top of page


Parking Lot


Louisiana Motor Vehicle Dealer Bond

Anchor 1

Getting a Louisiana motor vehicle dealer bond is a key step to becoming a licensed car dealer in the state. The motor vehicle dealer bond serves as an extra guarantee that your dealership will follow all rules and regulations that govern motor vehicle dealers in the state of Louisiana.

Just like all surety bonds, the Louisiana motor vehicle dealer bond serves as protection for the general public, and not as insurance for your business. In case you don't follow the rules and your obligations under the bond, a claim can be made against you. If proven to be a legitimate claim, the penal sum of the bond is used to compensate the affected parties. The surety covers the costs of claims up front, which you’ll be required to reimburse in full. This means you should avoided having any claims, as they can cause serious harm to your business and finances.


Louisiana 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 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%.

Louisiana Motor Vehicle / Auto Dealer License and Renewal

Who is required to be licensed?

  • All Automotive Crushers

  • All Automotive Dismantlers & Parts Recyclers

  • All Automotive Auctions

  • All Automotive Salespersons

  • All Automotive Used Parts & Accessories dealers

  • All Additional Location, and Additional Adjacent Location Businesses 


What are the dealer license fees?

  • Used Dealers License  $400.00 2 years

  • Crusher License $400.00 2 years

  • Automotive Dismantler & Parts Recycling License $400.00 2 years

  • Rent with Option to Purchase License $400.00 2 years

  • Daily Rental License  $400.00 2 years

  • Auction License  $400.00 2 years

  • Used Parts & Accessories License  $400.00 2 years

  • Additional Location  $200.00 2 years

  • Additional Adjacent Location  $200.00 2 years

  • Salesperson License  $25.00 1 year 

What are the bonding requirements?

  • All licensees are required to submit a continuous bond in the amount of $50,000 to LUMVC.

  • The company name must read EXACTLY as it does on the application form, including your entity name and your DBA name.

  • Once the bonding company completes the bond, it must be signed by an owner, partner, corporate officer, or member on the front as “Principle”. This line can be found above the insurance agent’s signature on the face of the bond.

  • Be certain the notary signs and seals the bond

  • The bond company must attach a power of attorney to the bond if using an attorney-in-fact

  • All bonding documents must be originals or certified copies

What are the insurance requirements?

Garage Liability Insurance

  • Must submit an “Acord Certificate of Liability Insurance”.  

  • Certificate Holder must read: LUMVC, 3132 Valley Creek Drive, Baton Rouge, LA  70808 

  • List all insured salespersons.  

  • Should indicate no lapse in coverage (if so, fees will apply). 

  • Must identify correct coverage.

Renters Insurance (only for rent with the option to purchase and daily rental)

  • Must submit Certificate of Insurance  

  • Certificate Holder must read: LUMVC, 3132 Valley Creek Drive, Baton Rouge, LA  70808 

Hassle Free Guarantee Dealer Bond


  •  Once applications are submitted to this office, your applications will be processed and/or a send back letter requesting  additional documents will be sent if needed. Please make sure you provide a valid email address on all applications.  Communication and correspondence will be delivered by using this method.   

  • Checking the status of your renewals by contacting the office will delay the process. You can check the status by  visiting

Request a FREE Bond or Insurance Quote today!


Get in touch with us by choosing one of the options below:

One of our agents will contact you shortly
bottom of page