Louisiana Motor Vehicle Dealer Bond

Louisiana Motor Vehicle Dealer Bond

Motor vehicle dealers in Louisiana are required to have a surety bond as part of their licensing requirements. Auto Dealer Bonds are used by Louisiana as a tool to ensure financial stability and accountability for licensed vehicle dealers. 

There is no better partner than Jet Insurance Company when it comes to surety bonds. Get a quote in minutes and save on your bond!



Jet studies the car business to sniff out the shady shops that cause all of the claims, allowing us to lower bond prices for Louisiana dealers.

Other bond providers just run a generic credit check, which opens the floodgates causing quality dealers to unfairly subsidize the deadbeats with an inflated premium.

We think honest dealers with solid business practices should get to save on their bond.

There are over a dozen different license types regulated by two different commissions: 

  1. The Louisiana Motor Vehicle Commission
  2. The Louisiana Used Motor Vehicle Commission

Jet’s expertise and underwriting philosophy provide you with the quickest service at great rates no matter what type of bond you need.

How Much Does a Lousiana Auto Dealer Bond Cost?

Jet writes the $50,000 Used Dealer Bond for as low as $392 for a 2-year term, or you can pay just $22 per month. By denying coverage to the bad apples in the industry, we're able to offer the lowest rates on the market to honest dealers.

Prices start at $11 monthly or $196 for 2 years for brokers, recreational, specialty, and new dealers needing the $20,000 bond. The price you pay is based on your dealership's practices, the bond type and limit, your years in business and personal credit score (soft check).

Bond TypeLimitMonthly1-Year2-Year
Used Motor Vehicle Dealer$50,000$22NA$392
New Motor Vehicle Dealer$20,000$11$112$196
Recreational Product Dealer$20,000$11NA$196
Recreational Product Dealer - Used$10,000$10$100$175
Specialty Vehicle Dealer$20,000$11NA$196
Specialty Vehicle Dealer - Used$10,000$10$100$175
Broker$20,000$11NA$196
Louisiana Vehicle Dealer Bond Costs

The Used Motor Vehicle Commission requires Auctions, Daily Rental, and Rent with the Option to Purchase to maintain a $50,000 surety bond which starts at $22 monthly or $392 for 2 years. The Louisiana Motor Vehicle Commission requires facilities, warranty, repair centers, and remanufactured, reconditioned, or rebuilt wholesalers to also have a surety bond. Below you can see where those bond prices start for preferred tier applicants.

Bond TypeLimitMonthly1-Year2-Year
Auction$50,000$28NA$392
Daily Rental$50,000$28NA$392
Rent with the Option to Purchase$50,000$28NA$392
Dealer Used Motor Vehicle Facility$10,000$10$100$175
Lessor Used Motor Vehicle Facility$10,000$10$100$175
Lessor Used Motor Vehicle Facility (Additional Location)$5,000$10$100$175
Satellite Warranty and Repair Center$20,000$11$112$196
Remanufactured/Reconditioned/Rebuilt Wholesaler$1,000,000***
*Underwriter Review Required
Other Louisiana Vehicle Surety Bonds Pricing

What is the Monthly Payment Option?

We give you the option to purchase your bond on a monthly subscription basis, starting at just $22. There is no down payment required.

We are the only surety company willing and able to allow you to pay for the 2-year bond month-to-month.

Unlike other providers who require you to pay the full two years upfront and won't refund the premium if you need to cancel midterm, with Jet you can cancel anytime with a simple chat, email or phone call.

Louisiana Auto Dealer Bond

Why Does Louisiana Require These Surety Bonds?

The Louisiana State Legislature wants dealers and other vehicle-related businesses to operate with integrity and financial stability. The bond requirement assists in this goal. You can see the details by referring to Louisiana Revised Statute Title 32 Chapter 4 for bonds under the Used Motor Vehicle Commission and Louisiana Revised Statute Title 32 Chapter 6 for bonds with the Motor Vehicle Commission. The Legislature creates the laws that put the Commissions into existence, the license requirements they oversee, and the surety bond requirements.

