New Mexico auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Vehicle liability for road use

Bodily injury / person: $25,000
Bodily injury / accident: $50,000
Property damage: $10,000

Coverage for dealer and coach plates must address the vehicles and plate use. These amounts are the state’s vehicle financial-responsibility minimums.

Insurance requirements

Dealer bond

$50,000

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

Add a bond quote to your dealer insurance application.

Bond requirements

In New Mexico, 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 New Mexico Taxation and Revenue Department, Motor Vehicle Division, Dealer Licensing Bureau.

Insurance and proof of coverage

Vehicle liability for road use: $25,000 bodily injury per person, $50,000 bodily injury per accident and $10,000 property damage.

Coverage for dealer and coach plates must address the vehicles and plate use. These amounts are the state’s vehicle financial-responsibility minimums.

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): May be rejected after a proper offer
Underinsured motorist (UIM): Part of UM; may be rejected
PIP / first-party medical: Not required

UM/UIM must be meaningfully offered and may be rejected through the required process. New Mexico requires per-vehicle UM/UIM offers and disclosure forms. Review the selection for each vehicle covered by the offer.

MVD manual identifies insurance, which may be garage liability, for dealer/coach plate documentation.

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

Use the MVD licensing manual and current business portal together. Some linked application guidance is older. Confirm the current fee, required training and insurance proof for your license and dealer plates.

What does dealer insurance cost in New Mexico?

New Mexico quotes depend on dealer-plate use, drivers, sales operations and inventory protection. UM/UIM selections should be reviewed carefully, including applicable per-vehicle offers. The dealer bond and road-use liability have different purposes and separate costs.

New Mexico 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.