Owning a dealership in Wisconsin means balancing sales, customer service, and compliance with state rules. One of the best ways to protect your business is to carry the right mix of insurance and surety bonds. Insured ASAP helps auto dealers across the state secure affordable coverage quickly, so you can focus on running a successful lot.

Whether you sell new or used cars, run a wholesale operation, or provide repairs, we’ll shop multiple top-rated carriers to find a plan that fits your budget and meets Wisconsin’s licensing requirements.

Wisconsin Dealer Insurance Requirements

Before you can get or renew a dealer license, the state requires two key forms of protection:

Garage Liability Insurance:

This policy protects against bodily injury or property damage that may occur as part of your dealership’s operations, from test drives to slip-and-fall incidents on your lot. Learn more.

Wisconsin Auto Dealer Bond:

A Wisconsin dealer bond guarantees that your business will operate honestly and in compliance with state regulations, giving customers an added layer of protection.

Bond amounts and liability limits depend on your license type and other factors. Because they can change, it’s best to talk with an experienced agent who knows Wisconsin law. Our team files proof of coverage promptly, so you don’t lose time waiting on paperwork.

Wisconsin Wholesale Dealer Insurance Requirements

If your business focuses on selling vehicles only to other licensed dealers, salvage buyers, or wholesalers, Wisconsin treats you as a wholesale dealer. Your licensing steps look a little different from a retail lot, and getting them right is key to staying compliant.

To operate legally, the state requires:

A $25,000 surety bond or irrevocable letter of credit that remains active for the full two-year license period. This bond protects customers and the state if a wholesaler fails to meet obligations.
Submission of bond paperwork on the correct WisDOT forms (MV2511 for bonds, MV1046 for letters of credit) when applying for or renewing your license.
A permanent business location with an indoor office and an adjacent outdoor display lot, plus posted signage with your business name and hours.
Wholesale-only transactions, as state law doesn’t allow you to sell directly to the public under a wholesale license.
Continuous coverage, since if your bond or letter of credit lapses, your license can be suspended or revoked until proof is reinstated.

Wisconsin doesn’t set specific liability coverage limits in statute for wholesalers, but most choose to carry Garage Liability, Garage Keepers, and Dealer Open Lot insurance to protect their operation.

Core Coverages for Wisconsin Auto Dealers

Every dealership faces risks beyond the basic state requirements. A well-rounded insurance package helps keep your business financially secure in almost any situation:

Garage Liability Insurance:

This is the backbone of a dealer policy, protecting you if someone is hurt or property is damaged during your business activities. Think of it as liability coverage designed specifically for auto sales and service.

Dealer Open Lot (Physical Damage):

Your inventory is the heart of your operation. Open Lot coverage protects dealership-owned vehicles against theft, vandalism, hail, and other weather losses. While not legally required, it’s strongly recommended that you keep cars on-site.

Wisconsin Garage Keepers Liability:

If you offer service or repairs, Garage Keepers covers customer vehicles while they’re in your care, custody, or control. This gives both you and your customers peace of mind.

Dealer Plate & Test Drive Coverage:

Vehicles in motion create unique exposures. Coverage for dealer plates and test drives ensures you’re protected whenever staff or shoppers take a car off the lot.

These protections can be bundled or purchased separately, depending on your needs. We’ll help you build a package that matches the size and scope of your dealership.

Wisconsin Auto Dealer Bonds

A dealer surety bond in Wisconsin is more than a licensing formality. It’s a promise of ethical business practices. If a customer experiences a financial loss due to fraud or failure to meet obligations, the bond offers recourse.

Insured ASAP makes the bonding process quick and stress-free:

We explain exactly which bond amount applies to your license type.
Multiple surety partners allow us to find an affordable rate, even if your credit isn’t perfect.
We issue bonds fast, giving you the documents you need to submit to the DMV without delay.

Having both your bond and insurance handled under one roof keeps licensing simple.

Additional Coverage Options

Beyond liability and bonds, dealerships often need extra protection for property, employees, or digital assets. Depending on your operations, you may want to include:

Cyber Liability Insurance:

Protects customer data and your business systems from hacking or ransomware attacks. Learn more.

Errors & Omissions (E&O):

Shield your business from claims related to paperwork mistakes, title errors, or misrepresentation.

Business Interruption Coverage:

Helps cover income and expenses if an unexpected event forces you to close temporarily.

Workers’ Compensation & Employment Practices Liability (EPLI):

Safeguards your team and your business in the event of injuries or workplace disputes.

Commercial Auto or Property Coverage:

Provides protection for owned service vehicles, buildings, and equipment.

Talking through these options with an agent ensures you’re not leaving gaps that could threaten your bottom line.

Wisconsin Auto Dealer Insurance FAQ

To make your next steps easier, here are answers to common questions we hear from Wisconsin dealers:

Can I get insurance before applying for my license?

Yes. We can issue a binder that you submit with your application, helping you start the licensing process without delay.

How long does it take to get proof of coverage?

Most of our clients receive same-day certificates, often within an hour of binding their policy or bond.

Is Dealer Open Lot coverage required by law?

No, but it’s one of the most important protections for your inventory. A single hailstorm or theft could cause major losses if you skip this coverage.

Why Choose Insured ASAP?

When you work with Insured ASAP, you’re partnering with a team that knows how to balance speed, affordability, and compliance. Dealers across the Midwest trust us because:

We provide quick quotes and same-day proof of insurance or bonds.
Our agents compare rates from multiple carriers to help you save.
We understand the full range of dealership operations and tailor coverage accordingly.
Our reputation for cheap, fast, and reliable solutions extends to SR22 filings, suspended plate assistance, and commercial dealership policies.

Everything we do is designed to make protecting your dealership simple and cost-effective.

Get a Free Instant Quote Today on Wisconsin Auto Dealer Insurance

Safeguard your lot, satisfy state requirements, and focus on selling cars instead of chasing paperwork. Call (800) 641-7488 or click below to request a personalized quote for Wisconsin auto dealer insurance and surety bonds. We’ll handle the hard work so you can get back to business.

Request Your Wisconsin Dealer Quote