Michigan auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Lowest selectable vehicle liability limits

Bodily injury / person: $50,000
Bodily injury / accident: $100,000
Property damage / out of state: $10,000
Michigan property protection (PPI): $1,000,000

These lower limits require a valid selection. The default is $250,000/$500,000 bodily injury plus $10,000 out-of-state property damage. Michigan no-fault coverage is also required.

Insurance requirements

Dealer bond

$25,000

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

Add a bond quote to your dealer insurance application.

Bond requirements

In Michigan, 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 Michigan Department of State, Business Licensing Section.

Insurance and proof of coverage

Lowest selectable vehicle liability limits: $50,000 bodily injury per person, $100,000 bodily injury per accident and $10,000 property damage.

These lower limits require a valid selection. The default is $250,000/$500,000 bodily injury plus $10,000 out-of-state property damage. Michigan no-fault coverage is also required.

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
Underinsured motorist (UIM): Optional
PIP / first-party medical: Business named insured: $250,000, $500,000 or unlimited medical

A business or company named insured may choose $250,000, $500,000 or unlimited PIP medical. It cannot select the $50,000 Medicaid option, the $250,000 option with exclusions, or the no-PIP-medical option. Individual named insureds follow different eligibility rules. Other PIP benefits also apply.

Michigan requires $1 million property protection insurance for covered damage in Michigan. The $10,000 liability property-damage limit applies outside Michigan. UM and UIM are optional.

ACORD 25 for any vehicle/all owned vehicles; exact dealer business name.

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 $25,000 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

State fee	Amount
Class B license fee shown in application	$160

Plate fees and other charges additional.

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

A Class B used dealer needs a registered repair facility or qualifying service agreement and pre-licensing training. Class D brokers and Class W wholesalers have different permissions; plate use affects the insurance documentation.

What does dealer insurance cost in Michigan?

Michigan dealer pricing needs a full no-fault review. The selected liability limits, PIP medical level and required property protection all matter. A company named insured has different PIP choices from an individual, so a quote cannot be compared on liability alone.

Michigan 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.