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New Jersey garage liability for motor vehicle dealers

New Jersey requires an auto-liability certificate when a dealership is approved, with limits tied to bodily injury and property damage and the number of dealer plates covered. MVC must be listed as certificate holder, and a separate $10,000 surety bond must match the licensed business name and address. 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.

New Jersey Requirements

RequirementDetails
Dealer plate liabilityCertificate must show $100,000–$250,000 bodily-injury coverage and $25,000 property damage, and state the total plates covered 1,2
Certificate holderList New Jersey MVC Business Licensing Services Bureau, Dealer Unit 1
Dealer license bond$10,000 in the business name and address, with term matching the licensing year 1

What to Watch for in New Jersey

  • Policy Must Match the Dealer-Plate Count

    New Jersey requires the liability certificate to specify the total number of plates the policy covers. Reconcile that count after adding locations or plates so the certificate remains aligned with the MVC registration. 1

  • Dealer Plates Have a Use Restriction

    New Jersey says dealer plates cannot be used for hire or on commercially designed vehicles. Keep delivery, parts, service, towing, and other work autos under appropriate commercial auto coverage rather than relying on dealer-plate liability. 1

  • Use the Licensed Entity on the Bond

    MVC requires the $10,000 surety bond in the dealership’s business name and address, with an expiration date that coincides with the license year. Have the agent match the bond to the licensing record and synchronize renewal dates. 1

Who Regulates Insurance in New Jersey

New Jersey Department of Banking and Insurance

New Jersey DOBI licenses insurers and producers, reviews insurance products and rates, monitors insurer solvency and responds to insurance complaints. The Property and Casualty unit regulates commercial and personal property and casualty rates, rules and forms. 3,4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 5% of gross premium, less return premium New Jersey’s Department of Banking and Insurance states a 5% surplus-lines tax for policies effective on or after July 1, 2009; its FAQ also describes direct-procurement tax filing for premium allocated to New Jersey. A New Jersey surplus-lines producer generally must make a diligent effort to place the risk with authorized insurers, subject to the exportable-list and other statutory exceptions. New Jersey’s separate surplus-lines guaranty fund has narrow coverage; ordinary commercial surplus-lines claims are generally outside guaranty protection. 7,8,9

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 New Jersey

  1. How many New Jersey dealer plates are covered by the liability certificate, and does it match the MVC plate inventory?
  2. Does the policy provide the bodily-injury/property-damage amounts shown on the MVC requirements and list MVC as certificate holder?
  3. Are our service, parts-delivery, or towing vehicles excluded from dealer-plate use and insured under the right commercial-auto policy?

Garage Liability in New Jersey: FAQ

What insurance limits does New Jersey require for a dealer license? 1,2

The MVC lists bodily-injury limits of $100,000 to $250,000 and $25,000 property damage, and the certificate must state the total number of covered dealer plates. The MVC must be named as certificate holder. 1,2

How much is a New Jersey car dealer bond? 1

New Jersey requires a $10,000 surety bond in the dealership’s business name and address, with a term that coincides with the licensing year. 1

Garage Liability in Other States

Other Coverage in New Jersey

Sources

  1. New and Used Car Dealerships and Leasing Licenses. New Jersey Motor Vehicle Commission; Insurance/Bonding: plate-counted liability certificate, specified certificate holder, $10,000 bond; dealer-plate restrictions. Accessed 2026-09-29.
  2. Used Car Dealership License Requirements. New Jersey Motor Vehicle Commission; Insurance and bond requirements: per-person/per-incident bodily injury, property damage, combined limits. Accessed 2026-09-29.
  3. New Jersey Department of Banking and Insurance. New Jersey Department of Banking and Insurance; Official regulator homepage. Accessed 2026-09-28.
  4. Division of Insurance. New Jersey Department of Banking and Insurance; States that Division issues insurer/producer licenses, reviews products and rates, monitors solvency and responds to consumer concerns. Accessed 2026-09-28.
  5. Insurance Licensing and Education. New Jersey Department of Banking and Insurance; Official producer licensing page links to NJDOBI Licensee Search and SBS Licensee Search. Accessed 2026-09-28.
  6. Consumer Information. New Jersey Department of Banking and Insurance; Official consumer assistance/complaints destination; DOBI hotline 800-446-7467. Accessed 2026-09-28.
  7. Surplus Lines FAQs. New Jersey Department of Banking and Insurance; Current DOBI FAQ states 5% on policies effective on/after July 1, 2009 and identifies direct-procurement filing when NJ receives an out-of-state surplus-lines premium allocation. Accessed 2026-09-28.
  8. N.J.A.C. 11:1-33.3, Surplus Lines Procurement Requirements. New Jersey Department of Banking and Insurance; Rule requires diligent effort to place with authorized insurer except coverages on Exportable List. Accessed 2026-09-28.
  9. Surplus Lines Tax Q&A. New Jersey Department of Banking and Insurance; DOBI FAQ states Surplus Lines Guaranty Fund covers medical malpractice liability and property covering owner-occupied dwellings under four units; this is narrow and not ordinary business coverage. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. 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.
  12. 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.
  13. 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.
  14. 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.
  15. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  16. 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.
  17. 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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