Dealer plate insurance
Dealer plate insurance is the auto policy a licensed dealer carries for the vehicles it drives on dealer plates; the plates themselves carry no coverage. Utah MVED will not issue plates without a copy of the plate insurance declarations page, issued in the name of the licensed business, and wants a current copy with every order and renewal. On the ISO Auto Dealers Coverage Form, the dealership and the people it lets drive are insureds, but a customer on a test drive is covered only up to the state minimum, and only when their own insurance falls short.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
Do dealer plates have insurance?
No. A dealer plate stands in for registration. Utah Code 41-3-501(1) says "a dealer may operate or move a motor vehicle displaying a dealer plate issued by the division upon the highways without registering it" if the dealer "owns or possesses the motor vehicle by consignment for resale." What pays a claim is the dealership's auto policy, and Utah checks for it before releasing plates: under 41-3-505(3) the applicant must show it "complies with the security requirements of Sections 31A-22-302 and 31A-22-303."
Which cars on your plates are covered is decided by the policy. CA 00 25 says "The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos"." Symbol 22 reaches "Only those "autos" you own," so a consigned car can wear your plate in Utah and still fall outside that symbol. If you sell on consignment, ask which symbol on your declarations picks those cars up. A carrier's own dealer form or a state endorsement can word this differently; your declarations and forms schedule decide it.
Do dealer plates need insurance?
In Utah, yes, and MVED checks it on paper. Its dealer license page says to get plates you "complete the plate section of TC-301 and provide a copy of your plate insurance declaration page(s)." Form TC-301 asks for the insurer, its address and phone, and the policy number, then adds: "You must submit a current copy of your plate insurance declaration every time you order or renew plates. Insurance must be issued in the name of the licensed business." A policy in an owner's personal name does not meet that line.
The contents come from 31A-22-302, which says a policy meeting the security requirement "shall include" liability under 31A-22-303 and 304, uninsured and underinsured motorist coverage unless waived, and personal injury protection. The liability floor in 31A-22-304 is 30/65/25, or $90,000 combined, for a policy issued or renewed on or after January 1, 2025.
What does dealer plate insurance cover?
On CA 00 25 the plates sit under Covered Autos Liability, which pays what an insured "legally must pay as damages because of "bodily injury" or "property damage"" from an accident "resulting from the ownership, maintenance or use of covered "autos"." That is injury and damage to other people when a covered car on your plate causes a wreck. A separate general liability section covers injury or damage "resulting from your "auto dealer operations"," meaning the lot and the business.
Liability does not repair the car on the plate. Damage to your own inventory is physical damage coverage, tied to symbol 31: "Any "autos" and the interests in these "autos" described in Item Six of the Declarations." With no symbol entered next to comprehensive or collision, no auto is covered for them, and a test-drive wreck leaves the dealer paying for its own car.
Who is covered when a customer test-drives a car on a dealer plate?
The customer, but only within limits. CA 00 25 lists customers among its insureds with a limit: a customer who "Has no other available insurance (whether primary, excess or contingent)" is an insured "only up to the compulsory or financial responsibility law limits where the covered "auto" is principally garaged," and one with lower limits is covered only for the gap. The dealership itself, "You for any covered "auto"," has no such restriction, and neither does "Anyone else while using with your permission a covered "auto" you own, hire or borrow," apart from listed exceptions such as an employee in his or her own car.
Utah law points the same way. 31A-22-303(2)(b) says "The liability insurance coverage of a permissive user of a motor vehicle owned by a motor vehicle business shall be primary coverage," and the business's coverage is secondary. A "motor vehicle business" includes "a motor vehicle sales agency." So in Utah the customer's own auto policy answers first. Copy the customer's license and insurance card before the keys leave the lot, so you know whose coverage is first in line.
How much does dealer plate insurance cost?
There is no published Utah figure in the two documents a Utah plate order runs through: MVED's dealer page and Form TC-301 print the state's plate fee, not a premium. MVED lists "Dealer plates (optional – $ 12.00 each, limit of 5, plus a small handling fee)."
