Underwriting delays often come down to one core challenge: unclear or incomplete submissions. For insurance retailers working with used car dealer insurance companies, submission quality matters more than speed. When dealers and agents present complete, accurate information from the start, underwriters can evaluate risk confidently, price coverage, and issue terms more quickly.
This article outlines common delays, what underwriters expect, and how retail agents can help dealers prepare submissions that reduce back-and-forth and strengthen industry relationships.
Why Do Underwriting Delays Happen With Used Car Dealer Insurance Companies?
Delays most often stem from gaps in the submission package. Underwriters at used car dealer insurance companies need a clear operational picture, and when applications are vague or inconsistent, they must ask follow-up questions. Common issues include missing details about sales and service operations, incomplete lot controls, and assumptions about what underwriters “already know.”
Because dealerships face unique exposures — from inventory turnover to customer traffic — incomplete submissions force underwriters to pause and verify basic information, which slows turnaround times.
What Information Do Underwriters Expect To See Upfront?
Underwriters look for key details that help them evaluate risk without guesswork:
- A clear description of dealer operations, including whether service, recon, or transport functions are included
- Inventory values, turnover rates, and lot security practices
- Four years or more of loss history with context for larger claims
- Active risk-management practices already in place
- Any recent or planned operational changes that might affect exposure
In addition to these basics, carriers increasingly consider how dealers manage emerging risks. For example, dealerships leveraging technology, such as customer relationship management platforms, see efficiency gains but also face growing cyber exposure. Specialty coverage can address these vulnerabilities.
Where Do Dealer Submissions Commonly Fall Short?
Three recurring gaps often trigger underwriting questions:
- Vague operational descriptions that leave out key activities
- Outdated or incomplete loss runs without explanations linked to risk-management improvements
- Rushed submissions that lack supplemental detail
Incomplete submissions create uncertainty for underwriters and extend underwriting review timelines.
How Submission Quality Improves Underwriting Efficiency
Accurate, complete submissions allow underwriters to focus on pricing and structure rather than chase missing details. Fewer follow-up emails and resubmissions improve turnaround times and reduce mid-process adjustments that can disrupt renewal timing.
Retail agents play a key role by reviewing applications with dealers, asking operational questions early, and identifying gaps before underwriting review. Discussing risk-management practices — like staff training, lot security, and standardized inspection protocols — not only strengthens submissions but also helps dealers lower premiums and reduce claims.
Consistently strong submissions build credibility with specialty managing general agents (MGAs) and carriers. That credibility often translates to faster responses, smoother renewals, and long-term efficiency benefits for agents, MGAs, and dealer clients.
Don’t Delay in Getting Your Clients Proper Car Dealer Insurance
Underwriting delays with used car dealer insurance companies are often preventable with thorough preparation and clear communication. By prioritizing accuracy and completeness, retail agents can deliver better placement outcomes. If you want to streamline auto dealer placements and improve underwriting efficiency, get in touch with us today.
About Aegis General Insurance Agency
Aegis General Insurance Agency — Specialty Dealer Division strives to create a leading underwriting and distribution franchise in the program insurance market. We’ve bridged the gap between agents and client payments with our efficient ACH payment system. Partnering with us gives agents the advantage of ACH payment capability, allowing for direct billing through the firm. Call us today at (866) 429-1638 to find out how you could partner with K2 to offer top-tier insurance coverages and modern features to your clients.
