Colorado 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

Colorado requires liability coverage for vehicles operated on public roads. Your garage policy also needs to address the dealership’s premises and operations.

Insurance requirements

Dealer bond

$50,000

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

Add a bond quote to your dealer insurance application.

Bond requirements

In Colorado, 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 Colorado Department of Revenue, Auto Industry Division / Motor Vehicle Dealer Board.

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.

Colorado requires liability coverage for vehicles operated on public roads. Your garage policy also needs to address the dealership’s premises and operations.

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 in writing
Underinsured motorist (UIM): Included in UM; may be rejected
PIP / first-party medical: Not required

UM/UIM is offered with the auto liability policy and can be waived in writing. Medical payments coverage is separate from PIP; Colorado’s optional-coverage rules also address medical payments.

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

$50,000 for dealer/wholesaler; small-trailer dealers under 2,000 pounds have a separate $5,000 requirement.

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

Check the linked licensing agency for the current application, renewal and plate fees.

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 dealer and wholesaler checklist includes financial, premises, background-check, education and examination materials. Review the current checklist before committing to a location or applying.

What does dealer insurance cost in Colorado?

For a dealer buying physical damage coverage, outdoor storage, hail exposure and the wind/hail deductible deserve close attention. A quote with a low annual premium and a large catastrophe deductible can leave the dealer with a very different amount to pay after a storm.

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
Colorado Startup dealer Without inventory coverage	$2,334	$583	9 payments of $218	$65,000 garage liability per accident. Inventory coverage not included.

Colorado $2,334 example: coverage and business details

New business · 0 employees, excluding owners · 3 dealer plates · $65,000 garage liability per accident.

Inventory coverage not included.

State requirements and official sources

Quoted October 21, 2026.

Colorado 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.