Garage liability insurance and dealer bonds
Garage liability insurance
Vehicle liability for road use
- Bodily injury / person
- $30,000
- Bodily injury / accident
- $60,000
- Property damage
- $25,000
Texas commercial auto financial-responsibility limits are $30,000/$60,000/$25,000. Dealer operations and specialty vehicle categories can need additional coverage.
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 Texas, 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 Texas Department of Motor Vehicles.
Insurance and proof of coverage
Vehicle liability for road use: $30,000 bodily injury per person, $60,000 bodily injury per accident and $25,000 property damage.
Texas commercial auto financial-responsibility limits are $30,000/$60,000/$25,000. Dealer operations and specialty vehicle categories can need additional coverage.
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)
- Part of UM; may be rejected
- PIP / first-party medical
- $2,500 unless rejected in writing
Texas auto policies include UM/UIM and at least $2,500 PIP unless the named insured rejects the applicable coverage in writing. The same selection requirements apply to commercial auto policies. Motor carrier and specialty vehicle rules can require higher liability limits.
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
Signed and dated surety bond with Power of Attorney, generally two-year term
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 |
|---|---|
| GDN application, per selected category Agency guide dated April 2024 and still linked by current GDN page; confirm payable fees in eLICENSING. | $700 |
| Metal dealer plate in cited guide Not a fee for every new HB718 plate type; confirm the current plate selected. | $90 |
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
Texas moved to metal plates under HB 718 in July 2025. Use the current TxDMV plate guidance and eLICENSING resources. Requirements for independent mobility dealers should not be applied to every used-car GDN.
What does dealer insurance cost in Texas?
Texas dealer pricing depends on the actual location, drivers, plate use and sales operation. UM/UIM and PIP selections affect the policy, while hail, flood and wind terms can materially change inventory protection. Different locations within Texas can produce different underwriting results.
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 |
|---|---|---|---|---|
| Texas Established dealer Without inventory coverage | $2,204 | — | — | $100,000 garage liability per accident. Inventory coverage not included. |
| Texas Established dealer Liability + inventory | $3,232 | — | — | $100,000 garage liability per accident. $50,000 inventory limit; $20,000 maximum per auto. Named perils and collision. |
| Texas Established dealer Liability + inventory | $4,848 | — | — | $100,000 garage liability per accident. $100,000 inventory limit; $10,000 maximum per auto. Named perils and collision. |
| Texas Established dealer Liability + inventory | $5,337 | $1,531 | 9 payments of $473 | $100,000 garage liability per accident. $200,000 inventory limit; $80,000 maximum per auto. |
Texas $2,204 example: coverage and business details
1.2 years under current ownership · $100,000 garage liability per accident.
Inventory coverage not included.
State requirements and official sources
Quoted August 27, 2026.
Texas $3,232 example: coverage and business details
3 years in business · 2 dealer plates · $100,000 garage liability per accident.
$50,000 inventory limit; $20,000 maximum per auto.
$0 liability deductible. Named perils and collision: $1,000 per auto. Hail, windstorm, flood and earthquake: $2,500 per auto.
State requirements and official sources
Quoted August 19, 2026.
Texas $4,848 example: coverage and business details
1.2 years under current ownership · $100,000 garage liability per accident.
$100,000 inventory limit; $10,000 maximum per auto.
Named perils and collision: $1,000 per auto. Hail, wind, flood and earthquake: $2,500 per auto.
State requirements and official sources
Quoted August 27, 2026.
Texas $5,337 example: coverage and business details
6 years in business · 0 employees, excluding owners · 2 dealer plates · $100,000 garage liability per accident.
$200,000 inventory limit; $80,000 maximum per auto.
$85,000 UM/UIM bodily injury and property damage.
Comprehensive and collision: $1,000 per auto / $5,000 per event. Wind/hail/flood: $2,500 per auto, with no event maximum.
State requirements and official sources
Quoted October 23, 2026.
Texas 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
- Retail GDN checklist LG100
- TxDMV Independent GDN license
- TxDMV eLICENSING Independent GDN guide
- TxDMV HB718 metal plate implementation and resources
- Texas DOI: commercial auto requirements
- Texas DOI: commercial auto consumer rights
- Texas Insurance Code Chapter 1952: UM/UIM and PIP
Policy wording controls actual coverage.