What sorts of insurance do Oklahoma used car dealers need?

A lot of Oklahoma dealerships need a mix of garage liability insurance, dealer's open lot coverage, workers' compensation, and a surety bond. These protect your lot, inventory, employees, and customers.

What is the purpose of a dealer surety bond in Oklahoma?

According to the Oklahoma Used Motor Vehicle and Parts Commission, most used car sellers need a $25,000 surety bond. This bond keeps the state and consumers safe against fraud and other dishonest business practices. Without it, you cannot receive or renew your dealer's license.

What is insurance for garage liability?

If someone gets hurt or has an accident at your business, garage liability insurance will protect you from lawsuits. This includes consumers slipping and falling on your lot, damage to your property, or an accident that happens while someone is test driving a car.

Do I need coverage for an open lot at a dealer in Oklahoma?

Yes. Dealer's open lot coverage includes the autos you own and want to sell. Oklahoma is famous for tornadoes, hailstorms, and damage from strong winds. This insurance protects your inventory from storms, theft, fire, or vandalism.

What are the rules regarding bonds for dealers in Texas?

The Texas Department of Motor Vehicles requires all used car sellers in Texas to carry a $50,000 auto dealer surety bond. This bond protects customers from fraud and makes sure the corporation respects state regulations.

Do Texas dealers have to have workers' comp?

Most businesses in Texas do not have to get workers' comp, but a lot of dealerships do regardless. It safeguards your dealership from being sued and keeps your employees safe if they are wounded at work.

Is it okay to combine my dealer bond and insurance?

Yes. In Oklahoma and Texas, a lot of brokers might combine your bond, liability, and inventory coverage into one policy. This makes it easier to renew and often saves money.

Request a Quote Certificate

Home · Blog

Types of Auto Dealer Insurance Coverage

Published 2023-03-03 · Updated 2026-08-16 · OKC Insurance Brokers

If you own a used car shop in Oklahoma or Texas, you need the right balance of insurance and bonds to stay legal and safe. Here are some of the most common questions that dealership owners in both states ask, along with clear answers that will help you go forward with confidence.

Insurance for Oklahoma Car Dealerships

Insurance for Auto Dealers in Texas

Last Thoughts

There is no one type of auto dealer insurance and bonding that works for everyone. Having the right insurance keeps you lawful and protects your business from costly risks, whether you work in Oklahoma or Texas.