Is garage liability required for Texas auto dealers?

Yes. The Texas Department of Motor Vehicles (TxDMV) requires licensed dealers to maintain liability insurance as a condition of their dealer license. Texas dealers must also maintain a $50,000 surety bond. Garage liability is the appropriate policy type for dealer operations.

What are Texas tow truck insurance minimums?

Texas TDLR sets minimum liability limits by towing type — not vehicle weight. Consent towing requires $300,000 CSL. Private property towing requires $300,000 CSL plus $50,000 on-hook coverage. Incident management towing (police-dispatched or highway clearance) requires $500,000 CSL plus $50,000 on-hook coverage per tow truck per incident.

Is workers' compensation required for Texas auto businesses?

Texas is unique — workers' compensation is not mandatory for most private employers. However, non-subscribers face significant risk: injured employees can sue the employer directly without the exclusive remedy protection workers' comp provides. Most auto dealers and repair shops in Texas carry workers' comp voluntarily.

What is the difference between garage liability and general liability in Texas?

Standard general liability policies contain an 'auto exclusion' that eliminates coverage for most incidents involving vehicles. For Texas automotive businesses — dealers, repair shops, tow companies — garage liability fills this critical gap by covering bodily injury and property damage arising from your garage operations, including test drives, vehicle handling, and completed repairs.

Do Texas repair shops need garagekeepers insurance?

Yes. Any Texas repair shop, body shop, or dealership that takes customer vehicles into their care, custody, or control should carry garagekeepers insurance. This covers the customer's vehicle if it is damaged or stolen while in your possession — coverage that garage liability alone does not provide.

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Licensed in Texas · TX

Garage Liability Insurance in Texas for Auto Dealers & Repair Shops

For Auto Dealers, Used Car Lots, Repair Shops & Towing Companies

Texas has one of the largest automotive markets in the United States, with thousands of licensed dealers, independent repair shops, and towing companies operating across the state. If you need Texas dealer insurance, the Texas Department of Motor Vehicles (TxDMV) requires garage liability insurance and a $50,000 surety bond. The minimum liability for dealers is $85,000 CSL (or 30/60/25 split limits). Tow truck operators licensed by TDLR must carry $300,000–$500,000 CSL depending on towing type. Garage liability insurance — not standard general liability — is the required and appropriate coverage for Texas auto dealers, repair shops, and tow operators.

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Licensing Body

TxDMV for dealers; TDLR for repair shops

Dealer Bond

Texas dealers must maintain a $50,000 surety bond

Tow Truck Regs

TDLR regulates towing companies & sets minimums

At-Fault State

Texas is a fault-based (tort) state

Workers' Comp

Not mandatory in TX but strongly recommended

Coverage Programs

Complete Texas Automotive Insurance

We build complete insurance programs for Texas automotive businesses — not just a single policy. Every coverage your dealership, repair shop, or towing company needs, from one independent agency with access to 100+ A-rated carriers.

Garage Liability (premises & operations)

Garagekeepers Legal Liability

Dealers Open Lot (inventory physical damage)

Commercial Auto for dealer plates & tow trucks

Workers' Compensation (non-subscriber option available)

Dealers E&O (errors & omissions)

Cyber Liability

Commercial Property

Umbrella / Excess Liability

Instant Quote

Fast quote assistance through our network of 100+ A-rated carriers. Agents focused on Texas garage liability.

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Licensed in TX

Ellie Insurance Group is licensed in Texas and focuses on garage liability insurance for Texas automotive businesses. We have access to 100+ A-rated carriers and compare eligible markets for suitable coverage and competitive pricing for your Texas operation.

State Requirements

Texas Tow Truck Insurance Requirements

Texas TDLR sets tow truck insurance minimums by type of towing operation — not by vehicle weight class. Incident management towing (police-dispatched or highway clearance) requires the highest coverage at $500,000 CSL. Private property towing and consent towing require $300,000 CSL. On-hook coverage is required for incident management and private property towing but not for consent towing. Non-compliance can result in permit revocation, fines, and business interruption.

Vehicle Type	Minimum Liability	On-Hook / Cargo Min.
Consent Towing	$300,000 combined single limit per occurrence	Not required by TDLR
Private Property Towing	$300,000 combined single limit per occurrence	$50,000 cargo/on-hook per tow truck per incident
Incident Management Towing	$500,000 combined single limit per occurrence	$50,000 cargo/on-hook per tow truck per incident

* State minimums are the legal floor — not the recommended coverage level. Work with a licensed agent to determine appropriate limits for your operation.

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