24 state guides
Find your state. Get the details right.
Insurance filings, dealer bonds and license applications are separate pieces of the same process. Requirements depend on your state and dealer license category.
AlabamaArizonaArkansasColoradoFloridaGeorgiaIllinoisIndianaIowaKansasKentuckyMichiganMinnesotaMissouriNew MexicoNorth CarolinaNorth DakotaOhioOklahomaPennsylvaniaSouth CarolinaTexasVirginiaWisconsin
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Used auto dealer requirements are the starting point. Wholesale, broker, motorcycle, RV, truck and boat license classes can differ. A state minimum is a licensing floor, not a recommendation for your business.
Dealer insurance requirements by state
Liability, uninsured motorist coverage, medical benefits and dealer bonds each serve a different purpose. Select your state for the full requirements and official sources.
Split limits are in thousands: 25/50/25 means $25,000 bodily injury per person, $50,000 bodily injury per accident and $25,000 property damage. CSL means combined single limit. BI means bodily injury; PD means property damage. Bond amounts are face amounts, not premiums.
| State | Liability limits and scope | UM | UIM | PIP / medical | Dealer bond |
|---|---|---|---|---|---|
| Alabama | 25/50/25 or $75,000 CSL Dealer liability minimums | May be rejected in writing | Included in UM; may be rejected | Not required | $50,000 |
| Arizona | 25/50/15 Vehicle liability for road use | Optional; 25/50 BI if purchased | Optional; 25/50 BI if purchased | Not required | $100,000 Used retail; $25,000 wholesale |
| Arkansas | 25/50/25 Liability on vehicles offered for sale | May be rejected | Optional | May be rejected; private-passenger rules apply | $25,000 |
| Colorado | 25/50/15 Vehicle liability for road use | May be rejected in writing | Included in UM; may be rejected | Not required | $50,000 |
| Florida | $25,000 CSL Dealer liability minimum | Optional; selection/rejection rules apply | Part of optional UM coverage | $10,000 | $25,000 |
| Georgia | 50/100/25 or $125,000 CSL Dealer garage liability minimums | May be rejected in writing | Part of UM; may be rejected | Not required | $50,000 |
| Illinois | 100/300/50 Dealer liability minimums | 25/50 BI minimum; higher-limit rules apply | Required when UM exceeds 25/50 BI | Not required | $50,000 Eligibility / continuation rules apply |
| Indiana | 100/300/50 Dealer liability minimums | 25/50 BI + $25,000 PD unless rejected | $50,000 BI unless rejected | Not required | $25,000 |
| Iowa | 100/300/50 Dealer financial liability minimums | 20/40 BI unless rejected in writing | 20/40 BI unless rejected in writing | Not required | $75,000 |
| Kansas | 25/50/25 Dealer vehicle liability minimums | 25/50 BI required | 25/50 BI required | $4,500 medical + other required benefits | $50,000 |
| Kentucky | 250/500/250 Dealer garage liability minimums | 25/50 BI unless rejected in writing | Optional; available on request | $10,000 basic PIP; exceptions apply | $25,000 or more, if required |
| Michigan | 50/100/10 Lowest selectable vehicle liability limits; lower-limit selection required | Optional | Optional | Business named insured: $250,000, $500,000 or unlimited medical | $25,000 |
| Minnesota | 30/60/10 Dealer vehicle liability minimums | 25/50 BI required | 25/50 BI required | $40,000 total: $20,000 medical + $20,000 nonmedical | $50,000 |
| Missouri | 25/50/25 Vehicle liability for road use | 25/50 BI required | Optional | Not required | $50,000 |
| New Mexico | 25/50/10 Vehicle liability for road use | May be rejected after a proper offer | Part of UM; may be rejected | Not required | $50,000 |
| North Carolina | 50/100/50 Vehicle liability for dealer-plate use | 50/100 BI + $50,000 PD; fleet exceptions | Matches UM BI; fleet exceptions | Not required | $50,000 First location; $25,000 each additional |
| North Dakota | 25/50/25 Vehicle liability minimums | 25/50 BI required; heavy-vehicle exception | Matches UM; heavy-vehicle exception | $30,000 per person | $25,000 |
| Ohio | 25/50/25 Vehicle liability for road use | Optional | Optional | Not required | $75,000 Eligibility / continuation rules apply |
| Oklahoma | $25,000 CSL Used-dealer certificate minimum; road-use limits also apply | May be rejected in writing | Part of UM; may be rejected | Not required | $25,000 |
| Pennsylvania | 15/30/5 Vehicle liability minimums | May be rejected in writing | May be rejected in writing | $5,000 first-party medical | $20,000 Dealer; separate issuing-agent bond |
| South Carolina | 25/50/25 Vehicle liability for dealer plates | 25/50 BI + $25,000 PD required | Optional; must be offered | Not required | $50,000 |
| Texas | 30/60/25 Vehicle liability for road use | May be rejected in writing | Part of UM; may be rejected | $2,500 unless rejected in writing | $50,000 |
| Virginia | 50/100/25 or $125,000 CSL Vehicle liability for dealer plates | 50/100 BI + $25,000 PD minimum | Matches UM; required | Not required | $50,000 Eligibility / continuation rules apply |
| Wisconsin | 25/50/10 or $60,000 CSL Vehicle liability for road use | 25/50 BI required | Optional; 50/100 BI if purchased | Not required; MedPay selection applies | $50,000 |
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