Pennsylvania auto dealership insurance

Garage liability insurance and dealer bonds

Garage liability insurance

Vehicle liability minimums

Bodily injury / person: $15,000
Bodily injury / accident: $30,000
Property damage: $5,000
First-party medical / covered autos: $5,000

Dealer-plate insurance must cover as many vehicles as the number of plates requested. Covered automobiles also need $5,000 first-party medical benefits.

Insurance requirements

Dealer bond

$20,000

$20,000 manufacturer/dealer bond per location. A full issuing-agent authorization has a separate $30,000 bond requirement.

Add a bond quote to your dealer insurance application.

Bond requirements

In Pennsylvania, 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 Pennsylvania Department of State licensing board; PennDOT for dealer identification and plates.

Insurance and proof of coverage

Vehicle liability minimums: $15,000 bodily injury per person, $30,000 bodily injury per accident and $5,000 property damage.

Dealer-plate insurance must cover as many vehicles as the number of plates requested. Covered automobiles also need $5,000 first-party medical benefits.

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 in writing
Underinsured motorist (UIM): May be rejected in writing
PIP / first-party medical: $5,000 first-party medical

Pennsylvania requires $5,000 first-party medical benefits for covered automobiles. Motorcycles, motor-driven cycles, off-highway recreational vehicles and the other listed statutory exceptions have different rules. UM and UIM must be offered, but either may be rejected through the required signed forms.

Form MV-349 requires acceptable proof of insurance and the dealer-plate certificate or insurer letter. Under 31 Pa. Code §67.26, issue an insurance ID card for each set of insured dealer plates and carry it in the vehicle using that plate.

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

MV-375 continuous 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

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

The $20,000 dealer bond applies to each place of business. The separate $30,000 full issuing-agent bond serves a different role. Explain both functions if your dealership will also issue titles or registrations.

What does dealer insurance cost in Pennsylvania?

Pennsylvania dealer-plate coverage must account for the number of plates requested. Required first-party medical benefits and UM/UIM selections also belong in the quote review. Dealer bonds and any separate issuing-agent bond should be budgeted apart from insurance.

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
Pennsylvania Dealer with liability and inventory coverage Liability + inventory	$3,023	$1,030	9 payments of $250	$50,000 garage liability per accident. $50,000 inventory limit; $12,000 maximum per auto.

Pennsylvania $3,023 example: coverage and business details

1 year in business · 6 dealer plates · $50,000 garage liability per accident.

$50,000 inventory limit; $12,000 maximum per auto.

$50,000 non-stacked UM and UIM; $5,000 first-party benefits.

$1,000 liability deductible. Collision: $1,000 per auto. Other covered causes: $1,000 per auto / $5,000 per event. Theft: $2,500 per auto / $12,500 per event. Wind, hail and flood: $1,000 per auto, with no event maximum.

State requirements and official sources

Quoted September 28, 2026.

Pennsylvania 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.