on insurance: different policies might apply depending on what happens. Garage liability, garage keepers, and others. Your job isn't to interpret coverage or make promises to customers. If someone asks what's covered, refer them to a manager or the office instead of guessing.
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Never promise a customer "the insurance will take care of it" after an incident. Always escalate to management. Next, those dealer plates. They aren't get-out-of-jail-free cards. State law and dealership policy strictly limit how dealer plates can be used, often restricting them to inventory vehicles being demonstrated, serviced, or moved for business. You must ensure the plates are properly secured, not just tossed on the dashboard. When it comes to test drives, you've got to verify the customer's information. Your dealership needs to see, and if company policy requires it, make a copy of, a valid driver's license before those keys ever leave your hand. You've gotta see the physical document to verify identity. No pictures on a phone. Also, check your company policy on loaners. There's usually an intake form, similar to a safety checklist, that documents the car's condition. If you skip the walk-around and the customer brings it back with a dent, Hey, that's on you because there's no paper trail. Following the paperwork protects you from being blamed for damage you didn't cause.