Garage liability insurance and dealer bonds
Garage liability insurance
Vehicle liability for road use
- Bodily injury / person
- $25,000
- Bodily injury / accident
- $50,000
- Property damage
- $10,000
Inventory vehicles driven on public highways need liability coverage. Wisconsin permits 25/50/10 split limits or a $60,000 CSL.
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 Wisconsin, 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 Wisconsin Department of Transportation, Dealer and Agent Section.
Insurance and proof of coverage
Vehicle liability for road use: $25,000 bodily injury per person, $50,000 bodily injury per accident and $10,000 property damage.
Inventory vehicles driven on public highways need liability coverage. Wisconsin permits 25/50/10 split limits or a $60,000 CSL.
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 required
- Underinsured motorist (UIM)
- Optional; 50/100 BI if purchased
- PIP / first-party medical
- Not required; MedPay selection applies
Personal and commercial auto liability policies must include at least $25,000/$50,000 UM bodily injury coverage. UIM is optional; when purchased, its minimum is $50,000/$100,000 bodily injury. Medical payments of at least $1,000 must be included unless rejected, subject to statutory exceptions.
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
Surety bond (MV2511) or irrevocable letter of credit (MV1046)
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 on two-year MV2186 application | $40 |
| Required two dealer plates | $150 |
| One-time plate issuance for new applicant | $12 |
| Each salesperson license, minimum one salesperson | $8 |
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 retail bond or letter of credit is separate from liability insurance for inventory driven on public roads. Retail, wholesale and leasing categories differ, and customer loaners need their own coverage discussion.
What does dealer insurance cost in Wisconsin?
Wisconsin requires vehicle liability and UM for road use, with separate UIM and medical-payments selections. A carrier may offer limits above the legal floor. For inventory coverage, total value, per-auto value, storage protection and deductibles also need to match the dealership.
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 |
|---|---|---|---|---|
| Wisconsin Startup dealer Without inventory coverage | $1,236 | $163 | 9 payments of $134 | $100,000 garage liability per accident. Inventory coverage not included. |
| Wisconsin Established dealer Liability + inventory | $1,974 | $644 | 9 payments of $167 | $100,000 garage liability per accident. $80,000 inventory limit; $10,000 maximum per auto. |
| Wisconsin Established dealer Without inventory coverage | $3,722 | $1,065 | 10 payments of $303 | $100,000 garage liability per accident. Inventory coverage not included. |
Wisconsin $1,236 example: coverage and business details
New business · 0 employees, excluding owners · 2 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$100,000 UM and UIM; $100,000 personal/advertising injury and damage to rented premises.
$1,000 liability deductible.
State requirements and official sources
Quoted September 10, 2026.
Wisconsin $1,974 example: coverage and business details
2 years in business · 4 dealer plates · $100,000 garage liability per accident.
$80,000 inventory limit; $10,000 maximum per auto.
$100,000 UM and UIM; $100,000 damage to rented premises; $100,000 personal/advertising injury.
$0 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.
Wisconsin $3,722 example: coverage and business details
2 years in business · 4 dealer plates · $100,000 garage liability per accident.
Inventory coverage not included.
$100,000 UM and UIM.
State requirements and official sources
Quoted July 31, 2026.
Wisconsin 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
- WisDOT retail motor vehicle dealer license
- MV2186 two-year dealer license application
- WisDOT Plain Dealing guidance index
- WisDOT dealer registration plates
- Wisconsin OCI: auto minimums, UM/UIM and medical payments
- Wisconsin OCI: consumer insurance guide
Policy wording controls actual coverage.