Garage liability insurance and dealer bonds
Garage liability insurance
Vehicle liability for dealer plates
- Bodily injury / person
- $25,000
- Bodily injury / accident
- $50,000
- Property damage
- $25,000
A liability or garage insurance certificate is required for demonstration plates, and liability coverage must remain continuous.
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 South 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 South Carolina Department of Motor Vehicles.
Insurance and proof of coverage
Vehicle liability for dealer plates: $25,000 bodily injury per person, $50,000 bodily injury per accident and $25,000 property damage.
A liability or garage insurance certificate is required for demonstration plates, and liability coverage must remain continuous.
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 + $25,000 PD required
- Underinsured motorist (UIM)
- Optional; must be offered
- PIP / first-party medical
- Not required
UM is required at $25,000 bodily injury per person, $50,000 per accident and $25,000 property damage. UIM must be offered but does not have to be purchased. The ordinary retail/wholesale motor vehicle dealer bond is $50,000.
Certificate of liability/garage insurance
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
DLA-1B surety bond with Power of Attorney
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 |
|---|---|
| Ordinary dealer license, three-year term Wholesale-auction licensing has a separate annual schedule. | $150 |
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 DLA-1B bond with power of attorney and keep liability coverage continuous for dealer demonstration plates. Ordinary dealer licenses have a three-year term; wholesale-auction licensing has a separate schedule.
What does dealer insurance cost in South Carolina?
Required uninsured-motorist coverage belongs in a South Carolina dealer quote; UIM is a separate selection. Coastal locations and outdoor inventory can make storm coverage and deductibles important. The vehicle mix and customer demonstration activity also affect the coverage needed.
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 |
|---|---|---|---|---|
| South Carolina Established dealer Without inventory coverage | $1,413 | — | — | $75,000 garage liability per accident. Inventory coverage not included. |
| South Carolina Startup dealer Without inventory coverage | $1,798 | $501 | 9 payments of $162 | $75,000 garage liability per accident. Inventory coverage not included. |
| South Carolina Established dealer Liability + inventory | $3,755 | $1,071 | 10 payments of $306 | $75,000 garage liability per accident. $50,000 inventory limit; $10,000 maximum per auto. Named perils and collision. |
South Carolina $1,413 example: coverage and business details
20.9 years under current ownership · $75,000 garage liability per accident.
Inventory coverage not included.
$75,000 UM and UIM.
$0 liability deductible.
State requirements and official sources
Quoted October 2, 2026.
South Carolina $1,798 example: coverage and business details
New business · 0 employees, excluding owners · 0 dealer plates · $75,000 garage liability per accident.
Inventory coverage not included.
$75,000 UM and UIM.
State requirements and official sources
Quoted October 8, 2026.
South Carolina $3,755 example: coverage and business details
26 years in business · 2 dealer plates · $75,000 garage liability per accident.
$50,000 inventory limit; $10,000 maximum per auto.
$75,000 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 September 4, 2026.
South 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
- SCDMV dealer licenses
- SCDMV dealer license plates
- SCDMV dealer law changes under Act 51
- Renewing a South Carolina dealer license
- South Carolina DOI: mandatory UM and optional UIM
Policy wording controls actual coverage.