Arizona auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Vehicle liability for road use

Bodily injury / person: $25,000
Bodily injury / accident: $50,000
Property damage: $15,000

These are Arizona’s motor vehicle financial-responsibility limits. Coverage for the lot and other garage operations is a separate part of the policy.

Insurance requirements

Dealer bond

$100,000

Used retail dealer bond. Wholesale dealers have a separate $25,000 requirement.

Add a bond quote to your dealer insurance application.

Bond requirements

In Arizona, insurance and licensing requirements depend on your dealer category. Independent used-auto, wholesale, broker, RV, motorcycle, truck and boat businesses can have different requirements. Confirm your license category with Arizona Department of Transportation, Motor Vehicle Division.

Insurance and proof of coverage

Vehicle liability for road use: $25,000 bodily injury per person, $50,000 bodily injury per accident and $15,000 property damage.

These are Arizona’s motor vehicle financial-responsibility limits. Coverage for the lot and other garage operations is a separate part of the policy.

UM, UIM and medical coverage

BI means bodily injury. PD means property damage. For example, 25/50 BI means $25,000 per person and $50,000 per accident.

Uninsured motorist (UM): Optional; 25/50 BI if purchased
Underinsured motorist (UIM): Optional; 25/50 BI if purchased
PIP / first-party medical: Not required

Insurers must offer UM and UIM. You may select either coverage or reject it. When purchased, the minimum bodily injury limits are $25,000 per person and $50,000 per accident.

Your lease, lender or exposure to a serious accident may call for higher limits. Garage liability does not automatically insure the value of inventory or customers’ vehicles.

The dealer bond is a separate requirement

Used retail dealer: $100,000, on form 38-1301 with power of attorney. Wholesale dealer: $25,000.

The bond amount is its face amount, not the price you pay. A surety prices the bond separately, and you may have to reimburse it for claims it pays. A dealer bond does not replace garage liability or inventory insurance. You can add a bond quote to the dealer insurance application.

State licensing fees

State fee	Amount
Dealer licensing fee	$100
Application fee	$15
Dealer plate, plus postage	$30

These state fees are separate from insurance and bond premiums. Other licensing and startup expenses may apply. Confirm the payable amount in the current state application or portal.

A practical filing detail

Retail and wholesale licenses have different permissions and bond amounts. Decide which license fits the business before ordering the bond or applying for coverage.

What does dealer insurance cost in Arizona?

Inventory value, theft protection and how vehicles are stored affect an Arizona dealer quote. Retail sales with customer test drives create a different exposure from a wholesale operation. Keep the $100,000 retail dealer bond face amount separate from the insurance premium.

Arizona dealer insurance costs and coverage comparison · What affects your insurance premium

Get your dealer insurance quote

Complete the dealer insurance application online. You can add a dealer bond quote in the same application.

Keep reading

Sources & resources

Policy wording controls actual coverage.