What are the insurance requirements for Georgia auto dealers?

Georgia used car dealers must submit an original $35,000 surety bond and proof of garage liability insurance (minimum of 50k/100k/25k or single limit of $125,000) with their license renewal every even year (2018, 2020, 2022,..) on March 31st. The surety bond must be effective for 2 years expiring at the next license renewal (3/31/2020).

Georgia Auto Dealer Insurance

How can an insurance agent obtain the surety bond for Georgia car dealer customers?

Georgia insurance agents have trusted the Bond Exchange for years to obtain car dealer bonds for customers in Georgia. The Bond Exchange works with over 30 carriers to ensure your customer receives the best price in the market, all with a single point of entry with most quotes provided instantly online. We also offer easy no-interest financing with up to 10 monthly payments, helping you deliver payment terms for all situations. Enroll with us today by clicking here.

How can an insurance agent obtain garage liability insurance for Georgia car dealer customers?

Bonds are our only business at The Bond Exchange. Our agents often utilize brokers for this specialty line of business. A list of brokers in this space can be found at https://www.mynewmarkets.com/search/garage+liability+ga

How much does the Georgia Motor Vehicle Dealer bond cost?

Georgia dealer bonds cost between $275 and $4,550 for the 2 year term depending on the personal credit of the dealer, license history, and years of experience.

Credit Score Premium Rate Bond Cost
800 or higher .75% $275
750-799 1.5% $525
700-749 1.75% $613
650-699 2.0% $700
625-649 3.0% $1,050
600-624 4.0% $1400
575-599 6.0% $2100
550-574 8.0% $2,800
525-549 10.0% $3,500
525 or lower 13.0% $4,550

Why is the Georgia Used Motor Vehicle Dealers bond required?

Dealers are required to purchase and file a $35,000 bond with the Georgia Board of Used Motor Vehicle Dealers (the “Obligee”) to activate or renew their license. The bond protects the Obligee, ensuring the public is compensated for damages resulting from the failure of a licensed auto dealer complying with the provisions of licensing laws.

How does the Georgia Used Motor Vehicle Dealers bond work?

Georgia Used Motor Vehicle Dealers bonds must be issued by an insurance carrier admitted by the Georgia Department of Insurance. The insurance company issuing any surety bond, such as the Georgia Used Motor Vehicle Dealers bond, will also be referred to as the “surety company” or the “bond company”. The car dealer is referred to as the Principal, the surety bond company as the Obligor and the Georgia Board of Used Motor Vehicle Dealers as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount of $35,000, as stated on the bond form (“penal sum”). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, licensed auto dealers are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face license revocation.

Common examples of license violations triggering a bond payout include a car dealer bouncing a check at auction or failing to deliver proper title to a purchaser.

What information must be shown on the Garage Liability Certificate?

Georgia car dealers must provide proof of garage liability insurance on an Acord form, with the following information:

  • Policy Number (Note, binders are not acceptable)
  • Limit Amounts – minimum of 50k/100k/25k, or a single limit of $125,000
  • Garage Liability Coverage must be shown. Automobile Liability Only will not be accepted.
  • “Location” on certificate must show exact name and address as shown on the license or application.
  • “Certificate Holder” must be “State Board of Used Motor Vehicle Dealers, 237 Coliseum Drive, Macon, GA. 31217”.


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