Massachusetts publishes its residual-market rates. CAR, the Commonwealth Automobile Reinsurers, says in Rule 88 of its dealer rules to "Apply the rate per plate shown in the Rate Section for each dealer registration plate issued to the named insured by the Registrar of Motor Vehicles." Its rate page R-144, dated 3/1/2026, lists per plate, in territories 1 to 10, $1,345 for compulsory bodily injury liability, $109 for personal injury protection, $2,056 for property damage liability and $184 for optional bodily injury, with lower figures in territories 11 to 20. CAR says those rates "are for Unlimited Liability Coverage," full liability coverage for customers. Its limited version, which beyond the Massachusetts compulsory coverages covers a customer only when the customer's own insurance is missing or below the financial responsibility limits, "may be provided by reducing the premium charged." Those are one state's residual-market rates, not a Utah price, but they show the premium counted per plate. In Utah the division "may issue five special dealer plates to each dealer licensed under this chapter plus one additional special dealer plate for every 25 motor vehicles the dealer sells each year," under 41-3-503(3), and none to a dealer that sells fewer than three vehicles in any 12 months, under 503(4).
Is dealer plate insurance different in California, New Jersey or New York?
Yes, in what each state asks to see. New Jersey MVC requires "A Certificate of Insurance reflecting liability coverage in the amount of $100,000 - $250,000 for bodily injury and $25,000 for property damage" that must "specify the total number of plates covered by the policy." It also lets plated cars be assigned to principals and employees and used "for any lawful purpose, including personal use," a use to describe to the insurer when you list drivers.
New York's dealer regulations, 15 NYCRR 78.3(c), say that before plates issue the applicant "must present to the commissioner an insurance I.D. card" covering vehicles "operated under a dealer plate issued to such dealer." California's special plates manual lists no insurance document, and Vehicle Code 11715 lets a prospective buyer test-drive on special plates "for a period not to exceed seven days"; Vehicle Code 16020 still requires that "All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility."
| State | What the state asks for | Where it says so |
|---|---|---|
| Utah | Current plate declarations page, in the licensed business's name, with every order and renewal | MVED dealer page; Form TC-301 |
| New Jersey | Certificate of insurance, $100,000 to $250,000 bodily injury and $25,000 property damage, stating the plate count | NJ MVC dealer page |
| New York | Insurance ID card covering vehicles on the dealer plate | 15 NYCRR 78.3(c) |
| California | No insurance document listed; owners and drivers must be able to show financial responsibility | DMV manual 2.090; Vehicle Code 16020 |
What do you have to keep up after the plates are issued?
Utah plates expire "on June 30 each year" or "upon the cancellation, suspension, or revocation of the licensee's license," and renewal is a new application, so TC-301's demand for a current declarations page comes back every year. The plate record must "account at all times for every special plate issued to the licensee" and "contain the name and address of any person to whom the plate has been assigned to be used," and a lost or stolen plate is reported to the division immediately.
Misuse can cost the plates. Under 41-3-508 the division may suspend or revoke them if the dealer "has made or knowingly permitted illegal use of the plates," effective "immediately upon written notification." 41-3-501(5) rules out rentals, a car the dealer has sold, and a loaded commercial vehicle over 26,000 pounds GVWR without a loaded demonstration permit.
What to have ready for a Utah dealer plate order
TC-301 says plate insurance must be issued in the name of the licensed business.
- 1.Form TC-301 with the plate section filled in
- 2.The insurer's name, address and phone number, and the policy number
- 3.A current plate insurance declarations page in the licensed business's name
- 4.Your plate count: up to five to start, plus one per 25 vehicles sold a year
- 5.The plate fees: $12.00 per dealer plate plus handling
- 6.Your plate record, with the name and address of each person assigned a plate
- 7.To replace a lost or stolen plate: the police report; the plate must also be listed as stolen in NCIC
Is a dealer bond the same as dealer plate insurance?
No. MVED requires a corporate surety dealer bond, Form TC-450, for the license. Plate insurance is the auto policy behind the cars on your plates, and MVED asks for its declarations page separately on TC-301.
Can I put a dealer plate on a car I rent out?
Not in Utah: 41-3-501(5)(a) bars dealer plates on a vehicle leased or rented for compensation. CA 00 25 also excludes physical damage to a covered auto rented to others, unless it is rented to a customer whose own car is with you for service or repair.
Where these answers come from
Each entry carries the exact words of the source so you can check it yourself. Forms, rules and carrier pages change; read the current version before acting.
