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North Dakota garage liability for motor vehicle dealers

North Dakota requires a continuous dealer liability policy that includes general, business-auto, and sales, repair, or service-operations liability as appropriate to the business. If coverage is canceled, suspended, or revoked, the dealer must return its license and dealer plates before that change takes effect. 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.

North Dakota Requirements

RequirementDetails
Dealer liability policyContinuous liability policy with general, business auto, and sales/repair/service operations as appropriate 1

What to Watch for in North Dakota

  • Match Policy Parts To Your Operations

    North Dakota law names general, business-auto, and sales, repair, or service liability as components to include when appropriate to the dealership. Ask the broker to map each part of your operation to the policy so repair or service work is not omitted from the license evidence. 1

  • Return Plates Before Cancellation Takes Effect

    If required insurance ends through cancellation, suspension, or revocation, North Dakota requires the dealer to return its license and dealer plates on or before the effective date. Arrange replacement coverage and proof with the department before a policy change to avoid automatic license revocation. 1

  • Carry Proof During Test Drives

    NDDOT’s dealer handbook says proof of insurance must be in the vehicle during a test drive. Give staff a current copy for each test-drive vehicle and confirm the customer-driving exposure is included in the policy. 2

  • Sales History Affects Renewal

    The statute bars renewal if the dealer had fewer than eight retail motor-vehicle sales in the prior year, and permits limits on plate counts based on sales history. Confirm plate needs and renewal status before setting policy schedules for the next term. 1

Who Regulates Insurance in North Dakota

North Dakota Insurance Department

The North Dakota Insurance Department regulates insurers and producers, provides licensing and company searches, and investigates insurance complaints to assess compliance with state law and policy terms. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 1.75% of gross premium, assessments and policy fees, less return premium, when North Dakota is home state When North Dakota is the insured’s home state, the 1.75% tax applies to the entire gross premium, assessments, membership and subscriber fees, and policy or service fees on multistate policies, less return premium. North Dakota permits independent procurement only under separate statutory conditions; the policyholder should confirm whether a licensed broker placement or independent procurement applies. Nonadmitted insurers generally do not participate in state guaranty funds. 6,7,8

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 North Dakota

  1. Does our continuous policy include general, business-auto, and the sales, repair, and service operations we actually conduct?
  2. If we cancel or replace the policy, when will the insurer notify the department and what proof is required before dealer plates can be reissued?
  3. Do our test-drive vehicles carry proof of insurance, and does the policy cover prospective purchasers driving them?

Garage Liability in North Dakota: FAQ

What insurance does a North Dakota motor vehicle dealer need? 1

North Dakota requires a continuous business liability policy that includes general, business-auto, and sales, repair, or service liability as appropriate to the dealer’s operation. 1

What happens if a North Dakota dealer’s liability insurance is canceled? 1

The dealer must return the license and dealer plates on or before the cancellation takes effect. The department will reinstate them only after receiving proof of coverage. 1

Garage Liability in Other States

Other Coverage in North Dakota

Sources

  1. North Dakota Century Code, Chapter 39-22: Motor Vehicle Dealers. North Dakota Legislative Branch; §§ 39-22-18 and 39-22-19, license renewal sales threshold and garage liability insurance requirement. Accessed 2026-09-29.
  2. Motor Vehicle Dealer Handbook. North Dakota Department of Transportation; Insurance requirements and dealer plate use, test drive proof instructions. Accessed 2026-09-29.
  3. North Dakota Insurance Department. North Dakota Insurance Department; Official department homepage; identifies regulation of insurance and consumer/business assistance. Accessed 2026-09-28.
  4. Print License / Search for an Agent. North Dakota Insurance Department; Official licensing page directs the public to current SBS public lookup for agent status, license number, lines and appointments; linked public lookup is up to date. Accessed 2026-09-28.
  5. Complaints. North Dakota Insurance Department; Official complaint process; Department reviews compliance with insurance laws and policy coverage; directs online filings to state-specific SBS complaint form. Accessed 2026-09-28.
  6. Surplus Lines. North Dakota Insurance Department; Current official page: ND home-state rate 1.75% on total premium including assessments and policy fees for multistate coverage; explains home-state allocation and nonadmitted insurer guaranty status. Accessed 2026-09-28.
  7. N.D.C.C. Chapter 26.1-44, Surplus Lines Insurance. North Dakota Legislative Branch; §26.1-44-03.1 sets 1.75% tax base, home-state rule, fee inclusion, return premiums; §§26.1-44-08 and related provisions cover placements. Accessed 2026-09-28.
  8. Surplus Lines. North Dakota Insurance Department; Official page states nonadmitted insurers generally do not participate in state-created insurance guaranty funds. 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.

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