Nebraska Motor Vehicle / Auto Dealer Bond Cost

While $50,000 might seem like a large amount to pay, in reality, you only need to pay a percentage of it to get bonded, which is called the bond annual premium. The surety company will look at several factors to determine your Nebraska motor vehicle dealer bond cost, most importantly, your credit score. Factors such as years licensed and years of industry experience will also play a factor in your dealer bond cost.

• If your credit score is above 650, you’ll likely have to pay between .75% and 2% of the bond amount.

• For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.

Nebraska Motor Vehicle / Auto Dealer License and Renewal

Who Needs a Nebraska Motor Vehicle Dealer Bond?

Under Nebraska law, the following license types are required to file a $50,000 Surety Bond with the Nebraska Motor Vehicle Industry Licensing Board:

• Combination Dealer – for new/used motor vehicles, motorcycles, and trailers

• Trailer-Only Dealer – for trailers only

• Motorcycle-Only Dealer – for motorcycles only

Under Nebraska law, the following license types are required to file a $100,000 Surety Bond with the Nebraska Motor Vehicle Industry Licensing Board:

• Auction Dealer – for conducting vehicle auctions

Whether you're selling cars, motorcycles, trailers—if you’re applying for one of these licenses, you need a dealer bond.

What Is a Nebraska Auto Dealer Bond?

A Motor Vehicle Dealer Bond is a three-party agreement:

Principal – The dealer
Obligee – Nebraska Motor Vehicle Industry Licensing Board
Surety – The insurance/bonding company that guarantees payment if the dealer violates laws

• If a valid claim is made (e.g., unpaid title fees, odometer fraud), the surety pays damages up to the bond amount.

• The dealer is responsible for repaying the surety for any claims paid.

How to Apply for a Nebraska Motor Vehicle Dealer License

To be licensed as a dealer or wholesaler in Nebraska, applicants must complete the following:

1. Choose license type

2. Register business (EIN & Nebraska tax ID)

3. Secure dealership location & signage

4. Collect zoning approval, photos, lease, franchise (if needed)

5. Get required bond and dealer liability insurance

6. Submit completed application

7. Schedule inspection, pay fee upon approval

8. Renew yearly before December 31

Required Garage Liability Insurance Coverage for Nebraska Dealers

In addition to the required $50,000 Nebraska Motor Vehicle Dealer Bond, all licensed dealers in Nebraska—whether retail, motorcycle or trailer— need to carry Garage Liability Insurance to protect their business operations. This coverage is required to obtain and maintain your Nebraska Motor Vehicle Dealer Licenses.

Here’s what your garage liability policy will need to include:

All Nebraska motor vehicle, trailer, and motorcycle dealers must submit a Certificate of Automobile Liability Insurance with their opening or renewal license applications. Key requirements include:

• Coverage must apply to "Any Auto", meaning all vehicles in your inventory.

• This certificate must come from an insurance company authorized to do business in Nebraska.

• The dealership’s exact legal or DBA name and address must appear on the certificate.

• If the dealership has employees, you must also include either:
  A Workers’ Compensation Insurance Certificate, or
  A signed Workers’ Compensation Waiver (if no employees are on staff)

Minimum Liability Coverage Limits

Nebraska state law requires minimum auto liability policy limits of:

• $25,000 per person (bodily injury)

• $50,000 per accident (bodily injury)

• $25,000 property damage
  

These limits may also be represented through a combined single limit (CSL) policy—e.g., $75,000 per accident or $150,000 aggregate—depending on your insurer’s policy structure.

Dealer-Plated Vehicle Requirements

For dealer-plated vehicles, proof of insurance is not required to remain in the vehicle (unlike customer vehicles), but your dealership must still have proper liability coverage in place.

Summary: Insurance Checklist for Nebraska Dealers

Coverage Type: Automobile liability insurance covering "any auto" in inventory

Minimum Limits: $25,000 per person / $50,000 per accident / $25,000 property damage

Certification Required: Certificate of Liability Insurance and Workers’ Comp or waiver

Must Match Dealer Info: Policy must list exact dealership legal or DBA name and address

Dealer-Plated Vehicles: Do not require proof of insurance in vehicle

Need Help with Garage Liability Insurance?

At All American Bonds and Insurance, we specialize in insuring licensed auto and powersports dealers in Nebraska. Whether you're starting your first dealership or expanding operations, we’ll help you choose the right protection at a competitive rate.

✅ Fast quotes
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✅ Coverage that meets dealer board and lender requirements

📞 Call us at (844) 321-2663 or Get a Quote Now!