Getting and maintaining your dealer license in the State of Florida requires the right insurance coverage — from garage liability insurance to dealers open lot protection. Many small auto dealers face high quotes or coverage gaps, but you don’t have to.

At Barbee Jackson Insurance, we specialize in dealership insurance. Our Garage Liability Team, led by President Krystal Jackson, is recognized as one of the nation’s largest writers of dealership and repair shop insurance. We shop multiple top insurance companies to deliver competitive policies that fully meet State of Florida requirements.

Small dealerships often secure full coverage starting as low as $1,300 per year.

Call our dedicated team today at (850) 389-2001 for your free dealership insurance quote.

Florida Dealership Insurance Requirements

The State of Florida requires specific insurance through the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) before issuing or renewing a motor vehicle dealer license.

Minimum requirements for most auto dealers and vehicle dealers include:

• Garage liability insurance — $25,000 combined single limit (CSL) for bodily injury and property damage, plus $10,000 personal injury protection (PIP). 
• Auto dealers surety bond (Dealer Bond) — $25,000 bond to protect consumers (typically $150–$250 per year based on credit).
• RV Dealer Bond - $10,000
• Certificates of Insurance — Required for licensing; we issue them the same day in most cases.

💡Krystal's Pro Tip -Exceeding the minimums with higher damage liability limits and dealers open lot coverage is highly recommended to protect your inventory and operations.

⭐⭐⭐⭐⭐“Top notch insurance agent. We use them for our dealership and there is no better agents!” — D Cee, Google Review

Key Coverage Options

A complete dealership insurance package protects Florida dealers from the unique risks of selling and servicing vehicles:

• Garage liability insurance — Covers premises liability, test drives, operations, customer injuries, and property damage or bodily injury claims.
• Dealers open lot (physical damage) — Protects your vehicle inventory from theft, vandalism, fire, hail, wind, flood, and other Florida weather events.
• Garagekeepers liability — Covers customer vehicles left in your care, custody, or control.
• Dealers errors & omissions (E&O) — Protection for title issues, loan/lease errors, or misrepresentation claims.
• Additional options — Workers’ compensation, commercial property, business interruption, and higher damage liability limits.

We tailor insurance coverages to your exact dealership type — new car, used car, powersports, RV, or motorcycle.

⭐⭐⭐⭐⭐“I cannot recommend Courtney at Barbee Jackson Insurance enough!!! She got me my Garage Liability and Certificate of Insurance in just a couple hours… that must be a record!!! Thank you Courtney!” — Francis Golub, Google Review

How Much Does Dealership Insurance Cost?

Insurance cost for dealership insurance depends on several factors:

• Size of inventory and number of dealer plates
• Location and operations (sales lot, service/repair, test drives)
• Claims history and credit for the surety bond
• Chosen coverage limits and additional coverage

Many small auto dealers and vehicle dealers secure basic garage liability + PIP and the required surety bond for as low as $1,300 per year. Adding dealers open lot and higher liability limits typically brings the total to $3,000–$8,000 annually.

Our independent agency approach lets us compare multiple insurance companies to find the best combination of price and protection while keeping you fully compliant.

“I was having a real hard time getting a good quote… Courtney Ferguson from Barbee Jackson made things very easy and did it in record time. I highly recommend Barbee Jackson Insurance.” ⭐⭐⭐⭐⭐— 7Fifteen Carlux, Google Review

Understanding Coinsurance

Many Florida Dealerships after a loss become aware of an insurance clause known as Coinsurance. This comes as a surprise to most dealerships because their agent didn't inform them on how coinsurance works. Why? The majority of the time the agent does not know exactly how the coinsurance clause works. Let's take the guess work out of coinsurance by explaining exactly how coinsurance affects you after a loss.

Acme Dealership is a mid-size dealership based in Florida with an average inventory level of $750,000. They purchased Dealer Open Lot coverage to protect their inventory against potential loss and it contained a 100% coinsurance clause (standard for most dealership insurance) and a $5,000 maximum lot deductible. What the agent didn't know and what the dealership failed to provide the agent was a sudden increase in inventory that jumped to $1 Million. At the same time, a major hurricane struck Florida and the dealership sustained a major loss of several vehicles costing the dealership $300,000 in total inventory loss. This is how the claim and the coinsurance would play out.

[DID versus SHOULD]
The Dealership purchased Dealer Open Lot Coverage [DID] – $750,000
The Actual Inventory at time of loss was [SHOULD] – $1,000,000

Coinsurance Clause
$750,000[DID] / $1,000,000[SHOULD] = .75
Total Inventory Loss – $300,000
Lot Deductible – $5,000
Coinsurance Calculation (.75 x 300,000) – $5,000 = $220,000 payout for loss of vehicle inventory

Acme Dealership sustained a $300,000 loss, but will only receive a loss settlement from the insurance company of $220,000 due to the coinsurance clause. Acme Dealership thought they only had a $5,000 maximum lot deductible, but in reality with the coinsurance penalty and the lot deductible they are out-of-pocket $80,000. That is why it is always a good practice to check the vehicle inventory levels monthly to make sure they are at the limit provided by the Dealer Open Lot. If Acme Dealership and the agent would have increased the Dealer Open Lot coverage to $1,000,000 the loss payout would have been $295,000 because there would be no coinsurance penalty saving the dealership $75,000.

💡 Krystal's Pro Tip - Florida Dealerships be AWARE - Many Florida Dealership insurance policies exclude wind, hail, and flood from the policy coverage. In Florida, our biggest potential loss factor is wind and flood due to the tropical storms and hurricanes. It is important to double check with you agent to make sure you are properly covered for this type of loss.

Why Choose Barbee Jackson Insurance?

• Recognized as one of the nation’s largest writers of garage liability insurance for dealerships and repair shops
• Fast, same-day certificates of insurance for FLHSMV licensing
• Personalized service from specialists who only focus on commercial lines — especially dealerships
• Florida-based agency with deep knowledge of State of Florida dealer regulations
• Dedicated team that treats every Florida dealers account with care

⭐⭐⭐⭐⭐“Vasana and Jennifer were very knowledgeable and professional. They helped me make the right choices for my dealership insurance.” — Motor Auto Connect, Google Review

“This agency had very prompt replies and was always responsive. Courtney F. was great with our garage liability needs.”⭐⭐⭐⭐⭐ — Anchor Auto Center LLC, Google Review

Get Compliant & Protected Today

Don’t risk delays with your dealer license or leave your inventory and business exposed. Let Barbee Jackson Insurance handle your dealership insurance with expert guidance, competitive rates, and unmatched service.

Call our Garage Liability Team today at (850) 389-2001 for a fast, no-obligation quote. We’re ready to help you get properly insured and back to selling cars.

See why hundreds of dealers trust us — 4.9/5 stars from 450+ Google reviews.

View All Our Google Reviews Here