Get Started

Arkansas garage liability for motor vehicle dealers

Arkansas requires a licensed used motor vehicle dealer to file a $25,000 corporate surety bond and liability insurance covering every vehicle offered for sale. The dealer statute ties the insurance amount to Arkansas motor vehicle financial-responsibility law, so have your agent confirm the filed limit and which inventory units are covered. 2

What Is Garage Liability?

Garage liability can address injury and property-damage claims from auto repair and related garage operations. If you run a repair or service shop, check separately whether customer cars in your care need garagekeepers coverage for vehicle damage. Read the national Garage liability guide.

Arkansas Requirements

RequirementDetails
Used-dealer inventory liabilityProof of liability insurance on all vehicles offered for sale at no less than the state motor-vehicle minimum 2
Dealer bond$25,000 corporate surety bond; multiple locations may use a $100,000 aggregate bond 2

What to Watch for in Arkansas

  • Cover Every Unit Offered for Sale

    Arkansas requires proof of liability insurance on all vehicles offered for sale as part of the used-dealer license application. Ask how the garage policy treats owned stock, consigned vehicles, vehicles away from the lot, and test drives. 2

  • The Dealer Bond Does Not Insure the Cars

    Arkansas’s $25,000 bond responds to specified buyer losses after a court judgment; it is a separate licensing security, not collision or comprehensive coverage for inventory. Ask for the liability policy and the bond as separate documents. 2

  • Report Changes Through the State Police Dealer Process

    Arkansas State Police provides separate bond or insurance update forms for primary and satellite dealerships. If you change the dealership name, location, insurer, or inventory arrangement, confirm the license record and insurance evidence are updated together. 1

Who Regulates Insurance in Arkansas

Arkansas Insurance Department

The Arkansas Insurance Department licenses resident and nonresident producers and business entities, accepts insurance complaints, and provides links to company and producer license searches. It operates as a division of the Arkansas Department of Commerce. 3,4,8,5

Surplus-lines tax and stamping office

Reported tax rate: 4% when Arkansas is the insured's home state Arkansas's broker filing instructions set a 4% surplus-lines tax. Federal law assigns nonadmitted-insurance regulation and tax to the insured’s home state; for a multistate policy, ask your broker to show the home state and the premium allocation used for the Arkansas filing. Arkansas law requires the contract to disclose that the state's property-and-casualty guaranty protection does not apply. 6,7,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Arkansas

  1. Does the policy provide liability coverage on every vehicle we offer for sale, including units at any satellite location?
  2. Is the $25,000 buyer-protection bond separate from our garage liability and inventory physical-damage coverage?
  3. Who will file the updated bond or insurance form with Arkansas State Police if our dealership details change?

Garage Liability in Arkansas: FAQ

Does Arkansas require insurance on a used dealer’s inventory? 2

Yes. The license application requires proof of liability insurance on all vehicles offered for sale, at least the amount required by the Arkansas Motor Vehicle Safety Responsibility Act. 2

What bond does Arkansas require for a used vehicle dealer? 2

At least $25,000 in corporate surety, with a $100,000 aggregate bond option for multiple licensed locations. The bond protects against specified buyer losses; it is not inventory insurance. 2

Garage Liability in Other States

Other Coverage in Arkansas

Sources

  1. Used Motor Vehicle Dealer License. Arkansas State Police; Dealer license eligibility, license applications, bond/insurance update forms. Accessed 2026-09-29.
  2. Used Motor Vehicle Buyers Protection Act. Arkansas State Police / Arkansas Code; § 23-112-607: minimum $25,000 bond and liability proof for all vehicles offered for sale. Accessed 2026-09-29.
  3. Arkansas Insurance Department. Arkansas Insurance Department; Official agency homepage. Accessed 2026-09-28.
  4. Licensing. Arkansas Insurance Department; Licensing Division guidance and state-based systems lookup for Arkansas agent and agency licensees. Accessed 2026-09-28.
  5. File A Complaint. Arkansas Insurance Department; Online complaint filing for insurance providers, including agents and companies. Accessed 2026-09-28.
  6. Surplus Lines Brokers Filing. Arkansas Insurance Department; Current broker filing instructions state that 4% broker tax must be remitted. Accessed 2026-09-28.
  7. 23 CAR § 201-104: Endorsement of contract. Arkansas Code of Rules; Required surplus-lines contract disclosure: no Arkansas P&C Guaranty Act protection and 4% tax collected from insured. Accessed 2026-09-28.
  8. 15 U.S.C. § 8202: Regulation of nonadmitted insurance by insured's home State. U.S. House of Representatives, Office of the Law Revision Counsel; § 8202(a): nonadmitted placement is subject solely to insured's home-State requirements, except as otherwise provided; § 8201 addresses exclusive home-State tax authority. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

Get Help With Insurance Buying and Renewals.

Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.

Talk to Spot