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
No. Garagekeepers covers customers’ vehicles, and garage liability covers injury and damage to others. Employee-owned tools are insured as a separate scheduled item on the property or inland marine ...
A customer’s vehicle is in your care, custody or control from the moment it is handed to you until it is returned. That means on the lift, in the ...
Yes, if customers leave vehicles with you. Garage liability answers for injury and damage arising from your operations, including the auto exposure. Garagekeepers answers for damage to the customers’ ...
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