Garage liability insurance and dealer bonds
Garage liability insurance
Dealer vehicle liability minimums
- Bodily injury / person
- $25,000
- Bodily injury / accident
- $50,000
- Property damage
- $25,000
Continuous coverage must be in the dealer’s name for covered operation of vehicles owned or offered for sale, including customer use.
Insurance requirementsDealer bond
$50,000
Bond face amount. The premium you pay is priced separately.
Add a bond quote to your dealer insurance application.
Bond requirementsIn Kansas, 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 Kansas Department of Revenue, Division of Vehicles, Dealer Licensing.
Insurance and proof of coverage
Dealer vehicle liability minimums: $25,000 bodily injury per person, $50,000 bodily injury per accident and $25,000 property damage.
Continuous coverage must be in the dealer’s name for covered operation of vehicles owned or offered for sale, including customer use.
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 required
- Underinsured motorist (UIM)
- 25/50 BI required
- PIP / first-party medical
- $4,500 medical + other required benefits
PIP includes $4,500 medical and $4,500 rehabilitation benefits, plus disability, substitution, funeral and survivor benefits. The medical amount is not the total PIP package. UM and UIM bodily injury coverage are required at a minimum of $25,000 per person/$50,000 per accident; higher-limit selection rules also apply.
Policy on file with the Division; certificate or declarations page is specified by the older official handbook. Confirm current portal upload format.
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
A $50,000 dealer surety bond is required for the ordinary used motor vehicle dealer category.
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
Current statutes state a $50,000 dealer bond and expressly connect dealer liability coverage to Kansas statutory limits. Older handbook figures can be different. Use the current statutes and licensing portal when preparing the application.
What does dealer insurance cost in Kansas?
Kansas quotes need the required liability, UM/UIM and PIP benefits. When inventory is covered, the lot’s protection and wind/hail terms matter too. Compare the same first-party coverages and deductibles when reviewing two different annual premiums.
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 |
|---|---|---|---|---|
| Kansas Startup dealer Without inventory coverage | $1,202 | $134 | 9 payments of $131 | $100,000 garage liability per accident. Inventory coverage not included. |
| Kansas Established dealer Without inventory coverage | $1,465 | $515 | 9 payments of $117 | $100,000 garage liability per accident. Inventory coverage not included. |
| Kansas Dealer with inventory coverage Liability + inventory | $2,969 | — | — | $100,000 garage liability per accident. $30,000 inventory limit. |
Kansas $1,202 example: coverage and business details
New business · 3 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$50,000 uninsured motorist coverage; PIP included.
$1,000 liability deductible.
State requirements and official sources
Quoted October 7, 2026.
Kansas $1,465 example: coverage and business details
2 years in business · 2 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$100,000 UM; PIP included; $100,000 damage to rented premises; $100,000 personal/advertising injury.
State requirements and official sources
Quoted September 14, 2026.
Kansas $2,969 example: coverage and business details
4 dealer plates · $100,000 garage liability per accident.
$30,000 inventory limit.
$100,000 UM; PIP included; $100,000 damage to rented premises; $100,000 personal/advertising injury; $100,000 acts/errors/omissions aggregate.
Collision: $1,000. Other covered causes: $1,000 per auto / $5,000 per event. Wind/hail/flood: $1,000, with no aggregate maximum.
State requirements and official sources
Quoted September 17, 2026.
Kansas 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 Kansas Statutes 8-2405: Insurance required of dealers
- 2026 Kansas Statutes 40-3107
- 2026 Kansas Statutes 8-2404
- KDOR Dealer Licensing
- Kansas Department of Insurance: minimum required coverages
Policy wording controls actual coverage.