The state does not require it. It requires a bond, which is a different thing. A licensed California vehicle dealer must file a $50,000 surety bond under Vehicle Code 11710 before the DMV will issue or renew the license. A dealer handling only motorcycles or all-terrain vehicles files $10,000 instead. That bond protects buyers against fraud and misrepresentation, and the dealer repays the surety for what it pays out. It does nothing for a customer injured on your lot. Leases, floor plan lenders, and franchise agreements are what usually require the liability coverage. Current as of August 2026.
Related FAQs
Typically not. Tools and equipment are usually addressed under other coverages we can review with you.
It generally refers to vehicles a customer has left with you. Garagekeepers is designed to respond when those vehicles are damaged while in your care.
Many auto businesses do, because they cover different exposures. We can help you decide based on how you operate.
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