New Requirements For Texas Dealers go into Effect July 1

Texas House Bill 718 requires all motor vehicle dealers operating in the state to issue metal plates starting on July 1, 2025, eliminating the use of temporary paper tags. The bill was enacted to stop the epidemic of fraudulent temporary tags plaguing the state. Dealers must use webDEALER to electronically process all title and registration applications. Additionally, depending on the county you are operating in, you may need to purchase and maintain a $100,000 surety bond (in addition to the $50,000 bond required for used dealers).

In this article, we break down what the new requirements implemented as a result of House Bill 718 mean for your dealership, and explain how to obtain the requisite $100,000 License Plate and Registration bond .

What's changed?

Dealers that do not have access to a webDEALER account by July 1 will be unable to sell motor vehicles. To create a webDEALER account, coordinate with your county tax assessor/collector’s office. You will also need to attend two, four-hour online or in-person training sessions before being granted an account. Register for a training session conducted by the DMV here.

Certain counties also require dealers that store license plates and registration stickers on their premises to purchase and maintain a $100,000 surety bond. The bond protects the county if a dealer misuses these plates/stickers and/or fails to pay all required taxes and fees. Your county tax assessor’s office will notify you if you are required to purchase the $100,000 bond.

You can obtain your $100,000 bond with Jet for as low as $750 per year (or you can pay just $75 per month) by completing the below application.



Used dealers in need of the $50,000 license bond can apply online here.

Metal Plates

In lieu of temporary tags, dealers will be required to issue metal plates for all motor vehicles at the time of sale. That means that dealers will no longer be able to issue the following tags from their eTAG system:

Buyer Tags
Internet Down Tags
Vehicle Specific Tags
Agent Specific Tags

Instead, the state has created the following limited-use metal plates to be used as needed:

Buyer Provisional Plate - To be used if the dealer does not have the required plate type in their inventory
Dealer Temporary Plate - Used by the dealership for business purposes (test drives, loaner vehicles or vehicle transport)
Out-of-State Buyer Plate - Used for vehicles sold to out-of-state buyers
Temporary Registration Plate - Used for temporary registration in replacement of one-trip and 30-day permits (provided by county tax offices and TxDMV regional service centers)

The DMV has published an overview of the new metal plate requirements, which can be accessed at the DMV Website.

Plate Storage and Distribution

All dealers will be allocated general-use license plates that will be provided to a vehicle at the time of sale. Dealers must store these plates in either a locked room, closet, or a safe/steel cabinet bolted to the floor or wall. Whenever a consumer sells or trades in a vehicle to a dealer, the dealer must store that vehicle’s general use plate and assign it to the next person who purchases the vehicle. These new processes put the onus of issuing plates to buyers on the dealer themselves, as opposed to the county in which the vehicle is purchased.

Why it Matters

The Texas Legislature determined it was necessary to eliminate temporary paper tags to prevent criminals from abusing this system to commit crimes and evade law enforcement. Unfortunately, these changes primarily affect dealers such as yourself who are now responsible for storing and issuing metal plates and obtaining additional bond coverage.

At Jet, we make obtaining the $100,000 Texas License Plate and Registration Bond easy. Our underwriting weeds out the small percent of bad apples that cause all claims, ensuring that honest dealers don’t have to subsidize their competition with inflated premiums. We believe trustworthy dealers with solid practices should pay less for their surety bond.

If you need a bond, click the below button and fill out our online application or give our dedicated dealer department a call at (855) 427-9898.

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Meet the Dealer Team

Tim Rotondi
Head of Dealer Department

Contact me at [email protected]

Tim Rotondi is the Head of the Dealer Department for Jet Insurance Company. Tim manages the marketing strategy for the unit, develops underwriting processes and assists dealers in obtaining their bonds.

Derek Nicolas
Head of New Business

Contact me at [email protected]

Derek Nicolas is the Head of New Business for Jet's Dealer Department. Derek oversees underwriting new bond submissions and assists with claims handling.

Dan Golden
Head of Renewals

Contact me at [email protected]

Daniel Golden is the Head of Renewals for Jet's dealer team. Dan ensures dealers' bond renewals are quoted on time and is responsible for following up on outstanding quotes.

Caleb Speed
Underwriter

Contact me at [email protected]

Caleb Speed is an underwriter for the dealer team. Caleb reviews new submissions and assists with renewal and follow up efforts.

Notary Bond Application:

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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).

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Employee Dishonesty Bond Application:

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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).

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Contract Bond Application:

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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:

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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: