Surety bonds • California
California Auto Dealer Bond: $50,000 DMV Bond and Cost
California requires motor vehicle dealers to file a $50,000 surety bond with the DMV. Dealers who deal exclusively in motorcycles or all-terrain vehicles need $10,000. Published premiums for the $50,000 bond start around $500 a year for applicants with good credit.
This guide covers the bond amounts, what the bond protects, what affects price, and other dealer coverage. Blake Insurance Group is an independent agency, and a licensed agent can help you compare options.
Request a California dealer bond quote
Tell us your dealer type and whether this is a new license or a renewal, and a licensed agent will follow up. Submitting the form does not bind coverage.
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Get a surety bond quote online, without waiting for a call back. Many license and permit bonds can be issued the same day.
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California dealer bond amounts
| Dealer type | Bond amount |
|---|---|
| Motor vehicle dealer | $50,000 |
| Dealer exclusively in motorcycles or ATVs | $10,000 |
Amounts from Cal. Vehicle Code § 11710.
What the bond protects
Under Cal. Vehicle Code § 11710, the bond is conditioned on the dealer not committing fraud or fraudulent representations that cause a monetary loss to a purchaser, seller, financing agency, or governmental agency. If the surety pays a claim, the dealer must repay it.
How much a California dealer bond costs
| Bond | Published starting price |
|---|---|
| $50,000 dealer bond | From $500 a year |
| $10,000 motorcycle/ATV dealer bond | From $100 a year |
Prices published by SuretyBonds.com, which lists typical rates of about 1% to 5% of the bond amount based on credit. Multi-year terms may cost less.
What affects your price
- Personal credit of the owners.
- Industry experience and time in business.
- Business finances and any past bond claims.
Bond vs. dealer insurance
The bond protects customers and others, not the dealership. Dealers usually also need garage liability, dealer’s open lot coverage, and commercial auto insurance. See our surety bond vs. insurance guide.
California auto dealer bond FAQs
How much is a California dealer bond?
The bond amount is $50,000, or $10,000 for dealers selling only motorcycles or ATVs. Published premiums start around $500 a year for the $50,000 bond.
Who does the California dealer bond protect?
Purchasers, sellers, financing agencies, and government agencies harmed by the dealer’s fraud.
Can I get a California dealer bond with bad credit?
Often, yes, though rates are higher.
Related guides
- California surety bonds
- Texas auto dealer bond
- Arizona auto dealer bond
- Commercial auto insurance
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- License and permit bonds
- South Dakota auto dealer bond
- West Virginia auto dealer bond
- New Mexico auto dealer bond
- Nebraska auto dealer bond
- Kansas auto dealer bond
- Iowa auto dealer bond
- Oklahoma auto dealer bond
- South Carolina auto dealer bond
- Alabama auto dealer bond
- Tennessee auto dealer bond
- Washington auto dealer bond
- Michigan auto dealer bond
- Pennsylvania auto dealer bond
- New Jersey auto dealer bond
- Illinois auto dealer bond
- Georgia auto dealer bond
- Virginia auto dealer bond
- North Carolina auto dealer bond
- Ohio auto dealer bond
- New York auto dealer bond
- Florida auto dealer bond
Important information
Compensation. The link in the partner quote box near the top of this page is sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your dealership, and a licensed agent will help with your California dealer bond, or start a bond quote online with our partner.
