New Dealer Startup Insurance Package
A bundled startup program for newly licensed dealers — garage liability, open lot, and the coverage you need to get licensed, bonded, and open.
Opening a dealership is a paperwork gauntlet, and insurance sits right in the middle of it. Before your state's motor-vehicle board will issue a dealer license, and before a floor-plan lender will fund your first units, you'll need proof of garage liability and often dealers open lot coverage in place. Our new-dealer startup package is built specifically for first-time and newly licensed dealers who need to satisfy those requirements quickly and correctly — without overbuying.
Startups are underwritten differently than established dealers: there's no loss history, projected volumes instead of actuals, and a licensing clock ticking. We know exactly what the board and the lender need to see, and we structure a right-sized program that gets you compliant on day one and scales as your lot grows.
What it covers
- Garage liability to satisfy licensing and lender requirements
- Dealers open lot for your initial inventory
- Guidance on the dealer surety bond you'll also need
- Workers' comp once you hire your first employee
- Property / BPP for your office and equipment
- A clear path to add cyber, E&O, and umbrella as you grow
What you need in place to get licensed
Every state's dealer-licensing process has an insurance and bonding checklist. Almost universally, you'll need garage liability at a stated minimum limit (commonly $500,000 to $1,000,000) and a dealer surety bond. If you're financing inventory, your floor-plan lender will separately require dealers open lot coverage naming them as loss payee. Miss any one of these and your license application stalls.
We assemble the garage liability and open lot pieces, coordinate with your bond, and provide the certificates the board and lender need — so the insurance side of your application is never what holds you up.
- Garage liability at your state's minimum limit
- Dealers open lot for financed inventory
- Certificates for the board and floor-plan lender
- Coordination with your dealer surety bond
Dealer bond vs. insurance — they're not the same
New dealers frequently confuse the dealer surety bond with insurance, but they protect different parties. A dealer bond is a guarantee to the state and to consumers that you'll operate lawfully — if you don't, a claim is paid to the harmed party and you must reimburse the bond company. Insurance protects the dealership itself against covered losses. You need both: the bond to get licensed, and the insurance program to actually protect your business. We make sure the two are coordinated and that you understand the distinction before you sign.
Building a program that grows with you
A startup shouldn't buy a mega-dealer's program on day one — but it should be set up so coverage scales cleanly as the lot grows. We start you with the essentials to open, then layer in workers' comp when you hire, cyber as you take credit apps, E&O as your F&I volume builds, and umbrella as your assets and traffic grow. The goal is a program that's right-sized today and has a clear, pre-planned path to full protection as you scale.
Who needs this coverage
- First-time dealers applying for a license
- Newly licensed independent and used car lots
- Buy-here-pay-here startups
- New powersports, RV, or marine dealers
- Dealers who need proof of coverage fast to open
What drives your cost
New Dealer Package questions, answered
Nearly every state requires garage liability at a stated minimum (often $500,000–$1,000,000) plus a dealer surety bond before issuing a license. If you finance inventory, your floor-plan lender will also require dealers open lot coverage. We assemble these and provide the certificates your board and lender need.
A dealer surety bond guarantees to the state and consumers that you'll operate lawfully — you must reimburse the bond company for any paid claim. Insurance protects your dealership against covered losses. They protect different parties, and a new dealer needs both.
Yes — fast, correct proof of coverage is exactly what the new-dealer package is built for. Call 844-967-5247 and we'll get the garage liability and open lot pieces in place and issue the certificates your licensing board and lender require.
Absolutely. Startups are underwritten on projected volumes rather than loss history, and prior industry experience helps. We specialize in getting first-time dealers a right-sized program that satisfies licensing and lending requirements without overpaying.
Related coverages
Placing new dealer package through a dealer specialist
New Dealer Package rarely sits in isolation — it works alongside the rest of your dealer program, and getting the coordination right is where a specialist matters. As a Contractors Choice Agency program focused entirely on auto dealers, we structure your new dealer package so it lines up cleanly with your garage liability, your inventory coverage, and any umbrella above it — no overlapping premium you pay twice for, and no gap where a loss could fall between policies.
We shop your risk to A-rated carriers that genuinely want dealer business, present your operation in the best possible light to earn better pricing, and stay in your corner at renewal and at claim time. Whether you run a single independent lot or a multi-rooftop franchise group, in any of the 50 states, we'll right-size this coverage to how you actually operate rather than handing you a generic quote.
Tell us about your lot
Dealer type, inventory, and the coverages you need — by form or a quick call.
We build the program
We structure new dealer package and the rest of your account with the right carriers.
Bind and get certs
Review, bind, and receive the certificates your board, lender, and manufacturer require.
Ready to quote new dealer package?
Tell us about your dealership and we'll build a program that fits how you actually operate — often with same-day turnaround.