Georgia Dealership Insurance

Written By: Krystal Jackson President and head of garage insurance for Barbee Jackson Insurance. She and her team work with garage liability risks including dealerships and repair facilities across the United States.

Keep your Dealership Moving with Barbee Jackson Insurance

If your dealership is looking for an insurance agency that understands garage liability for dealerships then look no further than Barbee Jackson Insurance. As an independent insurance company we work with the industry's largest providers of garage liability. One phone call to our agency will get you up to 13 different quotes in 24 hours or less. Call today to get started (850) 389-2001

⭐⭐⭐⭐⭐Maxwell Evans “Jennifer at Barbee Jackson Insurance absolutely got it done for us. We were up against a tight timeline and needed coverage dialed in fast, and she delivered without missing a beat. Super responsive, knowledgeable, and made the whole process way easier than it should’ve been. If you need someone who actually follows through and handles business, Jennifer is the one. Highly recommend.”

Georgia Dealership Insurance Requirements

There are two governing bodies that regulate dealerships in Georgia. The first is for used car dealers regulated by the State Board of Used Vehicle Dealers under the Georgia Department of Revenue.

The second is new/franchised car dealers who are governed by the manufacturer’s franchise agreement and the Department of Revenue.

Both require at a minimum of:

• Garage Liability Insurance in the amount of $125,000 in Combined Single Limit (CSL)
• Georgia Motor Vehicle Surety Bond (2 year bond) - $50,000
  Effective July 1, 2026 the surety bond was increased from $35,000 to $50,000 with renewals opening July 1st.

Dealership Coverage Options

• Garage Liability (required) - The core coverage Georgia requires for dealer licensing, protecting your business from liability claims tied to vehicle sales, test drives, and daily lot operations. The limits are for both liability from vehicle accidents and slip and fall on the lot.
  Surety Bond (required) - Georgia requires a 2-year surety bond in the amount of $50,000
• Dealer Open Lot (DOL) - Garage liability is liability to others and does not cover damage to the dealership inventory. DOL provides comprehensive and collision to the dealership inventory. (optional)
• Garage Keepers - Some dealerships have a service department for client vehicles. Garage Keepers Insurance provides protection for vehicles in your care, custody and control.
• Furnished Auto - If you plan on using the dealership inventory for your personal use as well as business then the policy can be endorsed with a furnished auto. (optional)
• Workers Compensation - Provides medical care for employees injured on the job.

How much does Dealership Insurance cost in Georgia?

Dealership with the minimum garage liability ($125,000) with just one owner and no employees can expect to pay $1,300 per year (monthly payment options are available). The surety bond in the amount of $50,000 with good credit will be 1% of the bond amount or $500.

Larger operations that have sales people, office workers and mechanics will be rated at a higher amount due to increase in liability.

“I've been using Barbee Jackson for 2 years now for my dealership and have not had any issues thus far. For transparency, I have not had to submit any claims during this time so I can't speak of this process, however the customer service(Vasana Small has been my POC) has been excellent. Will continue to do business with them in the foreseeable future.” ⭐⭐⭐⭐⭐ Kendel

Dealer Open Lot - What you need to know

As previously stated DOL is protection for owned inventory. It provides protection in the event of an accident, theft or weather related claims. It is important to note that some policies will have exclusions for theft or weather related claims. If the lot is unprotected, meaning there are no posts and cables or no theft security on the lot, may exclude theft. Another common exclusion is weather related claims such as flood, windstorm and hail.

That is why it is important to work with an insurance agency that understands dealership insurance and can work with you to fully understand what is covered and what is not covered on your policy.

DOL is a great added value to protect your investment in inventory. Many of our dealerships invest hundreds of thousands of dollars in inventory and DOL protects this investment against financial loss. The most common deductible will be $1,000 per vehicle and a lot deductible of $5,000 meaning if the lot is hit with a large claim such as windstorm or hail the lot deductible will only be $5,000, not $1,000 per vehicle.

The lot also must be insured for the total value of the inventory. For example, if your lot has $100,000 in inventory then the lot must be insured for $100,000 or 100%. This is what you paid for each vehicle, not what the retail value of the vehicle.

If the lot is not 100% insured the insurance company will invoke the co-insurance clause. Insurance companies require all dealerships to insure the full value of the inventory. For example, your lot has $100,000 in inventory, but you only insured the lot for $50,000. If you have a claim the insurance company will use the co-insurance clause to only pay half of the claim since you only insured the inventory for 50% of the inventory.

Why Barbee Jackson Insurance

✅13 different quotes in 24 hours or less
✅Experts in Garage Liability Insurance
✅Certificates of Insurance issued the same day
✅Monthly payment options
✅Recognized as one of the nations top writers of dealership insurance

Get started today by calling (850) 389-2001 (Spanish speaking agents are available) or fill out the request form to have an agent call you.