Texas Independent Used Car Dealers Insurance
Underwriting brief for Texas used car dealers (2,520 active Texas establishments across 81 counties). We compare 30+ TDI-admitted and specialty commercial carriers for used car dealers with fast Certificate of Insurance (COI) turnaround.
Texas Used Car Dealers Market Footprint
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Classification & Compliance Specs
- NAICS Code
- 441120 — Used Car Dealers
- NCCI Workers' Comp Codes
- 8391 (Automobile Salespersons & Service), 8748 (Auto Sales)
- ISO GL / Coverage Form
- CA 00 05 Auto Dealers Coverage Form + Dealers Open Lot
- Texas Regulator / Spec
- TxDMV GDN Dealer License & $50,000 Surety Bond (Tex. Transp. Code §503.033)
TxDMV General Distinguishing Number (GDN) dealers must maintain a $50,000 Texas Motor Vehicle Dealer Surety Bond and statutory Commercial Auto minimums for metal dealer plates.
Where Used Car Dealers Cluster in Texas
- Harris: 545 firms (21.6% of TX) • 3,267 employees
- Dallas: 356 firms (14.1% of TX) • 2,287 employees
- Tarrant: 213 firms (8.5% of TX) • 2,126 employees
Primary Loss Exposures
- Unaccompanied customer test-drive crashes and dealer-plate runner accidents.
- Catastrophic Texas hailstorms totaling 20–80 vehicles on an uncanopied lot.
- TxDMV title-transfer errors, odometer disclosures, and floorplan lender audit defaults.
Key Endorsements We Verify
- Dealers Open Lot (Physical Damage) with tiered Texas Hail Deductibles & Floorplan Loss Payee
- Auto Dealers E&O (Title Errors, Odometer, Truth-in-Lending, Prior-Damage Disclosure)
- False Pretense / Trick & Device coverage for fraudulent test-drive theft
Used Car Dealers Insurance FAQs
What is the mandatory Texas Used Car Dealer Bond amount?
Texas Transportation Code §503.033 requires a $50,000 Motor Vehicle Dealer Surety Bond for a 2-year TxDMV GDN license.
What is Dealers Open Lot insurance?
Open Lot is physical damage coverage (comprehensive, collision, theft, and Texas hail) for your dealership's vehicle inventory, required by floorplan lenders.
Does Garage Liability cover a customer who steals a car during a test drive?
Standard theft covers break-ins, but you need 'False Pretense' coverage if a scammer drives off using fake ID or a bad check.
Can a brand-new Texas GDN dealer get Open Lot + Bond together?
Yes—we issue the $50,000 TxDMV Surety Bond and Auto Dealers Liability/Open Lot package for new and established lots.