Florida Garage Liability Insurance: What Every Motor Vehicle Dealer Must Know

If you operate a licensed motor vehicle dealership in Florida, Garage Liability Insurance is not optional. It is a mandatory requirement enforced by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) and plays a critical role in protecting your dealership from financial risk, lawsuits, and license suspension.

Understanding how Florida Garage Liability Insurance works—and keeping it active at all times—is essential to maintaining your dealer license and protecting your business.

What Is Florida Garage Liability Insurance?

Garage Liability Insurance is a specialized commercial auto insurance policy designed specifically for motor vehicle dealers. It provides coverage for bodily injury and property damage that may occur as a result of dealership operations.

This coverage applies to incidents involving dealership-owned vehicles, customer vehicles in your care, and accidents that occur on your business premises.

Unlike a dealer surety bond, which protects consumers and the state, Garage Liability Insurance protects the dealership itself.

Who Is Required to Carry Garage Liability Insurance in Florida?

Florida requires Garage Liability Insurance for most licensed motor vehicle dealers, including:

• Independent used motor vehicle dealers

• Wholesale motor vehicle dealers

• Independent mobility motor vehicle dealers

• Recreational vehicle dealers

If you are applying for a dealer license or renewing an existing one, proof of Garage Liability Insurance must be submitted to FLHSMV.

Minimum Coverage Requirements in Florida

Florida requires dealers to carry Garage Liability Insurance with minimum coverage limits, which typically include:

• Bodily injury liability

• Property damage liability

The exact coverage limits may vary depending on dealer type and licensing authority, but the policy must meet FLHSMV standards to be accepted.

Failing to meet minimum coverage requirements can result in application delays or license suspension.

What Does Garage Liability Insurance Cover?

A Florida Garage Liability Insurance policy may provide coverage for:

• Customer injuries on dealership property

• Accidents involving dealership vehicles

• Property damage caused by dealership operations

• Legal defense costs related to covered claims

Optional coverages may also be added depending on your dealership’s needs, such as:

• Dealer open lot coverage

• Physical damage coverage

• Hired and non-owned auto liability

  
  

Garage Liability Insurance vs. Dealer Surety Bond

Many dealers confuse these two requirements, but they serve very different purposes:

Dealer Surety Bond

• Protects consumers and the state

• Guarantees compliance with Florida dealer laws

• Required to obtain and maintain a license

Garage Liability Insurance

• Protects the dealership from lawsuits and accidents

• Covers bodily injury and property damage

• Required to keep your license active

Florida dealers are required to carry both at all times.

What Happens If Your Garage Liability Insurance Lapses?

Allowing your Garage Liability Insurance to lapse can have serious consequences, including:

• Immediate license suspension

• Inability to renew your dealer license

• Administrative penalties

• Increased insurance premiums

• Reinstatement delays

FLHSMV closely monitors insurance compliance, and even a short lapse can trigger enforcement action.

When Does Garage Liability Insurance Need to Be Renewed?

Garage Liability Insurance policies are typically issued on an annual basis. Dealers should begin the renewal process well before the expiration date to avoid coverage gaps.

Working with an experienced insurance agent ensures your renewal is processed on time and meets all Florida requirements.

Can You Switch Garage Liability Insurance Providers?

Yes. Florida dealers are allowed to switch insurance providers as long as:

• The new policy is active before canceling the old one

• FLHSMV receives proper proof of coverage

• There is no lapse in coverage

All American Bonds and Insurance manages this process carefully to ensure your license remains protected during the transition.

How Much Does Florida Garage Liability Insurance Cost?

The cost of Garage Liability Insurance varies based on factors such as:

• Dealer type and inventory size

• Location of the dealership

• Claims history

• Coverage limits and add-ons

All American Bonds and Insurance works with multiple insurance carriers to help Florida dealers secure competitive rates while maintaining full compliance.

Why Work With All American Bonds and Insurance?

Florida dealers trust All American Bonds and Insurance because we offer:

• Specialized Florida dealer insurance expertise

• Accurate filings with FLHSMV

• Fast quotes and renewals

• Access to competitive insurance markets

• Combined dealer bond and insurance management

We help dealers secure Garage Liability Insurance and Motor Vehicle Dealer Surety Bonds under one roof, reducing compliance risks and saving time.

Learn more or get started online at QuickerBonds.com.

Final Thoughts

Garage Liability Insurance is a critical requirement for every Florida motor vehicle dealer. Maintaining proper coverage protects your business, keeps your license active, and shields you from costly legal and financial risks.

Working with an experienced dealer insurance provider ensures your coverage is accurate, compliant, and renewed on time—so you can focus on running your dealership with confidence.

For Florida Garage Liability Insurance quotes, renewals, or compliance assistance, All American Bonds and Insurance is the trusted choice.

Visit QuickerBonds.com to get started today.