Garage liability insurance and dealer bonds
Garage liability insurance
Dealer liability minimums
- Bodily injury / person
- $100,000
- Bodily injury / accident
- $300,000
- Property damage
- $50,000
Dealer liability insurance must cover the established place of business.
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 Indiana, 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 Indiana Secretary of State, Auto Dealer Services Division.
Insurance and proof of coverage
Dealer liability minimums: $100,000 bodily injury per person, $300,000 bodily injury per accident and $50,000 property damage.
Dealer liability insurance must cover the established place of business.
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)
- 25/50 BI + $25,000 PD unless rejected
- Underinsured motorist (UIM)
- $50,000 BI unless rejected
- PIP / first-party medical
- Not required
New auto liability policies include UM and UIM unless rejected in writing. The UM minimum is $25,000 per person/$50,000 per accident for bodily injury, plus $25,000 property damage. UIM has a $50,000 bodily injury minimum. These selection rules are separate from the dealer’s $100,000/$300,000/$50,000 liability requirement.
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 in favor of Secretary of State; use State Form 53966 revision R7/03-24 and sign it.
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 |
|---|---|
| Auto or auction dealer license fee; other items extra | $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
Insurance and bond updates go through the Dealer Portal. The agency specifies State Form 53966 revision R7/03-24 for the bond and rejects older versions. A lapse can suspend the license.
What does dealer insurance cost in Indiana?
An Indiana package may combine garage liability with dealers physical damage. Compare the total inventory limit, maximum value per vehicle and both comprehensive and collision deductibles. Floorplan companies can require specific insurance terms and loss-payee wording.
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 |
|---|---|---|---|---|
| Indiana Dealer liability quote Without inventory coverage | $1,483 | $199 | 9 payments of $160 | $350,000 garage liability per accident. Inventory coverage not included. |
| Indiana Established dealer Liability + inventory | $2,276 | $735 | 9 payments of $193 | $350,000 garage liability per accident. $50,000 inventory limit; $10,000 maximum per auto. Flood excluded. |
| Indiana Dealer with liability and inventory coverage Liability + inventory | $3,264 | $820 | 9 payments of $289 | $500,000 garage liability limit. $250,000 total inventory limit, with a $25,000 maximum per auto. |
| Indiana Startup dealer Liability + inventory | $5,613 | — | — | $350,000 garage liability per accident. $400,000 inventory limit; $50,000 maximum per auto. |
Indiana $1,483 example: coverage and business details
4 dealer plates · $350,000 garage liability per accident.
Inventory coverage not included.
$350,000 UM and UIM.
$1,000 liability deductible.
State requirements and official sources
Quoted September 10, 2026.
Indiana $2,276 example: coverage and business details
2 years in business · 2 dealer plates · $350,000 garage liability per accident.
$50,000 inventory limit; $10,000 maximum per auto.
$350,000 UM and UIM.
$0 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: $1,000 per auto, with no event maximum. Flood is excluded.
State requirements and official sources
Quoted August 13, 2026.
Indiana $3,264 example: coverage and business details
2 years of prior insurance history · 3 employees · 4 dealer plates · $500,000 garage liability limit.
$250,000 total inventory limit, with a $25,000 maximum per auto.
$1,000 comprehensive deductible and $1,000 collision deductible.
Floor-plan loss payees: NextGear Capital and Automotive Finance Corporation (AFC).
State requirements and official sources
Quoted October 6, 2026.
Indiana $5,613 example: coverage and business details
New business · 1 employee, excluding owners · 4 dealer plates · $350,000 garage liability per accident.
$400,000 inventory limit; $50,000 maximum per auto.
$350,000 UM and UIM; $50,000 acts/errors/omissions aggregate with a $500 deductible; $100,000 damage to rented premises; $350,000 personal/advertising injury; false-pretense and theft-buyback coverage included.
$1,000 liability deductible. Collision and other covered causes: $1,000 / $5,000 event maximum. Wind/hail/flood: $1,000, with no event maximum. Theft buyback: $1,000 deductible.
State requirements and official sources
Quoted September 10, 2026.
Indiana 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
- Indiana Auto Dealer Services insurance requirements
- Indiana Auto Dealer Services bond requirements
- Indiana Auto Dealer Services fee chart
- Indiana guidance, policies and fees
- Indiana DOI: uninsured and underinsured coverage requirements
Policy wording controls actual coverage.