The surety bond provides a gap in coverage that is not available in all other forms of typical business insurance. Bonds protect the public and the commissions from financial damage caused by the licensee. 

And this is not the accidental kind of damage, but negligent or fraudulent behavior, such as failure to transfer title, pay sales tax, pay registration fees, etc. The public or the commission will come after the dealer for damages. However, the dealer will choose not to or cannot make restitution. The surety bond is the guarantee a third-party financial institution (Jet) will make restitution.

How Does My Bond Get On File With the Commission?

Louisiana Motor Vehicle Commission

This Commission is based out of Metairie and what they may be lacking on their website, is more than made up for by their service. They oversee many different license types and below are licenses that need a surety bond:

All bonds (except the Remanufactured license bond) can be purchased in a minute or two online. Once the bond is purchased, Jet will send the original bond to the licensee for a counter signature. You can request overnight delivery during checkout. 

New licensees must file the surety bond with their application packet. Current licensees can file a bond purchased with a new surety company upon the license renewal with their other license renewal paperwork. If the bond is just a renewal with Jet, a bond continuation form will be sent to you to be filed, much like an original bond form.

This Commission can be found at the following address:

Louisiana Motor Vehicle Commission
3017 Kingman St
Metairie, LA 70002

Louisiana Used Motor Vehicle Commission

This Commission is based out of Baton Rouge, and while it may deal with less license types than the other commission, used dealers make up more than that in how interesting they can be! The Used Commission has oversight over the following licenses with bonding needs:

Same as dealing with the other commission, licensees will receive the original bond form with a seal from Jet in the mail after purchase (overnight available). This bond form must be filed with the application or renewal packet. If the bond is renewed Jet will send the continuation certificate for filing. Renewal is simply done by making on-time payments whether annual or continued monthly payments.

The Used Commission is at the address below:

Louisiana Used Motor Vehicle Commission
3132 Valley Creek Drive
Baton Rouge, LA 70808

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When and How to Renew Your Louisiana Motor Vehicle Dealer Bond

“How a bond is renewed” is the easy part, so let’s start there. Jet will send you a reminder prior to the bond’s expiration date. All you need to do is make payment over the phone at (225) 465-8981, online in a link we email to you, or in the reply envelope sent to you via standard mail.

Those on monthly payments just need to keep making payments on time. Jet will send you the continuation certificate well before the time you need to file the form to the Commission. The schedule on when licenses renew and consequently replacement bonds or continuation certificates are filed is below for each Commission. There are key differences, so be sure to read up on your specific bond’s Commission.

Used Motor Vehicle Commission
To sum it up, your license with the Used Motor Vehicle Commission is set to renew every two years in December. But depending on which District your Parish is in you may have to renew in an even or an odd year. Further below illustrates which Parish is in which District. This is for the Used, Auction, and Rental Dealer licenses.

Renews in Even Numbered Years (Dec. 31 2022, Dec. 31 2024…)

Renews in Odd Numbered Years (Dec. 31 2023, Dec. 31 2025…)

Motor Vehicle Commission

You will notice the districts and renewal dates are different for this commission, but the idea is the same. Your license is renewed and a bond is filed every two years depending on what parish you are in. This is for the New, Specialty, Recreational, Facility, Warranty, Repair, Broker, and Remanufactured Licenses.

Renews in Even Numbered Years

Renews in Odd Numbered Years

Good News and Bad News

Good news: if you sell less than five cars a year then you do not need to be a licensed dealer.

Bad news: each location needs to have a surety bond, meaning you cannot have all your locations under the hood of one surety bond.

Good news: with Jet, you deal directly with the surety carrier without middleman brokers and agents—our service is quicker and there are never additional fees to the premium.

Bad news: licensees need to have proof of a Garage Liability Policy. But dealers should probably have one anyway to protect against risk to property and people.

Learn More About Canceling Your Bond and Dealer Bond Claims

How to Cancel My Bond

See the details surrounding cancellation of your bond.

Bond Claim Process

Those in the vehicle industry need to be aware of claim causes and procedures.

Louisiana Auto Dealer Bond Form Example

Louisiana Motor Vehicle Dealer Bond Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: