Alabama Auto Dealer Bonds2019-08-08T17:20:29+00:00

Motor Vehicle Dealer Bonds – Alabama

Surety bonds are one of the requirements put in place by the Alabama Department of Revenue, Motor Vehicle Division for licensed auto dealers. By obtaining the $25,000 bond the dealer is agreeing to act ethically when conducting business. The Let’s Roll button below will lead you into the quick bond application.

Let’s Roll!

Once the application is submitted, an agent will prepare the bond quote which will be delivered via a phone call and a link sent to the email provided. The link allows the dealer to purchase the bond directly online.

alabama dealer bond

Cost of a Motor Vehicle Bond.

The actual cost of a bond depends on years in business, credit score, and other factors. Jet searches for the best price for you by checking multiple insurance companies. A motor vehicle bond could cost as low as $12 per month or $125 per year.

Price Tier* Motor Vehicle Dealer Bond
Monthly | Annual
Preferred     $12 | $125
Standard      $21 | $250
Credit Repair     $47 | $500

*The pricing tiers reflected above are not the only available rates. These rates are subject to change at any time and are not a guarantee, as pricing is based on dealership owner’s personal credit, years in business, and other factors.

Which Bonds Are Available in Alabama?

A motor vehicle surety bond in the State of Alabama is in the amount of $25,000 for all dealers. This includes motorcycle, trailer, and wholesale dealers, as well as rebuilders.

Another auto-related bond is the motor vehicle liability bond. This bond can be used in place of the regular motor vehicle liability insurance requirements. As proof of the validity of the bond, a motor vehicle liability bond certificate is issued. The amount of the bond must match or exceed motor vehicle liability insurance requirements.

A title surety bond may be issued to establish ownership of a vehicle or manufactured home when the vehicle didn’t have satisfactory ownership. To receive a bond, an applicant needs to complete an online request for a certificate of title under a surety bond. Once the request is approved, a certificate of title surety bond must be completed by the applicant and the insurance company providing the surety bond. The amount of the bond depends on the type of vehicle and the age of the vehicle. The applicant will receive a title under the coverage of a three-year title surety bond.

Click the apply now button below to fill out the quick application for your bond quote.

Dealer Bond Application for Alabama
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$25,000 Motor Vehicle Dealer Bond

Motor Vehicle Dealers and Designated Agents.

All new and used dealers in Alabama must be designated agents for the Department of Revenue. The bonding requirement for a designated agent is also an amount of $25,000. Since auto dealers already have a bond in the same amount of coverage, their bond satisfies the designated agent bond.

Becoming a designated agent is simple. Once a dealer license is received, a designated agent packet must be filled out and submitted to the Department of Revenue. An online account in ALTS (Alabama Titling System) is needed, but before the account is activated, it is mandatory to attend a 6-hour course split between 2 sessions. Once the training is complete, the ALTS account will be valid within 3-5 business days and the dealer can submit title applications online.

Applying for a Motor Vehicle Dealer License on MVTRIP.

Alabama has completely digitized the dealer application process. Applicants must make an account in MVTRIP (Motor Vehicle Title Registration & Insurance Portal). Once registered, applicants can apply for a dealer license or renewal, a bid card, or an off-site license.

Dealer Actions That Could Lead to a Claim.

A dealer must adhere to standards set by the Code of Alabama. The following actions are prohibited and are valid cause for license revocation/suspension or claims against the bond.

• Evidence of fraud or misrepresentation of the dealership
• Tampering with the odometer of a motor vehicle
• Mismanaging records
• Neglect title assignment
• Purposefully handle stolen vehicles or parts
• Knowingly fail to comply with dealer codes as established by Alabama law