In most states, dealer insurance is legally required to obtain and maintain an auto dealer license. This guide explains what types of insurance dealers commonly need, including garage liability insurance, dealer plate coverage, and open lot insurance. Learn why states require dealer insurance, what happens if your coverage expires, and how to protect your dealership from financial and legal risks.

Dealer insurance doesn’t have to break the bank. Many licensed auto dealers can lower costs by choosing the right coverage, operating lean, maintaining a clean claims history, and working with dealer insurance specialists. This guide explains the cheapest dealer insurance options, what affects pricing, and how to save money while staying compliant and protected.

Car dealerships need specialized insurance to protect their business, inventory, employees, and customers. Most dealers need garage liability insurance, dealer plate coverage, inventory protection, and other business policies depending on their operations. This guide explains the most common insurance requirements for car dealers, what may be required for licensing, and how to choose the right protection for your dealership.