Why Florida Dealers Should Review Bonds and Insurance Annually

Operating as a licensed motor vehicle dealer in Florida requires ongoing compliance—not just at startup, but every year your dealership remains active. Two of the most critical compliance components are your Florida Motor Vehicle Dealer Surety Bond and Garage Liability Insurance. Yet many dealers make the mistake of setting these up once and never reviewing them again.

An annual review of your bonds and insurance isn’t just good practice—it can protect your license, reduce costs, and support long-term business growth.

Florida Dealer Compliance Is Not “Set It and Forget It”

Florida dealer regulations are enforced by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). To remain compliant, dealers must maintain:

• An active $25,000 Motor Vehicle Dealer Surety Bond

• Valid Garage Liability Insurance

• Proper licensing and business documentation

If either your bond or insurance lapses, your dealer license may be suspended—even if the lapse was unintentional.

Annual reviews help catch issues before they turn into compliance violations.

Bond Premiums Can Change Over Time

Your Florida dealer bond premium is based largely on:

• Personal and business credit

• Financial stability

• Claims history

• Time in business

If your credit has improved or your dealership has become more financially stable, you may qualify for lower bond rates than when you first applied. Reviewing your bond annually ensures you’re not overpaying and gives you the opportunity to shop for better terms.

Conversely, unresolved claims or changes in financial status can impact renewal approval—something you want to identify early.

Insurance Coverage Needs Change as Your Dealership Grows

Garage Liability Insurance is designed to protect your dealership from lawsuits, accidents, and property damage. But the coverage you needed when you started may not be enough today.

Annual insurance reviews help ensure your policy still matches your operation, especially if you’ve:

• Increased inventory

• Added employees or drivers

• Expanded locations

• Begun offering test drives or vehicle transport

• Changed dealer license type

Underinsured dealers face serious financial exposure if a claim occurs.

Preventing Costly Lapses and License Suspensions

One of the most common reasons Florida dealers lose their license—temporarily or permanently—is a lapse in bond or insurance coverage.

Annual reviews allow your bond and insurance provider to:

• Track expiration dates

• Coordinate timely renewals

• File updated documents with FLHSMV

• Prevent accidental cancellations

Even a short lapse can trigger penalties or delays during license renewal.

Claims, Audits, and Risk Exposure

If your dealership has experienced:

• A customer complaint

• A bond claim

• An insurance claim

• A compliance audit

An annual review helps evaluate how those events affect your risk profile and future renewals.

Why Work With a Specialized Florida Dealer Agency?

Not all bond and insurance agencies understand Florida dealer regulations. Working with a specialist ensures:

• Correct bond forms filed with FLHSMV

• Proper garage liability limits

• Awareness of Florida-specific compliance rules

• Faster approvals and renewals

• Fewer licensing issues

At All American Bonds and Insurance, we review Florida dealer bonds and insurance annually to ensure dealers stay compliant, protected, and cost-efficient.

Reviewing your Florida Motor Vehicle Dealer Bond and Garage Liability Insurance each year is one of the smartest steps you can take as a dealer. It helps you avoid compliance issues, control costs, and protect your dealership’s future.

Whether you’re renewing, switching providers, or just want a second opinion, an annual review ensures nothing slips through the cracks.

If you’re ready to review your Florida dealer bond or insurance, All American Bonds and Insurance is here to help.

Get started today at QuickerBonds.com.