Auto dealer surety bonds are required to obtain and maintain a dealer license, but many dealers don’t fully understand how they work. This FAQ answers common questions about dealer surety bond costs, credit checks, claims, renewals, and compliance requirements—helping dealers avoid delays, protect their license, and stay compliant with state regulations.

Auto dealers often switch surety bond providers to lower costs, avoid filing errors, and receive faster, more reliable service. Common reasons include better bond rates, quicker approvals, correct state filing, improved communication, and working with a surety bond specialist instead of a general insurance agent. Changes in credit, business structure, or poor past experiences also prompt dealers to switch.