Michigan Garage Liability for Motor Vehicle Dealers

Michigan new and used dealers seeking dealer plates must submit Michigan no-fault fleet insurance, and the state application requires either a registered repair facility or an agreement with one. Class A, B, and D dealers also need a $25,000 bond under current Secretary of State guidance.

What Is Garage Liability Insurance?

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.

Michigan Garage Liability Insurance Requirements

Requirement	Details
Dealer fleet insurance	Michigan no-fault fleet policy required for dealer-license classes that may receive dealer plates ¹
Vehicle dealer bond	$25,000 for Class A, B, and D dealers after first renewal following Jan. 23, 2023, or upon bond cancellation ¹
Repair-facility evidence	Class A and B applicants must have their own registered repair facility or a repair-facility agreement ²

What Should You Watch for With Garage Liability Insurance in Michigan?

Plate Eligibility Depends on License Class
Michigan requires at least two dealer plates for Class A and B dealers, while Class W wholesalers may request plates without a minimum. Make sure the fleet policy and requested plate class match the actual license type and authorized dealer-plate uses. ¹
Keep Fleet Proof With Dealer Vehicles
Michigan says dealers should keep a copy of the fleet-insurance certificate in dealer-owned vehicles, and a customer driving on a dealer plate after purchase needs a certificate of Michigan no-fault coverage for that vehicle. Ask who supplies and tracks the vehicle-level proof. ¹
Dealer Licensing Can Depend on a Repair Partner
New and used dealer applications require either a dealer-operated registered repair facility or an agreement with a registered facility. If you outsource repairs, confirm the agreement stays current and separately review who insures customer vehicles while they are in the shop’s custody. ^2,¹

Which Garage Liability Providers Have Michigan License Records?

No provider in our research has both a state license record and a listing for 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.

Who Regulates Insurance in Michigan?

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. ^3,^4,⁵

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: 877-999-6442

Surplus-Lines Tax and Stamping Office in Michigan

Reported tax rate. 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state ^6,^7,⁸

Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed.

Questions to Ask Before You Buy Garage Liability in Michigan

Does our Michigan license class require a no-fault fleet policy and at least two dealer plates?
Do we have a current registered repair-facility agreement for the location on the dealer application?
Who keeps fleet-insurance certificates in dealer-owned vehicles and provides no-fault proof for sold vehicles using a dealer plate?

Garage Liability Insurance in Michigan: Frequently Asked Questions

Do Michigan dealers need fleet insurance?

Yes. Michigan requires no-fault fleet insurance for dealer-license classes that allow dealer plates. The required class and plate use should match the policy documentation. ¹

Which Michigan dealers need a $25,000 surety bond?

The Secretary of State lists Class A, B, and D dealers as needing a $25,000 vehicle-dealer bond after the first renewal following January 23, 2023, or if the current bond is canceled. ¹

Sources for Garage Liability Insurance in Michigan

1
Vehicle dealers. Michigan Department of State; Licensing requirements: no-fault fleet insurance, $25,000 bonds for Classes A/B/D, dealer-plate use. Accessed 2026-09-29.
2
Chapter 1: Licensing of Vehicle Dealers. Michigan Department of State; April 2025 application requirements chart; Class A/B insurance, repair-facility proof, plates and bond. Accessed 2026-09-29.
3
Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
4
Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
5
File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
6
Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
7
Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
8
Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 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.