Texas Auto Dealer Insurance Requirements

For your dealership in Texas to legally operate, you must follow all Texas auto dealer insurance requirements. These requirements can be challenging to navigate, but Insured ASAP is ready to assist you. Our insurance solutions are designed to meet both the demands of Texas laws and the needs of your dealership.

Understanding Texas Auto Dealers Insurance Requirements

As an auto dealer in Texas, you are required to meet the following legal insurance requirements.

Garage Liability Insurance

The state of Texas stipulates a minimum of $85,000 in Garage Liability Insurance. This fundamental coverage is crucial as it protects your dealership against claims of bodily injury or property damage that might arise from both business operations and specific garage activities, including vehicle test drives.

Alternately, Texas law allows dealerships to opt for a combined single limit policy that includes:

• $30,000 per person for bodily injury,
• $60,000 per accident for bodily injury,
• $25,000 for property damage per accident.

Texas Auto Dealer Bonds

The Texas Department of Motor Vehicles requires both new and used auto dealers to secure a motor vehicle dealer bond of at least $50,000. This bond acts as a pledge that your dealership will adhere to all applicable state rules and regulations governing motor vehicle dealers.

Insured ASAP will help you seamlessly navigate these requirements, ensuring that your dealership operates legally and with full transparency.

Tailored Insurance Solutions for Texas Auto Dealers from Insured ASAP

Garage Keepers Insurance

This type of policy protects customer vehicles while under your care for repair or storage. It ensures that any damages to customer vehicles on your property are covered, providing peace of mind to both you and your customers.

Dealer Open Lot Insurance

Dealer Open Lot insurance in Texas is critical for protecting your inventory of vehicles from theft, weather damage, vandalism, and other unforeseen events. This type of insurance is especially important for dealerships with large outdoor inventories.

Faulty Workmanship Claims

This coverage is crucial if your dealership includes service operations. It protects against claims arising from alleged errors in the work performed by your technicians, potentially saving you from significant financial damage.

Defective Product Claims

While selling vehicles and parts, there’s always a chance that these products could be defective. This type of coverage protects your dealership from claims and legal actions resulting from the sale of a defective product, covering legal fees and settlement costs.

Damage to Non-Owned, Hired, Temporary, and Newly-Acquired Autos

This extension is essential for dealerships that frequently handle customer vehicles or rent, lease, and acquire new inventory. It provides coverage for damage to vehicles that are not owned by your dealership but are in your possession or being used for business purposes.

Why Choose Insured ASAP for Your Texas Dealership Insurance?

• Customized Insurance Solutions: Insured ASAP provides customized insurance solutions that reflect the unique aspects of your Texas dealership. From small used car lots to large franchise dealerships, we tailor every policy to fit your specific needs and risks.
• Experienced and Knowledgeable Insurance Agents: Our team is composed of industry specialists who understand the Texas auto dealer landscape. Whether you need new or used car dealer insurance in Texas, We are committed to providing you with not just comprehensive insurance, but also a strategic partnership that enhances your business security and growth.
• Fast, Reliable Quotes: Leveraging advanced technology, diverse data sources, and connections with major insurance companies, Insured ASAP delivers instant quotes to 70% of business insurance shoppers.

Get Started with Insured ASAP

If you need Texas dealer insurance, do not put it off another day. Contact Insured ASAP for a free quote and let us be your trusted partner in navigating the complexities of Texas auto dealer insurance requirements.