Texas Motor Vehicle Dealer Bond

Car dealers in Texas are required to carry a $25,000 motor vehicle dealer bond. Jet Insurance Services works with several insurance carriers approved by the Texas DMV and will work hard to deliver the best deal every time. Car dealer bonds are sent to you, the dealer, to be filed with your inspector along with the power of attorney.

In Texas, What Is the Cost of an Auto Dealer Bond?

Texas dealer bond prices are dependent on years in business and the dealership owner’s personal credit. Costs start at $200 for two years or $11 a month and always for the two-year required term.

Price Tier* Motor Vehicle Dealer Bond
Monthly | Annual
Preferred $12 | $125
Standard $21 | $250
Credit Repair $47 | $599
Motor Vehicle Dealer Bond
Price Tier
Monthly | Annual
$12 | $125
$21 | $250
Credit Repair
$47 | $599
*Prices shown are for a two-year bond term in TX and are based on several factors including, but not limited to, personal credit, license history, years in business, and active licensing and bonding. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.

What Is the Process of Applying For a Dealer Bond?

The application process can be done in under a minute. Click the button below that says apply now, follow the instructions, and receive your quick quote. The quote will be delivered via email with a link that allows you to purchase the bond directly.

Bond Applications for Texas

$25,000 Motor Vehicle Dealer Bond

Texas Motor Vehicle Dealer Bond Requirement

Used, wholesale, motorcycle, and independent mobility vehicle dealers are required by the Texas Department of Motor Vehicles to carry a $25,000 surety bond in order to maintain the GDN (general distinguishing number). Franchise and trailer dealers must have a GDN, but are not required to carry the surety bond.

The bond is meant to protect the public from damages caused by auto dealers; not reporting all vehicle sales or providing an invalid title are just two of the things the bond protects the public from.

Bonds are sold for two-year terms to coincide with the licensing period. The bond must be renewed alongside the license upon its expiration date.

What Happens If There Is a Dealer Bond Claim?

In the large state of Texas you cannot just file a claim on the bond. A judgement must first be obtained, then there can be a bond claim and subsequent payout on an texas auto dealer surety bond. The insurance company who wrote the bond can verify the validity of the claim, even after the judgement, and if it is valid pay up to the surety bond limit of $25,000.

It is a best practice for a dealer to respond to a claim. Unfortunately, it is too often a judgement will come against the dealer and the auto dealer will not respond. This will guarantee the dealer will lose the judgment and have a claim on the bond. Regrettably the motor vehicle dealer bond is not like insurance, with surety bonds the dealer is responsible to pay back the insurance company for losses as well as legal fees.