A market guide for independent insurance agents. Last reviewed: June 2026.
Texas independent (used car) dealers need three things: a $50,000 GDN surety bond filed with TxDMV (raised from $25K in September 2021; typically $250–$1,000 per 2-year term with decent credit), garage liability that satisfies state minimums, and dealers open lot for inventory. Admitted appetite for small independents is thin, so most placements run through garage-specialty MGAs and E&S markets.
Note on Amwins DealerGuard: it is a 40-year program but targets franchised and large independent dealers with a $10,000 minimum account premium — most small Texas lots fall below it. The realistic small-dealer routes are National Indemnity general agents, Texas Specialty Underwriters, Colony binding markets, and Prime for the distressed accounts.
Markets identified through editorial research (June 2026) and agent placement discussions. Items marked "verify" carry details we could not confirm at the primary source.
| Market / Program | Type | How Agents Access It | Notes |
|---|---|---|---|
| National Indemnity (Berkshire Hathaway) | Admitted/non-admitted by state | Appointed general agents | A++ rated garage program: garage liability, dealers open lot, garagekeepers, for franchised and independent dealers. |
| Texas Specialty Underwriters | TX MGA / surplus lines | MGA submission | Dedicated garage desk with named garage underwriters — auto dealers and repair shops. |
| Colony Specialty (Argo) | Admitted + E&S garage | Wholesale GAs (binding authority) | Dealer operations including new/used autos, trailers, RVs, motorcycles. DOL carries 100% coinsurance — insure inventory to value. |
| Prime Insurance Company | E&S, 50 states | Wholesale / direct producer contracts | A- rated; the market for declined/cancelled and claims-history dealers. |
| RPS / Novatae / Jencap | Wholesalers | Wholesale submission | All three maintain dedicated garage/dealer placement desks. |
| Selective MUSIC (Mesa) / Century Surety | E&S | Wholesale / binding GAs | E&S garage products with published underwriting guidelines. |
| Amwins DealerGuard | Program | Via Amwins | Franchised and large independent dealers; $10,000 minimum account premium; available in TX. Too large for most small used-car lots. |
| GDN bond markets (various sureties) | Surety | Online bond agencies or any appointed surety | $50K TxDMV bond, 2-year term. Commodity product — price it through your surety markets. |
Real placement discussions from independent agents about auto dealer & garage insurance.
A GDN (General Distinguishing Number) requires a $50,000 surety bond filed with TxDMV. Garage liability minimums also apply — verify current figures against Texas Transportation Code §503 / TxDMV, as commonly cited numbers (e.g., $85,000 combined) vary by source.
Prime Insurance Company openly targets declined, cancelled, and claims-history dealers as an E&S writer in all 50 states. Expect surplus lines taxes and tighter terms.
Garage liability covers the operations exposure (test drives, premises, completed ops). Dealers open lot is physical damage on inventory. Most dealer packages combine both with garagekeepers if the dealer services customer vehicles.