Garage liability insurance and dealer bonds
Garage liability insurance
$25,000 combined single limit
At least $25,000 combined single-limit liability plus $10,000 PIP. Nonfranchised dealers may use garage liability or general liability together with business auto coverage.
Insurance requirementsDealer bond
$25,000
Bond face amount. The premium you pay is priced separately.
Add a bond quote to your dealer insurance application.
Bond requirementsIn Florida, 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 Florida Department of Highway Safety and Motor Vehicles (FLHSMV).
Insurance and proof of coverage
Dealer liability minimum: $25,000 combined single-limit bodily injury and property damage liability.
At least $25,000 combined single-limit liability plus $10,000 PIP. Nonfranchised dealers may use garage liability or general liability together with business auto coverage.
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; selection/rejection rules apply
- Underinsured motorist (UIM)
- Part of optional UM coverage
- PIP / first-party medical
- $10,000
Florida’s dealer licensing requirement is $25,000 CSL for bodily injury and property damage, plus $10,000 personal injury protection. UM includes underinsured-motorist protection. Written rejection and offer requirements depend on the policy under §627.727, including whether it covers specifically insured vehicles.
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 surety bond or irrevocable letter of credit.
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 |
|---|---|
| Initial license first year, plus other legally required fees | $300 |
| One-year renewal, plus other legally required fees | $75 |
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
Nonfranchised dealers may meet the statute through garage liability or general liability together with business automobile coverage. The required $10,000 PIP is separate from the $25,000 combined liability limit.
What does dealer insurance cost in Florida?
Florida dealer quotes need the dealer liability requirement and PIP. Location, coastal or flood exposure, outdoor inventory, wind deductibles and prior insurance history also matter. Compare the storm terms along with the annual price when adding dealers physical damage.
Real dealer insurance quote examples. Your price depends on your dealership and coverage.
| Dealer example | Annual premium | Down payment | Monthly payments | Coverage |
|---|---|---|---|---|
| Florida Dealer liability quote Without inventory coverage | $1,807 | — | — | $30,000 garage liability per accident. Inventory coverage not included. |
| Florida Established dealer Without inventory coverage | $1,950 | $540 | 9 payments of $174 | $30,000 garage liability per accident. Inventory coverage not included. |
| Florida Startup dealer Liability + inventory | $4,515 | $1,288 | 9 payments of $395 | $100,000 garage liability per accident. $100,000 inventory limit; $80,000 maximum per auto. Wind, hail and flood excluded. |
| Florida Established dealer Liability + inventory | $5,752 | $1,653 | 9 payments of $501 | $30,000 garage liability per accident. $250,000 inventory limit; $50,000 maximum per auto. Wind, hail and flood excluded. |
Florida $1,807 example: coverage and business details
$30,000 garage liability per accident.
Inventory coverage not included.
PIP with work-loss coverage included.
$1,000 liability deductible.
State requirements and official sources
Quoted October 1, 2026.
Florida $1,950 example: coverage and business details
2 years in business · 4 dealer plates · $30,000 garage liability per accident.
Inventory coverage not included.
$10,000 PIP.
$500 liability deductible.
State requirements and official sources
Quoted October 1, 2026.
Florida $4,515 example: coverage and business details
New business · 2 dealer plates · $100,000 garage liability per accident.
$100,000 inventory limit; $80,000 maximum per auto.
$30,000 non-stacked UM; $10,000 PIP; $5,000 auto medical payments; $2,000 premises medical payments.
Collision and other covered causes: $1,000 per auto / $5,000 per event. Wind, hail and flood are excluded.
State requirements and official sources
Quoted October 2, 2026.
Florida $5,752 example: coverage and business details
1 year in business · 4 dealer plates · $30,000 garage liability per accident.
$250,000 inventory limit; $50,000 maximum per auto.
PIP with work-loss coverage; $50,000 false-pretense coverage per auto.
$1,000 liability deductible. Collision: $1,000 per auto. Other covered causes: $1,000 per auto / $5,000 per event. Theft: $2,500 per auto / $12,500 per event. Wind, hail and flood are excluded.
State requirements and official sources
Quoted September 16, 2026.
Florida 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
- 2026 Florida Statutes 320.27
- FLHSMV dealer application HSMV 86056
- Florida Statutes §627.727: UM/UIM selection
Policy wording controls actual coverage.