Kentucky auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Dealer garage liability minimums

Bodily injury / person: $250,000
Bodily injury / occurrence: $500,000
Property damage: $250,000

The insurance company submits the certificate when requested by the Motor Vehicle Commission.

Dealer bond

$25,000 or more, if required

The Commission decides whether a bond is needed and sets the amount. Its dealer checklist states a $25,000 minimum when required.

Add a bond quote to your dealer insurance application.

Bond requirements

In Kentucky, 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 Kentucky Motor Vehicle Commission.

Insurance and proof of coverage

Dealer garage liability minimums: $250,000 bodily injury per person, $500,000 bodily injury per accident and $250,000 property damage.

The insurance company submits the certificate when requested by the Motor Vehicle Commission.

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 unless rejected in writing
Underinsured motorist (UIM): Optional; available on request
PIP / first-party medical: $10,000 basic PIP; exceptions apply

Basic PIP is $10,000 per person per accident for covered vehicles. Motorcycles and valid no-fault rejections have separate rules; rejecting no-fault does not automatically eliminate guest PIP obligations. UM may be rejected in writing. UIM must be made available on request.

Certificate submitted by the insurance company, not the agent. Commission tells applicant when certificate is needed.

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

The Commission may require a bond. Its March 2025 checklist describes a minimum of $25,000 when a bond is required. The Commission sets the amount for the application; this is not a universal fixed bond 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

State fee	Amount
Application fee	$175
Criminal background check per listed owner	$25

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 Commission’s March 2025 checklist says the insurance company, rather than the agent, submits the certificate when the Commission requests it. Bonding is conditional; ask the Commission what amount, if any, applies to your application.

What does dealer insurance cost in Kentucky?

Kentucky’s dealer garage liability limits make a minimum-policy comparison different from an ordinary auto quote. Basic PIP and the selected UM/UIM coverage also affect the package. The Commission determines whether a dealer bond is required and its amount.

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
Kentucky Dealer with liability and inventory coverage Liability + inventory	$8,350.81	$2,394.75	9 payments of $724.34	$750,000 garage liability per accident. $350,000 inventory limit; $30,000 maximum per auto.

Kentucky $8,350.81 example: coverage and business details

6 years in business · 2 employees, excluding owners · 2 dealer plates · $750,000 garage liability per accident.

$350,000 inventory limit; $30,000 maximum per auto.

$100,000 UM and UIM; $10,000 PIP with a $250 deductible.

$250 liability deductible. $1,000 per auto for comprehensive and collision, with a $5,000 maximum per event. Wind, hail and flood: $2,500 per auto, with no event maximum.

State requirements and official sources

Quoted September 9, 2026.

Kentucky 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.