Garage liability insurance and dealer bonds
Garage liability insurance
Dealer vehicle liability minimums
- Bodily injury / person
- $30,000
- Bodily injury / accident
- $60,000
- Property damage
- $10,000
Maintain liability on vehicles held for sale or resale, together with the required UM, UIM and no-fault coverages.
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 Minnesota, 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 Minnesota Department of Public Safety, Driver and Vehicle Services.
Insurance and proof of coverage
Dealer vehicle liability minimums: $30,000 bodily injury per person, $60,000 bodily injury per accident and $10,000 property damage.
Maintain liability on vehicles held for sale or resale, together with the required UM, UIM and no-fault coverages.
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
- $40,000 total: $20,000 medical + $20,000 nonmedical
Minnesota requires $25,000 per person/$50,000 per accident for both UM and UIM bodily injury coverage. Minimum no-fault benefits total $40,000 per person: $20,000 medical and $20,000 nonmedical. Motorcycle and other vehicle-category rules differ.
Use DVS dealer forms and maintain coverage continuously.
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
| State fee | Amount |
|---|---|
| Initial ordinary dealer license | $250 |
| Ordinary dealer renewal | $150 |
Plate and other fees extra.
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 ordinary used motor vehicle dealer category differs from wholesale, broker, salvage and other classes. The listed liability, UM/UIM and no-fault components are separate requirements; show all of them to the agent.
What does dealer insurance cost in Minnesota?
Minnesota’s required UM, UIM and no-fault benefits belong in the cost comparison alongside liability. PIP includes separate medical and nonmedical amounts. Inventory value, storage and physical-damage deductibles are additional considerations for dealers protecting their cars.
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 |
|---|---|---|---|---|
| Minnesota Established dealer Without inventory coverage | $2,385 | $785 | 10 payments of $183 | $100,000 garage liability per accident. Inventory coverage not included. |
| Minnesota Startup dealer Without inventory coverage | $3,688 | $958 | 10 payments of $312 | $100,000 garage liability per accident. Inventory coverage not included. |
| Minnesota Startup dealer Without inventory coverage | $3,892 | $999 | 10 payments of $330 | $500,000 garage liability per accident. Inventory coverage not included. |
Minnesota $2,385 example: coverage and business details
About 1 year in business · 0 employees, excluding owners · 2 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$50,000 UM and UIM; PIP included; $50,000 limited tire liability.
State requirements and official sources
Quoted August 4, 2026.
Minnesota $3,688 example: coverage and business details
New business · 0 employees, excluding owners · 2 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$50,000 UM and UIM; PIP included.
State requirements and official sources
Quoted September 22, 2026.
Minnesota $3,892 example: coverage and business details
New business · 0 employees, excluding owners · $500,000 garage liability per accident.
Inventory coverage not included.
$50,000 UM and UIM; PIP included.
State requirements and official sources
Quoted October 12, 2026.
Minnesota 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
- Minnesota Motor Vehicle Dealer License, updated September 2026
- Minnesota DPS Dealers
- Minnesota Department of Commerce: auto insurance basics
- Minnesota Department of Commerce: minimum coverage guide
Policy wording controls actual coverage.