Garage liability insurance and dealer bonds
Garage liability insurance
Vehicle liability for dealer-plate use
- Bodily injury / person
- $50,000
- Bodily injury / accident
- $100,000
- Property damage
- $50,000
These limits apply to policies issued or renewed on or after July 1, 2025. The dealer insurance certificate must identify the dealer plate count.
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 North Carolina, 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 North Carolina State Highway Patrol, Investigative Services Unit, Dealer Section.
Insurance and proof of coverage
Vehicle liability for dealer-plate use: $50,000 bodily injury per person, $100,000 bodily injury per accident and $50,000 property damage.
These limits apply to policies issued or renewed on or after July 1, 2025. The dealer insurance certificate must identify the dealer plate count.
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)
- 50/100 BI + $50,000 PD; fleet exceptions
- Underinsured motorist (UIM)
- Matches UM BI; fleet exceptions
- PIP / first-party medical
- Not required
For policies subject to the UM/UIM mandate, UM bodily injury and property damage normally match liability, with permitted selections no lower than $50,000/$100,000 bodily injury and $50,000 property damage. UIM bodily injury must match UM bodily injury.
Policies covering solely statutory commercial motor vehicles or solely fleet vehicles are exempt from the UM/UIM mandate. A commercial policy is not automatically exempt just because the named insured is a business. The vehicles and fleet classification matter.
Garage certificate states plate count and certificate holder NCSHP Dealer Section, 3129 Mail Service Center, Raleigh NC 27697.
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. Each additional location requires $25,000. Alternative: Cash bond.
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 |
|---|---|
| Dealer license annual rate | $115.50 |
| Dealer license for required two-year term | $231 |
| First five dealer plates, each per year | $46.25 |
| Additional dealer plates, each per year | $23.13 |
| Sales representative, each per year | $25.50 |
County RTA fees may apply. Course, insurance and bond costs 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 current dealer packet comes from NCSHP Investigative Services. Its insurance certificate instructions name NCSHP Dealer Section, 3129 Mail Service Center, Raleigh, NC 27697 as certificate holder and require the plate count. Use the current ISU forms.
What does dealer insurance cost in North Carolina?
North Carolina’s higher vehicle liability limits affect policies issued or renewed after July 1, 2025. UM/UIM treatment also depends on the policy and applicable fleet rules. Coastal inventory storage, storm terms and delivery activity can be relevant to the dealer’s quote.
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 |
|---|---|---|---|---|
| North Carolina Startup dealer Without inventory coverage | $1,775 | $483 | 10 payments of $144 | $150,000 garage liability per accident. Inventory coverage not included. |
| North Carolina Established dealer Without inventory coverage | $2,520 | $824 | 10 payments of $189 | $150,000 garage liability per accident. Inventory coverage not included. |
| North Carolina Startup dealer Liability + inventory | $3,882 | $1,100 | 10 payments of $308 | $150,000 garage liability per accident. $50,000 inventory limit; $10,000 maximum per auto. Named perils and collision. |
| North Carolina Established dealer Liability + inventory | $3,968 | $1,117 | 10 payments of $316 | $150,000 garage liability per accident. $50,000 inventory limit; $10,000 maximum per auto. Named perils and collision. |
North Carolina $1,775 example: coverage and business details
New business · 0 employees, excluding owners · 2 dealer plates · $150,000 garage liability per accident.
Inventory coverage not included.
$150,000 UM and UIM.
State requirements and official sources
Quoted October 22, 2026.
North Carolina $2,520 example: coverage and business details
1 year under current ownership · 0 employees, excluding owners · 5 dealer plates · $150,000 garage liability per accident.
Inventory coverage not included.
$150,000 UM and UIM.
State requirements and official sources
Quoted September 16, 2026.
North Carolina $3,882 example: coverage and business details
New business · 2 dealer plates · $150,000 garage liability per accident.
$50,000 inventory limit; $10,000 maximum per auto.
$150,000 UM and UIM.
Named perils and collision: $1,000 per auto. Hail, windstorm, flood and earthquake: $2,500 per auto.
State requirements and official sources
Quoted October 21, 2026.
North Carolina $3,968 example: coverage and business details
1 year under current ownership · 0 employees, excluding owners · 5 dealer plates · $150,000 garage liability per accident.
$50,000 inventory limit; $10,000 maximum per auto.
$150,000 UM and UIM.
Named perils and collision: $1,000 per auto. Hail, wind, flood and earthquake: $1,500 per auto.
State requirements and official sources
Quoted September 9, 2026.
North Carolina 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
- NCSHP New Dealer Packet, ISU forms revised February 2026
- NCSHP ISU-415 Minimum Dealer License Requirements
- North Carolina General Statutes 20-288
- North Carolina General Statutes §20-279.21: limits and fleet exceptions
- North Carolina DOI: liability changes effective July 1, 2025
Policy wording controls actual coverage.