Obtaining a motor vehicle dealer license in Florida or Texas requires meeting specific insurance, bonding, facility, and education requirements. This guide covers exactly what you need — and what happens if you don't maintain compliance.
Why Dealer Licensing Requirements Matter
Every state regulates motor vehicle dealers to protect consumers from fraud, title issues, and deceptive practices. As a licensed dealer, you are required to maintain specific insurance and bonding coverage at all times. Letting your coverage lapse — even for a day — can result in automatic license suspension, fines, and the inability to legally sell vehicles.
The two most important insurance/bonding requirements for dealers in virtually every state are:
- Garage liability insurance — protects against bodily injury and property damage claims arising from your dealership operations
- Dealer surety bond — protects consumers and the state from dealer fraud, misrepresentation, or failure to transfer titles
Florida Motor Vehicle Dealer License Requirements (2026)
Florida dealer licenses are issued by the Florida Highway Safety and Motor Vehicles (FLHSMV). The requirements vary slightly by dealer type (new, used, wholesale, salvage), but the core requirements are:
Required Insurance: Garage Liability
Florida requires all licensed motor vehicle dealers to carry garage liability insurance with minimum limits of:
- $25,000 combined single limit (CSL) covering bodily injury and property damage per occurrence
- $10,000 Personal Injury Protection (PIP)
These are the statutory minimums — most dealers and their lenders require significantly higher limits ($300,000–$1,000,000 per occurrence) for real-world protection. The insurance must be from a carrier licensed in Florida, and a certificate of insurance must be filed with FLHSMV.
Required Bond: Motor Vehicle Dealer Surety Bond
Florida requires a $25,000 surety bond from all licensed motor vehicle dealers. The bond must be:
- Issued by a surety company licensed in Florida
- Filed with FLHSMV before the license is issued
- Renewed annually with the dealer license
Florida Dealer License Application Requirements
- Complete a state-approved pre-licensing dealer education course (8 hours)
- Establish a licensed dealer location with proper signage and an enclosed office
- Obtain a Certificate of Occupancy for the dealer location
- Submit proof of garage liability insurance (certificate of insurance)
- File the $25,000 surety bond with FLHSMV
- Pass a background check (fingerprinting required)
- Pay the license application fee ($300 for new dealers)
- Obtain a dealer tag (license plate) for demonstrating vehicles
Florida Dealer License Renewal
Florida dealer licenses renew annually. You must maintain continuous garage liability insurance and surety bond coverage throughout the license period. FLHSMV will notify you of renewal requirements, but it is your responsibility to ensure your insurance and bond are renewed before they expire.
Allowing your garage liability insurance or surety bond to lapse — even briefly — can result in automatic suspension of your Florida dealer license. Don't let a renewal slip through the cracks.
Texas Motor Vehicle Dealer License Requirements (2026)
Texas dealer licenses (General Distinguishing Numbers, or GDNs) are issued by the Texas Department of Motor Vehicles (TxDMV). Texas has several dealer license types, but the core requirements for most dealers are:
Required Insurance: Garage Liability
Texas requires all licensed motor vehicle dealers to carry garage liability insurance. Under Texas law, the minimum required is:
- $85,000 in garage liability coverage
This is the statutory minimum. Most lenders and floor plan providers require significantly higher limits ($300,000–$1,000,000 per occurrence) for real-world protection. The insurance must be from a carrier licensed in Texas, and a certificate of insurance must be filed with TxDMV.
Required Bond: Motor Vehicle Dealer Surety Bond
Texas requires a $50,000 surety bond for most GDN license types. Some dealer types (wholesale, travel trailer, etc.) may have different requirements. The bond must be:
- Issued by a surety company licensed in Texas
- Filed with TxDMV as part of the license application
- Renewed annually
Texas GDN License Application Requirements
- Establish a licensed dealer location with proper signage and a permanent structure
- Submit proof of garage liability insurance (minimum $85,000 in coverage)
- File the $50,000 surety bond with TxDMV
- Pass a background check
- Pay the license application fee (varies by license type)
- Complete the online GDN application through TxDMV eLICENSING
Texas Dealer License Renewal
Texas GDN licenses renew annually. TxDMV will send renewal notices, but you are responsible for maintaining continuous insurance and bond coverage. Failure to renew on time results in license expiration and the inability to legally sell vehicles until the license is reinstated.
Other States: Quick Reference
| State | Min. Garage Liability | Surety Bond | Licensing Authority |
|---|---|---|---|
| Georgia | $125,000 CSL (or 50/100/25 split) | $35,000 | GA Secretary of State / Used Car Dealer Division |
| North Carolina | Garage liability required (amount per NC DMV) | $50,000 (first location); $25,000 each additional | NC DMV License & Theft Bureau |
| South Carolina | Verify with SC DMV | $30,000 (retail dealers) / $15,000 (wholesale) | SC DMV |
| New Mexico | $100,000 CSL | $50,000 | NM MVD |
| Utah | $100,000 CSL | $75,000 (motor vehicle dealers) | Utah State Tax Commission |
What Happens If You Don't Maintain Required Coverage?
Failing to maintain your garage liability insurance or surety bond has serious consequences:
- Automatic license suspension — most states suspend your dealer license immediately when coverage lapses
- Fines and penalties — operating without a valid license can result in significant fines
- Personal liability — without insurance, you are personally responsible for any claims that arise
- Floor plan issues — lenders and floor plan providers typically require proof of insurance; a lapse can trigger default provisions
How DealerLiability.com Can Help
At DealerLiability.com, we work with motor vehicle dealers, repair shops, and automotive businesses across Florida, Texas, and beyond. We can help you:
- Get the garage liability insurance required for your dealer license
- Obtain your dealer surety bond at competitive rates
- Bundle both coverages for the best overall pricing
- File certificates of insurance and bond documents with your state DMV
- Set up automatic renewal reminders so your coverage never lapses
Whether you're a new dealer getting licensed for the first time or an established dealer looking to review your coverage, we're here to help. Get a quote today and we'll handle the details.
Disclaimer: Dealer licensing requirements, insurance minimums, and surety bond amounts vary by state, dealer type, and are subject to change by state legislatures and DMV agencies. The information in this article reflects publicly available requirements as of 2026 and is provided for general informational purposes only. It does not constitute legal or insurance advice. Always verify current requirements directly with your state's motor vehicle licensing authority and consult a licensed insurance professional before applying for or renewing a dealer license.
