Car Dealer Bonds

Need Help getting garage insurance or a bond?

For a free quote, please call Cameron M. Harris & Company at 800-476-8728 and one of their representatives will be glad to assist you.

Garage Liability: A necessary coverage for automobile dealers. It provides you protection against the liability arising out of bodily injury of property damage at your premises, operations, of work performed. It can include optional coverages such as errors and omissions protection (involving Truth in Lending, Odometer, Agent, and Security Interest), Dealers Open Lot, Garage Keepers Legal Liability, and other special needs.Workers’ Compensation: Coverage designed to help you meet state mandated coverage requirements at attractive rates. This insurance protects employees who are injured on the job as the result of an accident.24-Hour Accident Protection: When Workers’ Compensation is not required, but you still want partner/employee protection, this inexpensive alternative is available.

Inventory Protection: MAFS has put together Floor Plan Protection for financed vehicles that provides coverage for physical damage including theft, collision, vandalism, hail, flood and other coverages normally associated with Dealers Open Lot coverages. The monthly premium for this coverage is based upon your outstanding balance on financed vehicles. This coverage is similar to the Floor Plan coverages offered to franchised dealers through their factory finance source. Umbrella Coverage: Offers higher limits in million dollar increments to protect the assets of your business. Dealer Bond: Helps you meet yet another state mandated coverage requirement in a cost effective manner.

Acordia Acordia, Inc., a Wells Fargo company, provides a wide range of financial and insurance products to NIADA members and their employees including: health, life, short/long term disability, dental/vision, long term care, college funding programs, retirement plans, garage liability, dealer physical damage, general liability, property, dealer bonds and many more coverages. For more information call Tracy or Cheryl McManamon toll free at 1-888-902-5333

Old Republic Surety Company

For auto dealer bonds and insurance in CA

NOTE: Where possible, I listed each states Independent Auto Dealers Assocation. They can usually help with bonding and liscensing concerns.

A $5,000 Surety Bond or a net worth statement for $25,000 or more is required. Dismantlers must present a bond showing a net worth of no less than $100,000.

$50,000 bond required; $3,000 for motorcycle dealers.

Surety bond of not more than $50,000 for each type of license for each county where dealer has established business; required for each location.

Arizona IADA
5517 N. Black Canyon Hwy.
Phoenix, AZ 85015

Franchise dealers must post a $25,000 bond with the Arkansas Motor Vehicle Commission to obtain a license. Used car dealers must post $25,000 bond with the State Police.

$50,000 bond required.

A $30,000 bond must be posted upon application for license.

Required; $5,000 for repairers and limited repairers; $20,000 for new and used vehicle dealers. Submitted in the name of the licensee prior to license issuance.

There are no bond requirements for dealers.

District of Columbia
A $10,000 bond is required; filed with the Department of Consumer Regulatory Affairs.

All motor vehicle and mobile home dealers are required to file a $25,000 Surety Bond. An irrevocable letter of credit may be substituted for a motor vehicle dealer’s bond. Recreational vehicle dealers require a $10,000 bond. For more than 4 additional lots, MH dealers require $50,000 bond, and RV dealers require $20,000 bond.

A $20,000 bond is required of all vehicle dealers.


Bond is not required, however, a $50,000 line of credit from a financial institution is required.

Greg Le Lesch, Secretary/Treasurer
1001 Ahua Street
Honolulu, HI 96819

A $10,000 bond is required for motorcycle, ATV and snow machine dealers; $20,000 for all others.

Douglas Gaskell, Executive Director
Idaho IADA
813 N. Mitchell
Boise, ID 83704-8161

$20,000 for 36 months.

Bond is not required.

Debbie Andersen, Executive Director
Indiana IADA
PO Box 1393
Crown Point, IN 46308

$50,000 Surety Bond must be filed with the Department of Transpiration.

$5,000 to $20,000 is optional.

Kansas IADA
529 Humboldt, Suite K
Manhattan, KS 66502-6073

$15,000 may be required.

A $20,000 bond for new vehicle dealers; $10,000 for used vehicle dealers.

Louisiana IADA
7440 Exchange Place
Baton Rouge, LA 70806-1531

Required for all dealers except light trailer and light boat trailer dealers. Bond amount is established by the number of vehicles sold by the dealership:

Vehicles Sold Bond Limits Vehicles Sold Bond Limits
0-50 $5,000 151-200 $20,000
51-100 $10,000 201 and over $25,000
101-150 $15,000

Based upon sales volume, surety is required for all dealers.

