Motor Vehicle Dealer Bonds

What is Motor Vehicle Dealer Bond? (What does the Surety Bond cover?)

When reviewing your state’s licensing department’s requirements to receive your Motor Vehicle Dealer License, you may see a Surety Bond on the list. The Surety Bond requirement is to enforce dealers to follow state rules and regulations and prevent them from engaging in unethical business practices.

Check out what our clients are saying about us on Google:

Easiest system to use and, by far, the fastest company with providing E&O and Surety bond insurance. HIGHLY recommend!
Mortgage H.
Mortgage H.
20:51 02 Mar 22
Surety Solutions goes above and beyond their duty to make their customer feel confident that they are choosing the right company. Jessi Wimer personally helped me through the process. She was very informative and made sure that every concern I had was dealt with in the most professional and efficient way. Thank you for your hard work!
Chris L.
Chris L.
17:07 08 Feb 22
Excellent service; they exceeded my expectations in timeliness and professionalism.
Bridgette M. B.
Bridgette M. B.
23:24 10 Dec 21
Client services provided quick and accurate responses.
James G.
James G.
17:49 30 Nov 21
Very helpful and they respond quickly to any questions.
Eva Hammel H.
Eva Hammel H.
16:46 30 Nov 21
Katrina Fearn, Client Service Manager at Surety, is an absolute pleasure to work with!! She is always highly responsive, and has provided me nothing but excellent service since our first interaction. I highly recommend working with her and the Surety team. They will always go above and beyond. Thank you for all that you've done!
Zakieh A.
Zakieh A.
16:38 04 Nov 21
I have been working with Steve Shike and he has been so helpful. I purchased the wrong bond and Steve instantly requested a refund on my behalf and called back with the good news. I appreciate him for helping me figure out my situation in such a timely matter. Thank you Steve for responding to my calls and emails promptly.
Ashley W.
Ashley W.
18:25 10 Aug 21
Gerry J.
Gerry J.
16:30 08 Aug 21
Katrina and Surety Solutions was awesome to work with and made the process seamless. Even after I, PERSONALLY, made a mistake and caused a delay, Katrina was able to spot my mistake and kindly address the error while still delivering my bond as if nothing had happened.I have nothing but good things to say about Surety Solutions.
Xavier A.
Xavier A.
15:40 22 Jul 21
jerry T.
jerry T.
04:44 03 Jul 21
Katrina and Surety Solutions were very helpful and fast. I needed to change the bond I ordered and they handled that within minutes. Their response time to emails and request were great and that is why I will continue to work them both. All I ask for is relatively decent response time when there are issues that need resolved and Katrina far exceeded that and was friendly on top of everything else. Well done.Kris
Kristopher M.
Kristopher M.
14:23 24 Jun 21
Grace answered the phone immediately with a positive attitude and willingness to help. She followed through professionally and promptly through entire process.
Danny S.
Danny S.
14:41 15 Jun 21
Surety Solutions has been the most amazing and easiest company to work with on Bonds in my past 17 years of doing insurance. They are very quick to respond and very personal to work with. Jake Durrant is absolutely the best!
Bonnie A.
Bonnie A.
20:39 20 May 21
Suzie T.
Suzie T.
17:14 07 May 21
Easy experience.
Tonya B.
Tonya B.
01:18 21 Apr 21
I had the pleasure of working with Katrina Fearn to obtain mortgage broker surety bonds and I can say with zero hesitation, that she is wonderful to work with. Extremely responsive, communicative and helpful. Surety Solutions + Katrina = Great Partnership. Thanks!!!
Ryan M.
Ryan M.
20:18 19 Apr 21
Can't say enough good things about Katrina Fearn, she was exceptionally prompt, responsive and a true professional in getting me the bond in a timely manner. Just amazing customer service.
Umesh M.
Umesh M.
23:34 07 Apr 21
I needed a copy of my bond and with people working form home I thought is was going to take a long time. I got an email with the copy of my bond with in minutes. Never seen anything like that. Very Professional and fast response. thank you for good business ethic
Ernesto U.
Ernesto U.
19:08 10 Feb 21
Just obtained Mortgage Broker Surety Bond for two states. not only the price was right but service and professionalism exceeded my expectations. i can't thank Steve enough and wish i knew them sooner.
Ruslan K.
Ruslan K.
22:43 08 Jan 21
I bought a surety bond for my business. The name on the application has my middle name on it and the policy didn't. That would or could have created a problem. I wrote to customer service to complain. Well not complain but ask for it to be changed. Since it was Thanksgiving weekend I wasn't expecting to hear back till this week sometime. Well to my surprise it was "Very" Quickly. JD was very helpful and professional. Fixed it then contacted me with the corrected version. Couldn't be happier. " Good Business is Good Business"
MrDarryk
MrDarryk
05:17 01 Dec 20
JP M.
JP M.
01:46 04 Nov 20
Amazing customer service and friendly and informative reps.
Obsesion H.
Obsesion H.
04:45 26 Oct 20
Surety solutions handled my request for a Guardianship Bond professionally, with great care and provided great value to my family. Of all of the insurance companies I contacted for my need, Surety Solutions was by far the most responsive, courteous and knowledgeable. I very much appreciate their fine service!!
Irena S.
Irena S.
03:00 25 Sep 20
The entire staff from Jake to Katrina were more than professional and bent over backwards to meet mine and The State of California's requirements
Kirk G.
Kirk G.
19:10 23 Jun 20
This process could not have been easier! Mr. Chipman sent me an email link and I just followed the steps. I highly recommend Mr. Beau Chipman to anyone who needs this service.
Sharon H.
Sharon H.
23:29 28 Apr 20
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State Bond Type Quotes
Alabama Automotive Dismantler and Parts Recycler Bond Get Quotes
Alabama Used Motor Vehicle Dealer Bond Get Quotes
Alaska Motor Vehicle Dealer - Buyer's Agent Bond New Get Quotes
Alaska Motor Vehicle Dealer - Buyer's Agent Bond Used Get Quotes
Alaska Motorcycle Dealer Bond Get Quotes
Arizona Motor Vehicle Dealer Bond Get Quotes
Arizona Motor Vehicle Wholesale Auction Dealer Bond Get Quotes
Arizona Vehicle Recycler Bond Get Quotes
Arkansas New Motor Vehicle Dealer Bond Get Quotes
Arkansas New Motor Vehicle Dealer Branch Location for Used Vehicles Bond Get Quotes
Arkansas New Motorcycle, ATV, Dealer, or Lessor Bond Get Quotes
Arkansas Used Motor Vehicle Dealer, Wholesaler or Auto Auction Bond Get Quotes
California Motor Vehicle Commercial Requester Account Bond Get Quotes
California Motor Vehicle Dealer Bond ($10k) Get Quotes
