Insurance for Every Type of Vehicle Dealer
Auto dealerships face a unique combination of risks that require specialized insurance coverage. From protecting your vehicle inventory on the lot to covering liability in your service department, a properly structured dealer insurance program is essential to protecting your business and maintaining your dealer license.
As an independent agency specializing in garage and dealer insurance, we work with multiple top-rated carriers to build comprehensive programs for dealerships of all types and sizes — from small independent used car lots to large multi-franchise dealerships. Unlike general insurance agents, we understand the nuances of dealer coverage and can identify gaps that standard programs miss.
Most states require dealers to carry minimum levels of garage liability insurance and a surety bond as a condition of their dealer license. Failing to maintain proper coverage can result in license suspension or revocation — a risk no dealer can afford.
Types of Dealerships We Cover
New Car Dealerships
Franchised new car dealers need comprehensive programs including garage liability, DOL, garagekeepers, and dealer plate coverage.
Used Car Dealers
Independent used car lots require flexible programs that cover their specific inventory value, lot size, and operations.
RV Dealerships
RV dealers face unique risks with high-value inventory. Programs available for Class A, B, C motorhomes and towables.
Motorcycle Dealers
Motorcycle dealerships need coverage for their showroom, service department, and high-theft inventory.
Boat Dealers
Marine dealers require coverage for watercraft inventory, storage, and service operations.
Specialty Vehicle Dealers
ATVs, UTVs, golf carts, and other specialty vehicles — we have programs for dealers of all types.
Coverage Options for Dealerships
A complete dealer insurance program typically includes several coordinated policies. Here's what each covers and why it matters:
How Much Does Auto Dealer Insurance Cost?
Dealer insurance costs vary based on inventory value, number of employees, location, and claims history. The table below shows typical ranges for a basic garage liability + dealers open lot program:
| Dealer Type | Garage Liability | Dealers Open Lot | Est. Total |
|---|---|---|---|
| Small used car lot (under 50 units) | $1,800–$3,500/yr | $1,200–$2,500/yr | $3,000–$6,000/yr |
| Mid-size used car dealer (50–150 units) | $3,500–$6,500/yr | $2,500–$5,000/yr | $6,000–$12,000/yr |
| New car franchise dealer | $8,000–$20,000/yr | $5,000–$15,000/yr | $15,000–$40,000/yr |
| RV or specialty vehicle dealer | $4,000–$10,000/yr | $3,000–$8,000/yr | $8,000–$20,000/yr |
Estimates only. Actual premiums depend on your specific operation. Contact us for an accurate quote.
State Dealer Insurance Requirements
Most states require dealers to carry minimum garage liability limits and a surety bond as a condition of their dealer license. Requirements vary by state:
| State | Min. Liability | Surety Bond | Licensing Body |
|---|---|---|---|
| Florida | $25,000 CSL | $25,000 | FLHSMV |
| Texas | $30,000/$60,000 BI, $25,000 PD | $50,000 | TxDMV |
| Georgia | $125,000 CSL | $35,000 | GA SOS |
| North Carolina | $30,000/$60,000 BI, $25,000 PD | $50,000 | NCDMV |
| South Carolina | $25,000/$50,000 BI, $25,000 PD | $50,000 | SCDMV |
| Oklahoma | $25,000 single liability | $25,000 | OMVC |
| New Mexico | $50,000 CSL | $50,000 | NM MVD |
| Utah | $30,000/$65,000 BI, $25,000 PD | $75,000 | Utah MVED |
Requirements shown are minimums — higher limits are strongly recommended. Requirements change; verify current requirements with your state DMV.
Don't Confuse Minimum Requirements with Adequate Coverage
State minimums are the floor, not the ceiling. A $25,000/$50,000 garage liability limit can be exhausted by a single serious injury claim. Most dealers should carry at least $500,000 CSL, and high-volume dealers should consider $1,000,000 or more.
Why Work With a Dealer Insurance Specialist?
Most general insurance agents write a few dealer accounts per year. We write dealer insurance every day. That specialization means we know which carriers offer the best programs for your specific dealer type, which policy forms have gaps, and how to structure your coverage to avoid the most common claims scenarios.
We work with 100+ A-rated carriers including Markel, Zurich, Nationwide, and Progressive Commercial — carriers with proven track records in the dealer market. We're also members of Trusted Choice, which means we're independent agents who work for you, not for any single carrier.
