Arkansas auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Liability on vehicles offered for sale

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

Used dealers must show liability coverage on every vehicle offered for sale, meeting the Motor Vehicle Safety Responsibility Act limits.

Insurance requirements

Dealer bond

$25,000

Bond face amount. The premium you pay is priced separately.

Add a bond quote to your dealer insurance application.

Bond requirements

In Arkansas, 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 Arkansas State Police, Used Motor Vehicle Dealer Section.

Insurance and proof of coverage

Liability on vehicles offered for sale: $25,000 bodily injury per person, $50,000 bodily injury per accident and $25,000 property damage.

Used dealers must show liability coverage on every vehicle offered for sale, meeting the Motor Vehicle Safety Responsibility Act limits.

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): May be rejected
Underinsured motorist (UIM): Optional
PIP / first-party medical: May be rejected; private-passenger rules apply

Arkansas allows rejection of UM. UIM is optional. For policies covering private-passenger vehicles, first-party benefits include $5,000 medical, statutory work-loss benefits and $5,000 accidental-death benefits unless rejected in writing. These benefits are separate from liability coverage.

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

$25,000 bond; statutory option for a $100,000 bond covering multiple licensed locations instead of separate location bonds.

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
Primary dealer application/license or renewal, annually	$250
Satellite location, annually	$125

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

The statute permits a $100,000 bond covering multiple licensed locations as an alternative to individual $25,000 location bonds. Check how the licensing office wants your locations documented.

What does dealer insurance cost in Arkansas?

The policy needs to cover the vehicles offered for sale. The number of drivers, customer demonstrations, lot protection and the inventory limit affect the coverage being priced. Multiple sales locations also change the risk the insurer is reviewing.

Real quotes issued by our agency, Pro Risk Solutions dba dealership.insure. Your price depends on your dealership and coverage.

Dealer example	Annual premium	Down payment	Monthly payments	Coverage
Arkansas Startup dealer Without inventory coverage	$3,036	$928	9 payments of $254	$75,000 garage liability per accident. Inventory coverage not included.

Arkansas $3,036 example: coverage and business details

New business · 0 employees, excluding owners · 4 dealer plates · $75,000 garage liability per accident.

Inventory coverage not included.

State requirements and official sources

Quoted August 26, 2026.

Arkansas 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.