- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If your state’s motor vehicle agency told you to get an auto dealer bond, send us the requirement. We’ll identify the bond, check the amount and form, and tell you what the surety needs for a quote.
An auto dealer bond is a surety bond that many states require as part of motor vehicle dealer licensing. It guarantees that the dealer will follow the state’s dealer licensing laws.
No. A dealer bond is a guarantee tied to your license. Dealers often need separate insurance, such as garage liability, and the state may have its own insurance requirements too.
If you are not sure which requirement is which, send us what the state gave you.
It covers what the state’s bond form and dealer law say it covers. In general, it is there to protect buyers and the public from financial harm caused by a dealer’s violation of licensing law, such as problems with titles, registration, or sales practices.
Read the bond form your state requires. The wording decides who can claim and for what.
It depends on the bond and the surety company. Many dealer bonds are credit-based, so credit can affect both approval and price.
If your credit is not great, do not assume you cannot be bonded. Tell us up front and we can look at the markets available for your bond.
It can happen. A change in business name, ownership, or location may require a new or amended bond. What the state requires depends on the state and the type of change.
Check with your licensing agency before the change, and tell us what changed.
You normally pay a premium for the bond, not the full bond amount. A $50,000 bond does not normally cost $50,000.
For dealer bonds, the price usually depends on the bond amount your state sets, your credit, and your financial and business history. Different surety companies can price the same dealer differently.
Send the dealer licensing paperwork or the state’s bond instructions. The most useful items are:
It depends on the bond. Straightforward dealer bonds can often be issued quickly when the form and applicant information are complete. Larger bond amounts, credit issues, or unusual forms can take longer.
If your dealer license application has a deadline, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
Yes. Dealer license classes, bond amounts, forms, and filing rules vary by state, and some states require a separate bond for each license class.
Tell us what you’re applying for or send us the paperwork from the motor vehicle agency. We’ll take it from there.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
