Surety bonds • Virginia
Virginia Auto Dealer Bond: $50,000 Requirement and the Recovery Fund
Applicants for an original Virginia motor vehicle dealer license must hold a $50,000 surety bond and pay a $350 annual Motor Vehicle Transaction Recovery Fund fee for their first three years. Dealers with no claims against their bond or the Fund for three years then pay the regular fee and no longer need the bond, or may elect continuous bonding instead of the Fund.
This guide covers the bond, the Recovery Fund, exemptions, and costs. Blake Insurance Group is an independent agency, and a licensed agent can help with your bond and dealer insurance.
Request a Virginia dealer bond quote
Tell us whether you are a new or renewing dealer, and a licensed agent will follow up. Submitting the form does not bind coverage.
If the form does not load, call 888-387-3687, Monday through Friday, 9:00 to 5:00, or email info@blakeinsurancegroup.com.
Prefer to quote online yourself?
Get a surety bond quote online, without waiting for a call back. Many license and permit bonds can be issued the same day.
Get a surety bond quote through Propeller →License, permit, contract, and commercial bonds through our Propeller portal.
Sponsored. Each link opens the partner’s website in a new tab, where its terms and privacy policy apply. Blake Insurance Group may be compensated if you buy.
The bond and the Recovery Fund
Under Va. Code § 46.2-1527.1, applicants for an original dealer license pay a $350 annual Motor Vehicle Transaction Recovery Fund fee, instead of the regular $100 fee, for three years and must hold a $50,000 bond for the same period. Renewing dealers with no claims against their bond or the Fund for three consecutive years pay the regular fee and no longer need the $50,000 bond.
Continuous bonding option
Dealers who qualify may elect continuous bonding under Article 3.2 of Chapter 15 instead of participating in the Recovery Fund, which exempts them from Fund fees (Va. Code § 46.2-1527.1).
Exemptions
The section does not apply to manufactured home dealers, certain nonprofits, or recreational vehicle, trailer, and motorcycle dealers licensed before July 1, 2015 (Va. Code § 46.2-1527.1).
How much a Virginia dealer bond costs
SuretyBonds.com lists the $50,000 Virginia dealer bond starting at about $450 to $500 a year, with qualified applicants often paying no more than 3% of the bond amount. Rates depend on credit.
Bond vs. dealer insurance
The bond protects buyers, not the dealership. Dealers usually also carry garage liability, dealer’s open lot, and commercial auto insurance. See our surety bond vs. insurance guide.
Virginia auto dealer bond FAQs
How much is a Virginia dealer bond?
$50,000 for the first three years of licensing. Published prices start around $450 to $500 a year.
What is the Virginia Motor Vehicle Transaction Recovery Fund fee?
New dealers pay $350 a year for three years instead of the regular $100 fee.
Do I need the bond after three years?
Not if you have had no claims against your bond or the Fund for three consecutive years.
Related guides
- Virginia surety bonds
- North Carolina auto dealer bond
- Ohio 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
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 Virginia dealer bond, or start a bond quote online with our partner.