- 1. Utah Code 41-3-501(1), dealer plates in place of registration
“a dealer may operate or move a motor vehicle displaying a dealer plate issued by the division upon the highways without registering it under Title 41, Chapter 1a, Motor Vehicle Act, if the dealer owns or possesses the motor vehicle by consignment for resale.”
le.utah.gov, accessed October 3, 2026. Version effective May 6, 2026. - 2. Utah Code 41-3-501(5), where dealer plates may not be used
“Dealer plates may not be used: (a) on a motor vehicle leased or rented for compensation; (b) in lieu of registration, on a motor vehicle sold by the dealer; or (c) on a loaded commercial vehicle over 26,000 pounds gross vehicle weight rating unless a special loaded demonstration permit is obtained from the division”
le.utah.gov, accessed October 3, 2026. The sentence ends "in accordance with Section 41-3-502." - 3. Utah Code 41-3-503(3), number of dealer plates
“the division may issue five special dealer plates to each dealer licensed under this chapter plus one additional special dealer plate for every 25 motor vehicles the dealer sells each year.”
le.utah.gov, accessed October 3, 2026. Subsection (4): a dealer that does not sell at least three new or used motor vehicles in any 12-month period may not be issued or have renewed any special dealer plates. - 4. Utah Code 41-3-505(3), security requirement for special plates
“The applicant shall also establish to the satisfaction of the division that the applicant complies with the security requirements of Sections 31A-22-302 and 31A-22-303.”
le.utah.gov, accessed October 3, 2026. Version effective May 7, 2025. - 5. Utah Code 41-3-506(1), expiration of special plates
“A special plate issued expires: (a) on June 30 each year; or (b) upon the cancellation, suspension, or revocation of the licensee's license.”
le.utah.gov, accessed October 3, 2026. Subsection (3): a new plate or renewal decal for the ensuing year requires a new application and the plate fee. - 6. Utah Code 41-3-507(2), plate record contents
“The record shall contain the name and address of any person to whom the plate has been assigned to be used.”
le.utah.gov, accessed October 3, 2026 - 7. Utah Code 41-3-507(3), plate record accounts for every plate
“The record shall: (a) account at all times for every special plate issued to the licensee; and (b) be open to inspection by any peace officer or any officer or employee of the division.”
le.utah.gov, accessed October 3, 2026 - 8. Utah Code 41-3-507(4), lost or stolen plates
“A licensee shall report immediately the licensee's lost or stolen special plate to the division.”
le.utah.gov, accessed October 3, 2026. Subsection (4)(b): a replacement only after the plate has expired, or after a police report and a National Crime Information Center stolen listing. - 9. Utah Code 41-3-508(1)(b), illegal use as a ground to suspend or revoke special plates
“has made or knowingly permitted illegal use of the plates”
le.utah.gov, accessed October 3, 2026. Subsection (1) opens: "The division may suspend or revoke the special plate or plates issued to a dealer, dismantler, manufacturer, remanufacturer, or transporter if it determines that the person:" - 10. Utah Code 41-3-508(2)(a), suspension takes effect on notice
“Suspension or revocation of special plates takes effect immediately upon written notification to the licensee by the division.”
le.utah.gov, accessed October 3, 2026 - 11. Utah Code 31A-22-301(2), definition of motor vehicle business
“"Motor vehicle business" means a motor vehicle sales agency, repair shop, service station, storage garage, or public parking place.”
le.utah.gov, accessed October 3, 2026 - 12. Utah Code 31A-22-302(1), required components of a policy
“Every policy of insurance or combination of policies purchased to satisfy the owner's or operator's security requirement of Section 41-12a-301 shall include: (a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304”
le.utah.gov, accessed October 3, 2026. Paragraphs (b) to (d) add uninsured and underinsured motorist coverage unless affirmatively waived, and personal injury protection. Version effective May 6, 2026. - 13. Utah Code 31A-22-303(2)(b), permissive user's coverage is primary
“The liability insurance coverage of a permissive user of a motor vehicle owned by a motor vehicle business shall be primary coverage. (ii) The liability insurance coverage of a motor vehicle business shall be secondary to the liability insurance coverage of a permissive user”
le.utah.gov, accessed October 3, 2026 - 14. Utah Code 31A-22-304(2), minimum limits from January 1, 2025
“a policy issued or renewed on or after January 1, 2025, containing motor vehicle liability coverage may not limit the insurer's liability under that coverage below the following”
le.utah.gov, accessed October 3, 2026. The figures that follow: $30,000 one person, $65,000 two or more, $25,000 property damage, or $90,000 in any one accident. - 15. Utah DMV, Motor Vehicle Enforcement Division, Dealer License page, How to Become a Dealer, step 9
“In order to obtain dealer plates, complete the plate section of TC-301 and provide a copy of your plate insurance declaration page(s). Initially there is a limit of five plates.”