California Motor Vehicle Dealer Bond ($50k) Get Quotes
California Motor Vehicle Fuel Distributor Bond Get Quotes
California Motor Vehicle Lessor – Retailer Bond Get Quotes
California Motor Vehicle Registration Servicer Bond Get Quotes
California Motor Vehicle Verifier Bond Get Quotes
California Motorcycle or Wholesale-Only Dealer Bond Get Quotes
Colorado Motor Vehicle Salesperson or Buyer Agent Bond Get Quotes
Colorado New Motor Vehicle Dealer-Wholesaler Bond Get Quotes
Colorado Used Motor Vehicle Dealer Bond Get Quotes
Connecticut Motor Vehicle Dealer Bond - New Get Quotes
Connecticut Motor Vehicle Dealer Bond - Used Get Quotes
Connecticut Motor Vehicle Repairer Bond Get Quotes
Connecticut Motor Vehicle Leasing or Rental Company Bond Get Quotes
Delaware Motor Vehicle Dealer Bond Get Quotes
District of Columbia Motor Vehicle Dealer Bond Get Quotes
District of Columbia Motor Vehicle Repossessor Bond Get Quotes
Florida Franchise Motor Vehicle Dealer Bond Get Quotes
Florida Independent Motor Vehicle Dealer Bond Get Quotes
Florida Mobile Home Manufacturer Bond Get Quotes
Florida Recreational Vehicle Dealer Bond Get Quotes
Florida Recreational Vehicle Manufacturer Bond Get Quotes
Georgia Used Motor Vehicle Dealer Bond Get Quotes
Georgia Used Motor Vehicle Parts Dealer Bond Get Quotes
Idaho Motor Vehicle Dealer Bond - Used Get Quotes
Idaho Motor Vehicle or Vessel Dealer Bond Get Quotes
Illinois Motor Vehicle Dealer – Designated Agent Bond Get Quotes
Indiana Motor Vehicle Merchandising Bond Get Quotes
Iowa Motor Vehicle Dealer Bond Get Quotes
Kansas Motor Vehicle Dealer Bond - Used Get Quotes
Kansas Vehicle Dealer Bond Get Quotes
Louisiana Motor Vehicle Dismantler – Parts Recycler Get Quotes
Louisiana Motor Vehicle Lessor – Used Facility Bond Get Quotes
Louisiana New Motor Vehicle Dealer Used Facility Bond Get Quotes
Louisiana Reconditioned-Rebuilt Motor Vehicle Dealer Bond Get Quotes
Louisiana Recreational Products Dealer Bond Get Quotes
Louisiana Specialty Motor Vehicle Dealer Bond Get Quotes
Louisiana Used Motor Vehicle Dealer Bond Get Quotes
Maine New or Used Motor Vehicle Dealer Bond - Continuous Get Quotes
Maryland Boat Dealer Bond Get Quotes
Maryland Boat Trailer Dealer Bond Get Quotes
Maryland Motor Vehicle Salesman Bond Get Quotes
Maryland Motor Vehicle/Trailer Dealer Bond Get Quotes
Massachusetts Used Motor Vehicle Dealer Bond Get Quotes
Michigan Uniform Motor Vehicle Dealer Bond Get Quotes
Minnesota Motor Vehicle Dealer Bond Get Quotes
Minnesota Motor Vehicle Dealer - Term Bond Get Quotes
Mississippi Designated Agent Bond Get Quotes
Mississippi New Motor Vehicle Dealer Bond Get Quotes
Missouri Motor Vehicle Dealer Bond Get Quotes
Montana Motor Vehicle Dealer Bond Get Quotes
Montana Motor Vehicle Dealer Bond - Manufactured Dwelling Get Quotes
Montana Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Nebraska Motor Vehicle Auction Dealer Bond Get Quotes
Nebraska Motor Vehicle Dealer Bond - New Vehicles Get Quotes
Nebraska Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Nebraska Motor Vehicle-Trailer-Wholesale-Motorcycle Dealer Bond Get Quotes
Nevada Motor Vehicle Dealer Bond - Motorcycles Get Quotes
Nevada Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Nevada Motor Vehicle Dealer/Vehicle Industry Business License Bond Get Quotes
New Hampshire Motor Vehicle Dealer Bond - Motorcycles Get Quotes
New Hampshire Motor Vehicle Dealer Bond - New Vehicles Get Quotes
