Garage policies are primarily used to provide insurance to which of the following?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

Garage policies are specifically designed to cover risks associated with businesses that primarily deal with automobiles. This includes not only auto dealers but also service stations and trailer dealers. The correct answer emphasizes the focus on auto and trailer dealers, which are core components of the garage policy's intended coverage.

These policies provide a combination of liability and property coverage, which is essential for businesses that have a higher risk due to the nature of their operations involving vehicles. Service stations and parking garages also depend on this specialized coverage because of the unique liabilities they face, such as damaged vehicles or accidents that occur on their premises.

The choice that limits coverage to auto and trailer dealers only misses the broader scope of the garage policy, which includes essential services that are part of the automotive industry. Therefore, while the selected answer accurately highlights a segment of the coverage, it does not encompass the entire range of businesses typically insured under garage policies.

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