Garage liability insurance and dealer bonds
Garage liability insurance
Vehicle liability for dealer plates
- Bodily injury / person
- $50,000
- Bodily injury / accident
- $100,000
- Property damage
- $25,000
Maintain insurance or authorized self-insurance on each dealer plate while its registration is valid. These liability limits apply to policies effective January 1, 2025 or later.
Insurance requirementsDealer bond
$50,000
Initial bond requirement; continuation rules apply.
Add a bond quote to your dealer insurance application.
Bond requirementsIn Virginia, 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 Virginia Motor Vehicle Dealer Board.
Insurance and proof of coverage
Vehicle liability for dealer plates: $50,000 bodily injury per person, $100,000 bodily injury per accident and $25,000 property damage.
Maintain insurance or authorized self-insurance on each dealer plate while its registration is valid. These liability limits apply to policies effective January 1, 2025 or later.
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 + $25,000 PD minimum
- Underinsured motorist (UIM)
- Matches UM; required
- PIP / first-party medical
- Not required
UM/UIM normally match the policy’s liability limits. The insured may reject additional limits above the legal floor; that is different from rejecting UM/UIM entirely. The current minimum is $50,000/$100,000 bodily injury and $25,000 property damage.
Per-plate liability insurance/self-insurance certification
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
Bond for three consecutive years; continuation depends on claim history and applicable renewal option
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 |
|---|---|
| Statutory original-dealer Recovery Fund charge for each of first three years Additional to other fees. Statute allows the Board to suspend/reinstate fund-fee collection; confirm current collection with MVDB. | $350 |
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
Dealer-plate liability coverage must remain in place even for an unused plate while its registration is valid. Review the plate count when adding vehicles or changing operations.
What does dealer insurance cost in Virginia?
Virginia dealer plates need continuous liability coverage, and the current liability and UM/UIM minimums belong in the cost comparison. Higher selected limits, driver records, customer demonstrations and the value of inventory can all change the 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 |
|---|---|---|---|---|
| Virginia Established dealer Without inventory coverage | $1,914 | $703 | 10 payments of $135 | $125,000 garage liability per accident. Inventory coverage not included. |
Virginia $1,914 example: coverage and business details
2 years under current ownership · 0 employees, excluding owners · 2 dealer plates · $125,000 garage liability per accident.
Inventory coverage not included.
$125,000 UM and UIM.
$500 liability deductible.
State requirements and official sources
Quoted August 4, 2026.
Virginia 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
- Virginia Code §46.2-1547: Dealer plates and insurance
- Virginia Code §46.2-1527.1: Recovery Fund and initial bond
- MVDB how to become a dealer
- Virginia DMV: liability insurance minimums
- Virginia Code §38.2-2206: UM/UIM
- Virginia SCC: commercial auto and dealer minimum-limit order
Policy wording controls actual coverage.