What are the insurance requirements for Florida auto dealers?

Florida used car dealers must submit an original $25,000 surety bond and proof of garage liability insurance (minimum of $25k combined single-limit liability coverage including bodily injury and property damage and $10k personal injury protection) with their license renewal every year by April 30th.

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

Florida insurance agents have trusted the Bond Exchange for more than 40 years to obtain car dealer bonds for their customers. 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.

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How can an insurance agent obtain garage liability insurance for Florida 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+fl

How much does the Florida Used Motor Vehicle Dealer bond cost?

Florida car dealer bonds cost between $175 and $2,250 for the 1 year term depending on the personal credit of the dealer, license history, and years of experience.


Credit Range Bond Cost
750 or higher $175
700 – 749 $220
650 – 699 $250
625 – 649 $375
600 – 624 $500
575 – 599 $750
550 – 574 $1,250
475 – 549 $1,875
474 or lower $2,250


Why is the Florida Used Motor Vehicle Dealer bond required?

Dealers are required to purchase and file a $25,000 bond with the State of Florida Department of Highway Safety & Motor Vehicles (the “Obligee”) to activate or renew their license. The bond protects the Obligee, ensuring the public is compensated for damages resulting from a licensed auto dealer failing to comply with the provisions of licensing laws.

How does the Florida Used Motor Vehicle Dealer bond work?

Florida Used Motor Vehicle Dealers bonds must be issued by an insurance carrier admitted by the Florida Department of Insurance. The insurance company issuing any surety bond, such as the Florida 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 State of Florida Department of Highway Safety & Motor Vehicles 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 $25,000, 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?

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

  • Name and address of the garage liability insurance company;
  • Name, address, phone and fax number of the garage liability insurance agency
  • Name and address of the insured
  • Garage liability box must be checked
  • Policy number
  • Effective date of the policy
  • Expiration date of the policy
  • Name of the certificate holder which should read: Department of Highway Safety & Motor Vehicles, 2900 Apalachee Parkway, Room A312, MS# 65 Neil Kirkman Building, Tallahassee, Florida 32399.






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