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Garage Liability Insurance in Louisiana

Louisiana used motor vehicle dealers must keep garage liability for vehicles offered for sale or used in demonstrating or on state roads, and a lapse can revoke the dealer license. Louisiana separately requires tow-truck plate applicants to document $300,000 auto liability, $50,000 garage liability, and $50,000 garagekeepers including $25,000 on-hook coverage, subject to a narrow property-based self-insurance alternative. 1,2

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.

Louisiana Requirements

RequirementDetails
Used motor vehicle dealerGarage liability policy for vehicles offered for sale or used in demonstrating or on state roads under the state financial-responsibility laws; no amount stated in §32:791(I) 1
Tow-truck license plate applicant$300,000 auto liability CSL; $50,000 garagekeepers incl. $25,000 on-hook; $50,000 garage liability; limited <5/no-storage affidavit route may omit the last two 2

What to Watch for in Louisiana

  • Keep Dealer Road Use in the Policy Schedule

    Louisiana’s used-dealer statute covers vehicles offered for sale or used in demonstrating or otherwise using state streets and roadways under financial-responsibility laws. List inventory demonstrations and road movements, and renew or replace the policy before a lapse because cancellation revokes the license unless new proof is furnished beforehand. 1

  • Separate Tow-Truck Plate Requirements

    For a Louisiana tow-truck plate, §32:1717 separately requires $300,000 combined-single-limit auto liability, $50,000 garagekeepers including $25,000 on-hook, and $50,000 garage liability. These figures apply to that tow-truck plate application, not automatically to every garage or dealer. 2

  • Check the Narrow Tow-Owner Alternative

    The tow-truck plate statute allows self-insurance under §32:1042 when property owned in Louisiana in the tow-truck owner’s name is worth at least $300,000 after encumbrances. Ask the Office of Motor Vehicles what proof it accepts before treating this as an alternative to certificates. 2

  • Ask About Stored and Towed Customer Cars

    Louisiana’s tow-truck plate statute explicitly calls for garagekeepers and on-hook amounts, while the used-dealer statute addresses liability for vehicles sold or demonstrated. Tell the broker whether you store disabled cars, winch them onto trucks, or hold customer vehicles overnight and ask what each quoted insuring agreement covers. 1,2

  • Check the Small-Carrier Affidavit Route

    R.S. 32:1717(D) gives a narrow route for a car carrier hauling fewer than five vehicles that does not store or hold vehicles: an affidavit states it does not carry garagekeepers or garage liability, and the carrier receives a car-carrier endorsement on its vehicle registration. The statute says this does not remove other Towing and Storage Act rules; ask whether your actual trips and storage practices fit. 2

Who Regulates Insurance in Louisiana

Louisiana Department of Insurance

The Louisiana Department of Insurance licenses producers and insurers, reviews insurance filings, and investigates complaints about insurance companies and agents. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 4.85% of gross premium plus a 0.175% SLIP+ transaction fee for policies effective on or after July 1, 2026 For Louisiana-home-state policies effective on or after July 1, 2026, the state charges 4.85% of gross premium plus a 0.175% SLIP+ transaction fee, which your broker may add to your bill. Louisiana's required policy disclosure says these policies are not covered by the Louisiana Insurance Guaranty Association; state placement and filing rules still apply. 6,7

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 Louisiana

  1. Do we need a Louisiana tow-truck plate, and if so, does the certificate show the separate auto, garagekeepers, on-hook, and garage-liability amounts?
  2. Does the policy name the used-dealer licensee and account for inventory demonstrations, delivery, and road use?
  3. What terms apply when we hook, tow, store, repair, or release a customer vehicle?

Garage Liability in Louisiana: FAQ

Does Louisiana require garage liability for a used motor vehicle dealer? 1

Yes. R.S. 32:791(I) requires all used motor vehicle dealers to keep a garage liability policy for vehicles offered for sale or used in demonstrating or on state roads under the state financial-responsibility laws. 1

What insurance does Louisiana require for a tow-truck plate? 2

R.S. 32:1717 lists $300,000 combined-single-limit automobile liability, $50,000 garagekeepers including at least $25,000 on-hook, and $50,000 garage liability. A limited self-insurance alternative is also stated. 2

Can a Louisiana used-dealer license continue after required garage liability is canceled? 1

No. The statute says the dealer license is revoked as of cancellation unless proof of a new policy is furnished before that date. 1

Can a Louisiana car carrier avoid garagekeepers and garage liability insurance? 2

Only under the narrow R.S. 32:1717(D) route for carriers transporting fewer than five vehicles and not storing or holding vehicles, with the required affidavit and registration endorsement. Other Towing and Storage Act rules still apply. 2

Garage Liability in Other States

Other Coverage in Louisiana

Sources

  1. Louisiana Revised Statutes §32:791, Application for license; renewal; fees; bond requirements; liability insurance. Louisiana State Legislature; §32:791(I); current statute page lists amendments through 2018. Accessed 2026-09-28.
  2. Louisiana Revised Statutes §32:1717, Qualifications of licensee; proof of financial responsibility in lieu of insurance. Louisiana State Legislature; §32:1717(A)–(D); §1717(D) small-carrier affidavit route; 2026 H.B. 728 amends §1715/§1736, not §1717. Accessed 2026-09-28.
  3. Louisiana Department of Insurance. Louisiana Department of Insurance; Homepage and consumer services. Accessed 2026-09-28.
  4. Insurance License Lookup. Louisiana Department of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Louisiana Department of Insurance; State complaint process and contact. Accessed 2026-09-28.
  6. Surplus Lines Premium Tax. Louisiana Department of Insurance; Current tax/transaction fee and July 1, 2026 transition. Accessed 2026-09-28.
  7. La. R.S. 22:433. Louisiana Legislature; Required policy disclosure; no LIGA protection. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.

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