Surety bonds • North Carolina
North Carolina Auto Dealer Bond: $50,000 Requirement and Cost
North Carolina requires licensed motor vehicle dealers to file a $50,000 surety bond with the NCDMV, plus $25,000 in additional coverage for each additional location where vehicles are sold. The bond protects anyone harmed by the dealer’s fraud or violations of state dealer laws. Published prices start around $250 to $300 a year for the main location.
This guide covers the bond amounts, what the bond protects, cancellation rules, and costs. Blake Insurance Group is an independent agency, and a licensed agent can help with your bond and dealer insurance.
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Bond amounts
| Location | Bond amount |
|---|---|
| Main place of business | $50,000 |
| Each additional North Carolina location selling vehicles | Additional $25,000 |
Source: NCDMV dealer bond form (LT-409). Manufacturers, distributors, and wholesalers file on the same form.
What the bond protects
The bond protects any person harmed by fraud, fraudulent representation, or violations of Articles 12 and 15 of Chapter 20 of the North Carolina General Statutes by the dealer or its sales representatives acting within the scope of their employment (NCDMV dealer bond form (LT-409)). If the surety pays a claim, the dealer must repay it.
Cancellation and nonrenewal
- The surety may cancel only if the dealer stops operating or its license is denied, suspended, or revoked; the premium is unpaid; or the dealer made a material misrepresentation to obtain the bond.
- Cancellation requires 30 days’ written notice to the Commissioner of Motor Vehicles.
- For nonrenewal, the surety must notify the dealer and the Commissioner at least 30 days before the premium anniversary date.
Source: NCDMV dealer bond form (LT-409).
How much a North Carolina dealer bond costs
| Bond | Published starting price |
|---|---|
| $50,000 main location, used dealer | From $250 |
| $50,000 main location, new dealer | From $300 |
| $25,000 additional location | From $125 |
Prices published by SuretyBonds.com; final rates depend on credit and underwriting.
Bond vs. dealer insurance
North Carolina dealer license applications also require garage liability insurance (SuretyBonds.com). Most dealers also carry dealer’s open lot and commercial auto coverage. See our surety bond vs. insurance guide.
North Carolina auto dealer bond FAQs
How much is a North Carolina dealer bond?
$50,000 for the main location, plus $25,000 for each additional location. Published prices start around $250 to $300 a year.
Who does the North Carolina dealer bond protect?
Anyone harmed by the dealer’s fraud, fraudulent representations, or violations of state dealer laws.
How much notice must the surety give to cancel?
30 days’ written notice to the Commissioner of Motor Vehicles.
Related guides
- North Carolina surety bonds
- North Carolina bonded title
- Ohio auto dealer bond
- Florida 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
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 North Carolina dealer bond, or start a bond quote online with our partner.
