Do you repair or sell cars?

Car sales and car repair shops are regulated by the province or territory where the business resides. The regulations were set up in 1999 in Alberta under AMVIC. This organization was founded by a delegated agreement with Service Alberta.

AMVIC provides the license for those wishing to sell motor vehicles and for the service industry in Alberta. For the general public there is the service of dealing with consumer complaints, educating the industry and the public on the Fair Trading Act and creating a compensation fund to fund these responsibilities.

So if you want to set up an auto repair garage you will need to contact AMVIC and get your licensing in place. If you are a car dealer you need to go through the process of licensing as well. Insurance companies want to see the AMVIC license in place because it means you have qualified. This is part of the insurance underwriting process.

What does it cost for a auto repair garage license? Effective July 1, 2010 the renewal fee is going to increase to $250.

The July 1, 2010 will see car dealers paying a levy of $6.25 for the sale of a new or used vehicle.

AMVIC has stated that the increased revenue will allow for additional investigators to respond to consumer complaints. A consumer compensation fund is going to be set up as well.

Insurance companies are concerned when a person is buying and selling vehicles on a regular basis. This can be seen as "curbing", this is unlicensed sale of vehicles and is considered an illegal activity. A mechanic who is doing repairs out of his home garage is also a concern to AMVIC and insurance.

Insurance advice

If you are a backyard mechanic or have been buying vehicles and turning them over for private sales income then you need to consider the AMVIC requirements. Check out their website.

Talk to your agent or broker about the process for obtaining commercial insurance if you wish to go ahead with your venture. This is not the same as home or personal auto insurance. Business insurance can be quite complex.