dmv.utah.gov, accessed October 3, 2026. The same page's Dealer Plates section adds: "For every 25 vehicles sold, the dealer can apply for one additional dealer plate." - 16. Utah DMV, Motor Vehicle Enforcement Division, Dealer License page, fees
“Dealer plates (optional – $ 12.00 each, limit of 5, plus a small handling fee)”
dmv.utah.gov, accessed October 3, 2026. Form TC-301 shows a $2.50 basic handling fee and $1.00 more when ordering more than two plates. - 17. Utah DMV, Motor Vehicle Enforcement Division, Dealer License page, bond
“TC-450, Bond of Motor Vehicle Dealer, Crusher or Body Shop Dealers must file a corporate surety dealer bond with MVED.”
dmv.utah.gov, accessed October 3, 2026 - 18. Utah Form TC-301, Bonded Motor Vehicle Business Application, Special Plates & Decals section
“You must submit a current copy of your plate insurance declaration every time you order or renew plates. Insurance must be issued in the name of the licensed business.”
files.tax.utah.gov, accessed October 3, 2026. The note follows blanks for insurance company, address, telephone number and policy number. Current form on the Tax Commission's site, PDF modified September 18, 2025. - 19. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section I.A, covered auto symbols
“The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos".”
assets.touchpointmarkets.com, accessed October 3, 2026. ISO form text, the copy FC&S (PropertyCasualty360) links, hosted at assets.touchpointmarkets.com. Carriers may use their own dealer forms or state amendatory endorsements; Utah Changes CA 01 24 was not obtained. - 20. ISO CA 00 25 11 20, Auto Dealers Coverage Form, symbol 22, owned autos only
“Only those "autos" you own (and for Covered Autos Liability Coverage any "trailers" you don't own while attached to power units you own).”
assets.touchpointmarkets.com, accessed October 3, 2026 - 21. ISO CA 00 25 11 20, Auto Dealers Coverage Form, symbol 31, dealers' autos (physical damage)
“Any "autos" and the interests in these "autos" described in Item Six of the Declarations.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 22. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section I.D, Covered Autos Liability insuring agreement
“We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of covered "autos".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 23. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section I.D.2, Who Is An Insured, the named insured
“The following are "insureds" for covered "autos": a. You for any covered "auto".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 24. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section I.D.2.b, permissive users
“Anyone else while using with your permission a covered "auto" you own, hire or borrow except:”
assets.touchpointmarkets.com, accessed October 3, 2026. The exceptions that follow include the owner you hire or borrow from, an employee driving his or her own auto, someone working in another business of selling, servicing or repairing autos, and the limits on customers. - 25. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section I.D.2.b(4), customers as insureds
“Your customers. However, if a customer of yours: (a) Has no other available insurance (whether primary, excess or contingent), they are an "insured" but only up to the compulsory or financial responsibility law limits where the covered "auto" is principally garaged.”
assets.touchpointmarkets.com, accessed October 3, 2026. Paragraph (b): a customer whose other insurance is below those limits is an insured only for the amount by which the limits exceed it. - 26. ISO CA 00 25 11 20, Auto Dealers Coverage Form, Section II.A, general liability insuring agreement
“We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from your "auto dealer operations".”
assets.touchpointmarkets.com, accessed October 3, 2026 - 27. ISO CA 00 25 11 20, Auto Dealers Coverage Form, physical damage exclusion for rented autos
“Any covered "auto" leased or rented to others unless rented to one of your customers while their "auto" is left with you for service or repair.”
assets.touchpointmarkets.com, accessed October 3, 2026 - 28. Commonwealth Automobile Reinsurers, Commercial Automobile Insurance Manual, Section VI Garage Dealers, Rule 88.A (effective 2026-03-01)
“Apply the rate per plate shown in the Rate Section for each dealer registration plate issued to the named insured by the Registrar of Motor Vehicles.”