None required

$10,000 bond required.

$50,000 must be filed by all dealers; $5,000 for boat, snowmobile, trailer and motorized bicycle dealers.

A $15,000 Designated Agent’s Surety Bond is required for all licensed dealers. Filed with the application for a dealer’s license.

Mississippi IADA
PO Box 1081
Ridgeland, MS 39158-1081

$25,000 Corporate Surety Bond.

MADA Dealer Bond Service
Franchised and used car dealers may secure their $25,000 dealer bond through MADA. This bond is required by law and must be submitted with your application for dealer’s license.Check it Out

Franchised dealers, used car dealers, recreational vehicle dealers, auto auctions, wholesalers and trailer dealers who sell mobile homes, house trailers and commercial trailers exceeding 6,000 lbs. GVW are required to post $25,000 bond. Wholesaler and trailer dealers selling trailers under 6,000 lbs. GVW and motorcycle dealers must post $10,000 bond.

Montana IADA
PO Box 1264
Miles City, MT 59301

$25,000 bond is required.

Nebraska IADA
PO Box 29107
Lincoln, NE 68529-0107

A $50,000 Surety Bond is required.

New Hampshire
A $20,000 to $10,000 depreciating bond, or a $1000,000 blanket bond through the New Hampshire Automobile Dealers Association. The two dealer categories are Bonded and Licensed. Bonded dealers are not issued dealer plates.

New Jersey
No bond is required.

New Mexico
A $20,000 corporate Surety Bond is required for auto dealers, salvage dealers, manufacturers, mobile home dealers and motorcycle dealers. A $12,500 bond is required for motorcycle dealers; no bond for boat dealers.

New Mexico IADA
608 Chama Street, NE
Albuquerque, NM 87108

New York
Bond is required

120 Washington Avenue
Albany, NY 12210

North Carolina
$25,000 indemnity bond

North Dakota
All motor vehicle dealers are required to maintain a $25,000 Surety Bond with the department. All mobile home trailer and motorcycle dealers must maintain $10,000 surety bond.

Not required

Automobile Dealers Alliance of Ohio
7870 Olentangy River Blvd., Suite 107
Columbus, OH 43235-1319

$10,000 bond is required on new car dealers, $25,000 on wholesale dealers, and $30,000 on manufactured home dealers.

Effective March 1, 2000, insurance is increased to $20,000 for each year the certificate is valid; effective March 1, 2001, requirement is increased to $25,000 for each year the certificate is valid.

A $20,000 bond is required.

Rhode Island
All dealers must post a $15,000 Surety Bond with the Dealers License Commission.

South Carolina
A $15,000 surety bond is required.

South Dakota
Required. Amounts are: $10,000 bond for new and used vehicle dealers; $2,000 for motorcycle dealer; $10,000 for trailer dealers (required only for dealers who sell trailers weighing over 2,000 lbs.); $10,000 for mobile home dealers; $2,000 for snowmobile dealers.

Bond is filed with Motor Vehicle Dealer Commission.

A $25,000 surety is required for motor vehicle, motorcycle, wholesale, and wholesale auction dealers for the licensed period unless the dealer is a franchised dealer or trailer dealer.

Required. A $20,000 corporate surety bond for new or used vehicle dealers. A $1,000 corporate surety bond for new or used motorcycle or small trailer (750 lbs. unladen weight or less) dealers.

Bond requirements. New and used car dealers must provide bond based on number of sales and must have real estate value of not less than $5,000 or more than $15,000.

Original licensees are required to furnish $25,000 bond for the first three years in business. Bond required until dealership has three consecutive years without a claim against the bond or fund.

$15,000 for motor vehicle dealers, $30,000 for mobile home/travel trailer dealers ($15,000 for travel trailer only). $5,000 for miscellaneous dealers.

Giving Washington State Dealers a Voice

West Virginia
$2,000 bond is required for all dealers. Renewal licenses require a new Dealer Surety Bond (Form MV-126-DS-P).

$5,000 to $100,000 bond may be required, if there is reason to doubt the financial responsibility or compliance of dealership.

A $10,000 Dealer Bond is required at the time of application for a license.