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Tennessee garage liability for motor vehicle dealers

Tennessee requires a motor-vehicle or recreational-vehicle dealer to file a certificate showing at least $300,000 per occurrence of garage liability or Any Auto coverage, maintained for the license term. Dealers without an on-site mechanical repair facility must keep an agreement with a nearby operating repair garage. 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.

Tennessee Requirements

RequirementDetails
Dealer insurance certificate$300,000 minimum per occurrence; Garage Liability or Any Auto; maintained for license life 1,2

What to Watch for in Tennessee

  • Match The Entity And Physical Address

    Tennessee’s application instructions require the certificate to show the complete name and physical address of the licensed entity, as well as the policy number and policy period. Check the certificate against the dealer license record before submission. 1

  • Cover All Premises And Operations

    The Motor Vehicle Commission rule calls for comprehensive garage-liability insurance covering all premises and operations. Ask the broker to list every licensed location and include the dealer’s sales, service, and test-drive operations. 2,3

  • Maintain A Repair-Garage Agreement If Needed

    If no mechanical repair facility is located on site, Tennessee requires a service agreement with an operating repair garage within a reasonable distance. Keep the agreement in force during licensing and report a change in the designated facility within 30 days. 1

Who Regulates Insurance in Tennessee

Tennessee Department of Commerce and Insurance

TDCI regulates and licenses insurance companies, agents, brokers, surplus-lines agents, and public adjusters. Its complaint process accepts complaints about agents or companies when the policy was written in Tennessee, and its property/casualty unit reviews filed policy rates, rules, and forms. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 5% of gross premium plus 0.175% SLAS transaction fee For Tennessee-home-state surplus-lines policies, TDCI lists a 5% tax on gross premium and a 0.175% SLAS transaction fee on gross premium; the agent receives an invoice and pays both through SLIP. The sources reviewed do not establish that the fee is always separately charged to the policyholder or resolve guaranty-association treatment, so ask your broker to itemize charges and review the policy notice. 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 Tennessee

  1. Does the Tennessee certificate state at least $300,000 per occurrence and show Garage Liability or Any Auto?
  2. Does the policy cover every licensed premises and the dealer’s complete operations throughout the license period?
  3. If we lack an on-site repair facility, is our service agreement current and is the designated shop within a reasonable distance?

Garage Liability in Tennessee: FAQ

What insurance do Tennessee motor vehicle dealers need? 1

Tennessee requires a certificate for at least $300,000 per occurrence, marked Garage Liability or Any Auto, and coverage must continue for the life of the license. 1

Does a Tennessee car dealer need an on-site repair shop? 1

No, but if no mechanical repair facility is on site, the dealer must maintain an agreement with an operating repair garage within a reasonable distance. 1

Garage Liability in Other States

Other Coverage in Tennessee

Sources

  1. Motor Vehicle/Recreational Dealer License. Tennessee Motor Vehicle Commission; License requirements 2 and 7–8, surety bond, insurance certificate, and off-site repair agreement. Accessed 2026-09-29.
  2. Rules of the Tennessee Motor Vehicle Commission. Tennessee Secretary of State; Rule 0960-01-.15, comprehensive garage liability certificate and insurance requirements. Accessed 2026-09-29.
  3. Motor Vehicle License Renewal, Reinstatement, and Other Resources. Tennessee Motor Vehicle Commission; Motor vehicle/recreational dealer renewal, garage liability must remain active and in good standing. Accessed 2026-09-29.
  4. tennessee insurance regulator. State insurance regulator; TDCI official insurance-division and consumer pages describe department scope, review units and complaint role. Accessed 2026-09-28.
  5. TDCI Agent/Producer Resources. State insurance regulator; Agent Licensing Section licenses producers, business entities, surplus-lines agents, brokers, and public adjusters; page links to Verify License. Accessed 2026-09-28.
  6. File an Insurance Complaint. State insurance regulator; TDCI accepts online complaints about insurers and agents only for policies written in Tennessee; third-party claimants are directed to call. Accessed 2026-09-28.
  7. Surplus Lines Filing Procedures. Tennessee Department of Commerce and Insurance; Tax Payments section: 5% gross premium plus .175% of gross premium SLAS transaction fee; agents receive quarterly invoices and pay via ACH in SLIP. Accessed 2026-09-28.
  8. Tennessee Public Chapter 446 (2011), T.C.A. §56-14-113. Tennessee Secretary of State; Current tax framework enacted in §56-14-113: 5% applies when Tennessee is the insured’s home state; tax collected from insured in addition to premium. Read with current TDCI filing-procedure page for current fee and SLIP handling. 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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