commauto.com, accessed October 3, 2026. Massachusetts residual market only. The same rule charges additional plates pro rata and rates each plate by the location where it is used. - 29. Commonwealth Automobile Reinsurers, Massachusetts Commercial Automobile rates, Garages, page R-144 (3/1/2026), rates per plate
“RATES PER PLATE Coverage A-1 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,345 1,345”
commauto.com, accessed October 3, 2026. Linked from CAR's 2026 rates index under Garages, Liability Rates. Table headed "GARAGES SUBJECT TO THE MASSACHUSETTS COMPULSORY LAW", territories 1 to 20. Territories 1 to 10: A-1 1,345, A-2 109, PDL 2,056, B 184; territories 11 to 20 run from 267 to 803 for A-1. Massachusetts residual market only. - 30. Commonwealth Automobile Reinsurers, Garages Rating Procedures, page R-142 (3/1/26), coverage codes
“COMPULSORY BODILY INJURY LIABILITY (Coverage A-1) Refer to rate pages. PERSONAL INJURY PROTECTION (Coverage A-2) Refer to rate pages. OPTIONAL BODILY INJURY LIABILITY (Coverage B)”
commauto.com, accessed October 3, 2026. The same page lists PROPERTY DAMAGE LIABILITY (Coverage C); the rate page labels that row PDL. - 31. Commonwealth Automobile Reinsurers, Commercial Automobile Insurance Manual, Section VI Garage Dealers, Rule 87.A (effective 2026-03-01)
“Limited Liability Coverage is afforded to customers only if there is no other automobile liability insurance or if the limit of other insurance is lower than any financial responsibility requirement.”
commauto.com, accessed October 3, 2026. The sentence opens "Except for the Massachusetts compulsory coverages,". - 32. Commonwealth Automobile Reinsurers, Commercial Automobile Insurance Manual, Section VI Garage Dealers, Rule 87.B (effective 2026-03-01)
“The rates shown on the Garages Liability Rates pages in the Rate Section are for Unlimited Liability Coverage.”
commauto.com, accessed October 3, 2026. Rule 87.B.1: "This coverage affords full liability coverage to customers." - 34. New Jersey MVC, New and Used Car Dealerships and Leasing Licenses, Insurance/Bonding
“A Certificate of Insurance reflecting liability coverage in the amount of $100,000 - $250,000 for bodily injury and $25,000 for property damage is required at the time of approval and must specify the total number of plates covered by the policy”
nj.gov, accessed October 3, 2026. The page adds that the certificate should read to NJMVC Business Licensing Services Bureau, Dealer Unit. - 35. New Jersey MVC, Notice to Motor Vehicle Dealers Regarding Changes to Dealer Plate Requirements (May 6, 2009)
“Vehicles owned by a New Jersey licensed motor vehicle dealer may be assigned to dealership principals or employees for product familiarization or compensation purposes, and may be used for any lawful purpose, including personal use”
nj.gov, accessed October 3, 2026. Describes N.J.S.A. 39:3-18 as amended by P.L. 2007, c. 335. - 36. New York DMV, CR-78 Motor Vehicle Dealers & Transporters Regulations, 15 NYCRR 78.3(c), proof of insurance
“Before dealer or transporter plates will be issued, the applicant for such plates must present to the commissioner an insurance I.D. card as prescribed by regulations of the commissioner covering any motor vehicle owned or controlled by the dealer and operated under a dealer plate issued to such dealer.”
dmv.ny.gov, accessed October 3, 2026. Read in a browser; dmv.ny.gov returns 403 to curl. On 2026-10-03 the quote was also matched in the Internet Archive copy captured 2025-11-21 (edition CR-78 (7/22)), where section 78.3 is headed "Application for dealer's registration." - 37. California DMV, Vehicle Industry Registration Procedures Manual, 2.090 Special Dealer, Manufacturer, Remanufacturer, and Distributor License Plates
“Special license plates may be used by licensed dealers, manufacturers, remanufacturers, and distributors to operate any vehicle owned or lawfully possessed by the licensee.”
dmv.ca.gov, accessed October 3, 2026. The section covers use, additional plates, replacements and surrender; it lists no insurance document. - 38. California Vehicle Code 11715(a), special plates and test drives
“may also be operated or moved upon the highways without registration for a period not to exceed seven days by a prospective buyer or lessee who is test-driving the vehicle for possible purchase or lease”
leginfo.legislature.ca.gov, accessed October 3, 2026. The sentence opens "A vehicle for sale or lease by a dealer". - 39. California Vehicle Code 16020(a), financial responsibility
“All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.”
leginfo.legislature.ca.gov, accessed October 3, 2026
The state will not issue the dealer license or plates without the bond and the policy
Utah MVED and other dealer licensing offices: the dealer bond, dealer plate insurance and garagekeepers coverage.
Elsewhere on the site
Ordering or renewing dealer plates?
Text Redoubt your dealer license name exactly as MVED has it, the number of plates you hold or are ordering, and your current declarations page if you have one. We will check the named insured and the covered auto symbols against what TC-301 asks for, and tell you what has to change before the order goes in.
This is general insurance information, not legal advice or a coverage determination. The policy forms, the endorsements the carrier issues, and the requirement in writing from whoever is asking control.