What happens if your dealership insurance lapses? Learn how an insurance lapse can affect your dealer license, vehicle inventory, liability protection, and overall business. This guide explains what can cause a lapse, what to do if coverage expires, the difference between garage liability and dealer open lot insurance, and how dealers can prevent costly gaps in coverage.

Dealer surety bond denials don’t cost you money, but they can slow down your licensing process and delay opening your dealership. The most common reasons for denial include poor credit, past financial issues, unresolved legal problems, incomplete applications, and being submitted to the wrong surety company. Each issue has a clear solution—from correcting errors to providing proper documentation. Working with a specialist like All American Bonds and Insurance helps dealers ge