New Hampshire Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
New Hampshire Motor Vehicle Sales Finance Company Bond Get Quotes
New Jersey Motor Fuels Distributor Tax Bond - Continuous Get Quotes
New Jersey Used Motor Vehicle Dealer License Bond Get Quotes
New Mexico Motor Vehicle Dealer Bond - New Vehicles Get Quotes
New Mexico Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
New Mexico Motor Vehicle Dealer or Dismantler Bond Get Quotes
New York Motor Vehicle Dealer Bond Get Quotes
New York Motor Vehicle Dealer Bond - New Vehicles Get Quotes
North Carolina Used Motor Vehicle Dealer Bond Get Quotes
North Carolina New Motor Vehicle Dealer Bond Get Quotes
North Carolina Motor Vehicle Dealer- Additional Location Bond Get Quotes
North Dakota Motor-Powered Recreational Vehicle Bond Get Quotes
North Dakota Trailer-Dealer Bond Get Quotes
Ohio Remanufactured Vehicle Dealer Bond Get Quotes
Oklahoma Oklahoma City - Used Trailer or Automobile or Parts Dealer Bond Get Quotes
Oklahoma Used Motor Vehicle Dealer Bond Get Quotes
Oklahoma Used Motor Vehicle Salesperson Bond Get Quotes
Oklahoma Wholesale Motor Vehicle Dealer Bond Get Quotes
Oregon Motor Vehicle Dealer Bond ($2k) Get Quotes
Oregon Motor Vehicle Dealer Bond ($40k) Get Quotes
Oregon Motor Vehicle Dealer Bond ($50k) Get Quotes
Oregon Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Pennsylvania Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond Get Quotes
Pennsylvania Motor Vehicle Card Agent Bond Get Quotes
Pennsylvania Motor Vehicle Collector-Repossessor Bond Get Quotes
Pennsylvania Motor Vehicle Dealer-Manufacturer Bond Get Quotes
Pennsylvania Motor Vehicle Messenger Service Bond Get Quotes
Pennsylvania Motor Vehicle Salvor Bond Get Quotes
Rhode Island Motor Vehicle Dealer License Bond Get Quotes
Rhode Island Motor Vehicle Dealer's License Bond - Used Vehicles Get Quotes
South Carolina Motor Vehicle Dealer or Wholesaler Bond Get Quotes
South Carolina Motor Vehicle Wholesale Auction-Trailer-Motorcycle Bond Get Quotes
South Dakota Boat Dealer Bond Get Quotes
South Dakota Emergency Vehicle or Trailer Dealer Bond Get Quotes
South Dakota Motor Vehicle Dealer Bond Get Quotes
South Dakota Motorcycle or Snowmobile Dealer Bond Get Quotes
Tennessee Motor Vehicle Dealer Bond Get Quotes
Texas Motor Vehicle Dealer Bond Get Quotes
Utah Motor Vehicle Body Shop Bond Get Quotes
Utah Motor Vehicle Crusher Bond Get Quotes
Utah Motor Vehicle Dealer Bond Get Quotes
Utah Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Utah Motorcycle Dealer Bond Get Quotes
Vermont Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Virginia Motor Vehicle Dealer Bond Get Quotes
Virginia Motorcycle, Trailer, or T&M Vehicle Dealer Bond Get Quotes
Virginia Watercraft Dealer Bond Get Quotes
Washington Motor Vehicle Dealer Bond Get Quotes
Washington Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Washington Recreational License Dealer Bond Get Quotes
Washington Vehicle Maunfacturer Bond Get Quotes
Washington Vessel Dealer License Bond Get Quotes
West Virginia Motor Vehicle Lessor Bond Get Quotes
West Virginia New Motor Vehicle Dealer Bond Get Quotes
West Virginia Used Motor Vehicle Dealer Bond Get Quotes
Wisconsin Motor Vehicle Dealer Bond Get Quotes
Wisconsin Motor Vehicle Dealer Bond - Used Vehicles Get Quotes
Wyoming Motor Vehicle Dealer Bond Get Quotes
Wyoming Motor Vehicle Dealer Bond - Other Get Quotes
Wyoming Motor Vehicle Dealer Bond - Used Vehicles Get Quotes

