Get Started

Minnesota garage liability for motor vehicle dealers

Minnesota requires liability insurance on every vehicle held for sale or resale, with residual limits of $30,000 per person, $60,000 per accident, and $10,000 property damage, plus PIP and uninsured/underinsured motorist protection. Most dealers also need a $50,000 bond, and the registrar may cancel a license if required insurance or bond is not maintained. 3,2,1

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.

Minnesota Requirements

RequirementDetails
Dealer stock liability coverageCover vehicles held for sale or resale; state minimum residual liability $30,000/$60,000/$10,000 3,2
No-fault and UM/UIM benefitsDealer vehicle policy must include required basic economic-loss benefits and underinsured/uninsured motorist coverage 2
Dealer surety bond$50,000 for most dealers; limited trailer and motorized-bicycle categories have a lower amount 1,3

What to Watch for in Minnesota

  • Liability Is Not the Whole Minnesota Policy

    Minnesota’s required plan of reparation security includes basic economic-loss benefits and residual liability, with separate uninsured and underinsured motorist protection. Verify the dealer fleet policy includes required no-fault benefits as well as liability for customer test drives and road use. 2,3

  • The State Requirement Reaches Sale Inventory

    Minnesota requires liability coverage on all vehicles held for sale or resale, not only vehicles currently bearing a dealer plate. Ask how the policy treats newly acquired units, off-site inventory, and demonstrators between acquisitions and sales. 3

  • Missing Insurance Can Put the Dealer License at Risk

    Minnesota authorizes license cancellation after notice if the dealer fails to maintain required chapter 65B insurance or the dealer bond. Ask the agent how the state is notified at cancellation and coordinate replacement coverage before a lapse. 1

Who Regulates Insurance in Minnesota

Minnesota Department of Commerce

The Minnesota Department of Commerce regulates insurance companies and producers, reviews rates and forms, and investigates complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% of taxable gross premiums less return premiums, plus a 0.04% stamping fee on taxable premium when Minnesota is the insured's home state When Minnesota is the insured's home state, 3% tax applies to taxable gross premiums less return premiums; the separate 0.04% stamping fee on taxable premium is paid by you to the broker. Minnesota requires a policy warning that insolvency loss payment by a nonadmitted insurer is not guaranteed. A diligent search generally applies unless a Minnesota-licensed producer unaffiliated with the surplus-lines broker refers the risk, which the statute deems unavailable from a licensed insurer; an exempt commercial purchaser also has a separate written-request route after the required admitted-market disclosure. 7,10,8,9,11

Minnesota Surplus Lines Association

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 Minnesota

  1. Does the fleet policy include Minnesota PIP and UM/UIM as well as residual liability for all units held for resale?
  2. How does the policy add newly acquired inventory and cover off-site demonstrators before they are sold?
  3. Who will coordinate replacement coverage and the $50,000 bond if either is changed or canceled?

Garage Liability in Minnesota: FAQ

What auto insurance does a Minnesota dealer need on sale vehicles? 3,2

Minnesota requires liability coverage on vehicles held for sale or resale, including at least $30,000 per person, $60,000 per accident, and $10,000 property damage in residual liability, along with no-fault and UM/UIM coverage required by law. 3,2

How much is a Minnesota motor-dealer bond? 1

Minnesota requires a $50,000 bond for most dealers. Certain listed trailer and motorized-bicycle categories have a $5,000 amount. 1

Garage Liability in Other States

Other Coverage in Minnesota

Sources

  1. Minnesota Statutes § 168.27: Motor Vehicle Dealer Licenses. Minnesota Revisor of Statutes; Subd. 24 bond; subd. 25 bond preemption; subd. 28 dealer plates; licensing cancellation for missing insurance/bond. Accessed 2026-09-29.
  2. Minnesota Statutes § 65B.49: Required coverage. Minnesota Revisor of Statutes; Subd. 3 residual liability minimums; PIP and residual coverage. Accessed 2026-09-29.
  3. Motor Vehicle Dealer License. Minnesota Department of Public Safety / eLicense; Liability insurance on vehicles held for sale/resale; required coverage and $50,000 bond overview. Accessed 2026-09-29.
  4. Insurance. Insurance; Insurance regulator and consumer resources. Accessed 2026-09-28.
  5. Insurance License Lookup. Insurance; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Insurance; Insurance complaint topic; filing portal, complaints line, email contact. Accessed 2026-09-28.
  7. Minn. Stat. §297I.05. Minnesota Revisor of Statutes; 3% on gross premiums less return premiums when Minnesota is insured's home state; 100% taxable in Minnesota. Accessed 2026-09-28.
  8. Instructions for 2026 Semiannual Stamping Fee Report. Minnesota Surplus Lines Association; 2026 report p.1, lines 82–94: stamping fee rate .0004 (0.04%) of policy premium for transactions effective on or after October 1, 2016; current report linked from the association's 2026 site. Accessed 2026-09-28.
  9. Minn. Stat. §60A.207. Minnesota Revisor of Statutes; 2025 text, lines 250–255: policy notice states insurer is not otherwise licensed in Minnesota and insolvency loss payment is not guaranteed. Accessed 2026-09-28.
  10. Minn. Stat. §297I.01. Minnesota Revisor of Statutes; Definition of gross premiums for nonadmitted insurance includes fees, assessments and other consideration, with stamping fee and operating assessment exclusions. Accessed 2026-09-28.
  11. Minnesota Statutes 2025, §60A.201. Minnesota Revisor of Statutes; 2025 Minn. Stat. §60A.201 subd.1 (admitted-market restriction); subd.5 (ECP disclosure and subsequent written request); subd.6 (risk referred by unaffiliated Minnesota-licensed producer deemed unavailable). Amendments listed through 2025. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. 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.
  14. 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.
  15. 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.
  16. 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.
  17. 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.
  18. 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