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Individuals looking to get their motor vehicle dealer license typically have to provide a mvd or used car dealer surety bond to guarantee their dealership will comply with industry regulations. This type of license and permit bond is known by a number of different names: automobile bond, car dealer bond, dealer bond, DMV bond, motor vehicle dealer bond, used car dealer bond, etc. No matter the exact name, this bond type is used to protect consumers from fraud and other wrongful actions committed by dealerships and their employees.  In many cases they will also need a Garage Liability Insurance policy as well.


All American Bonds and Insurance are pros at Dealer Bonds and Garage Liability Insurance.  Best of all we do it QUICKER than anyone else!


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Auto dealer bonds and insurance hassle free guarantee

How much does a Dealer Bond cost?

Many factors are considered when determining the price of a dealer bond, such as bond amount, bond term, state, and credit history. Generally, the cost of the dealer bond will range from $100 to 10% of the bond amount. Multi year dealer bond options are available and can help save money and time.  Below are some of the current low rates you may qualify for in their respective state.

ARIZONA Dealer Bond Price:  100k Bond / 1 year  $675.00 | 2 year  $1181.00

FLORIDA Dealer Bond Price:  25K Bond / 1 year $188.00 | 2 year $329.00

UTAH Dealer Bond Price:  75k Bond / 1 year  $383.00 | 2 year  $670.25

GEORGIA Dealer Bond Price:  35k Bond / 1 year $175.00 | 2 year $350.00

All 50 states are available!   Apply today and save money on your dealer bond--->

What is a dealer surety bond?

It's a type of license and permit bond that has 3 parties involved.  The parties are the principal (used car dealer), the obligee(typically the DMV), and the surety company.  Each state has a specific bond penalty requirement.  For example Florida dealer bonds are $25,000 and expire every April 30th. Utah dealer bonds are $75,000 and expire annually, Texas dealer bonds are $25,000 and expire at the end of each license month every other year.

What does the dealer surety bond cover?

Dealer bonds cover claims typically arising out of the dealer or a representative of the dealership not complying with rules or laws, and regulations of the trade. 

Common bond claims arise from used car dealers not:​

  • disclosing brands on titles correctly when selling a vehicle

  • not paying an auction after winning a bid

  • failing to register or title vehicles after sale

What is Garage Liability Insurance?

Garage Liability insurance is a specific type of insurance policy built for used car dealers, repair shops, wholesalers, and others in the auto industry.  Each state has specific requirements.  For example, Florida used car dealers are required to have a minimum $25,000 in liability for auto and premises as well as $10,000 in personal injury protection.  Other states have different requirements and limits for dealers to get licensed but all will have similarities such as how many dealer tags will be insured, who will be listed as permissible drivers, and what the driving radius allowed will be.

How much will garage liability coverage cost?

Garage Liability Insurance varies in cost depending on location, number of dealer tags, number of employees, driving record, and other factors.  In most state there is a minimum premium for garage policies of $1,000.  However, that is at the bare minimum required limits. Higher limits are available and recommended and of course will cost more.  The average policy for a start up is around $2,500(which can be paid in full or monthly).  The average premium for a used car dealer that has been in business for a few years and has a couple employees is closer to $4,000 annually.  You can add other coverage's to the liability policy such as:

Dealers Open Lot: to cover theft, fire, and vandalism and more 

Garage Keepers: for repair shops and vehicles left in your custody or control

Business Property: coverage for items in the office or shop

What do you need to get a quote for garage liability insurance?

At the minimum you will need the following:

  • Company name and physical address of the business

  • Name, age, and driver license number for the owners and employees

  • Decide how many dealer tags(hard plates) you will need to insure

  • Know whether you want your state minimum or higher liability limits and other coverage's 

Other Details to Consider.....

1. Make sure your location is acceptable and you have an insurance quote before signing a lease for the location

2. Check your potential employees driving history.  Clean records cost way less in annual premium on your policy

3. How are you going to operate you business ( your business plan).  This will come into play on the underwriting questions

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