Most states require dealers purchase a Surety Bond prior to receiving their license. The state wants to make sure your customers are protected when buying a car from your dealership. Also, the licensing board doesn’t want to be held financially responsible for paying out to your customers if you break the rules.

How does the bond work?

First, let’s make it clear the Surety Bond does not serve the same purpose as traditional insurance. You are not covered under the bond. However, the customers who purchase vehicles from your dealership are covered.

A Motor Vehicle Dealer Bond is a mix of insurance and a line-of-credit. This bond is a contract between you and two other parties.

The Principal – You, the licensed dealer, are listed as the principal on the bond.

The Obligee – The licensing board requiring you to get a Surety Bond.

The Surety – This is the company through which you choose to purchase your bond.

If your customer files a complaint against your business, they may choose to make a claim against your bond. The surety company will payout up to the full bond amount to the claimant if they find the claim to be valid.

What happens if a claim is made on my Motor Vehicle Dealer Bond?

Both you and the surety don’t expect to have a claim filed against the bond. This is why the premium is significantly less than the necessary bond amount. That being said, claims do happen.

In the event your customer files a claim against your bond, your surety company will perform a thorough investigation on the claim. After the investigation concludes, the surety company will payout to the claimant up to the full bond amount if they find the claim to be valid. However, as the principal of the bond, you are responsible for making the surety financially whole by paying them back in full.

Types of Dealer Bonds

The type of Motor Vehicle Dealer Bond and bond amount you require depends on the types of vehicles you sell and the state you operate your business. While many states require a general Motor Vehicle Dealer Surety Bond, some require a specific type of bond for certain license types.

The different type of Dealer Licensing Bonds include:

Auction Dealer Bonds: If you’re planning to sell vehicles at auction, this may be the bond type you require.

Franchise (New) Dealer Bonds: Dealers exclusively selling new vehicles.

Independent (Used) Vehicle Dealer Bonds: Dealers selling used vehicles.

Salvage (Dismantler / Parts Recycler) Dealer Bonds: Selling non-functional vehicles to be used as parts.

Recreational (Trailer / Motorsports / RV) Dealer Bonds: Check with your state’s licensing board to verify if you’ll need this specialty bond type or if a general Motor Vehicle Dealer Bond will cover these types of vehicles.

Wholesale Dealer Bonds: Dealers selling used vehicles to other dealers.

Note that not every state requires licensed dealers to be bonded. The best method to determine exactly what you need is to contact your state’s licensing department. They will provide you with a copy of the bond form if they require you to get a Surety Bond. We’ve created a helpful interactive form to help you determine what type of Motor Vehicle Bond and bond amount you’ll need here.

How much does the bond cost?

Among the factors used to determine the cost of your bond, the surety reviews the amount of the bond, the credit score of all the owners and the length of the bond term. The greater the risk associated with your policy, the higher you can expect to pay in premium. However, many of our surety partners offer Motor Vehicle Dealer Bonds as low as 1% or less of the bond amount. Find quotes for your bond, today!

Can I get a Motor Vehicle Dealer License Bond with bad credit?

Having bad credit doesn’t automatically exclude you from being eligible for a Surety Bond. In fact, we’ve assisted many dealers with non-standard credit get their Motor Vehicle Dealer License Bonds. Due to the higher risk, applicants with non-standard credit typically get quotes within 5%-15% of the bond amount they require, when approved.

We perform a soft-pull when running credit, so your score will not adversely be affected when checked. See what you’ll pay for your bond using the button below.

How to get a Dealer License Bond?

When it comes to getting your Motor Vehicle Dealer Bond, don’t settle for just one quote. We at Surety Solutions, A Gallagher Company have partnered with leading surety companies to bring you an online marketplace to ensure you find the best deal for your bond.

On average, we save our clients 35% on their Dealer Bond cost.

We are licensed to issue bonds in all 50 states. Let us know if you have questions about the bond or our application. Contact our surety professionals by emailing info@suretysolutions.com or call (866) 722-9239. There is no need to wait. View quotes for your Auto Dealer Bond, today!

Additional Surety Bond Resources

Find out everything you need to know about becoming a licensed dealer.

Step-by-step state tutorials on how to become a licensed car dealer.

Answers to frequently asked questions about getting your license.

Make sure you are applying for the correct bond amount with our Bond Amount Calculator.

Worried about a felony on your record? Check out this resource.

Download our free ebook on being a licensed dealer.

Need a different type of Surety Bond?

Click on your state below.

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