Surety bonds • Tennessee
Tennessee Auto Dealer Bond: $50,000 Requirement and Cost
The Tennessee Motor Vehicle Commission requires dealers to submit a $50,000 corporate surety bond covering two consecutive years, along with at least $300,000 per occurrence of liability insurance. Published prices for the bond start around $132 a year.
This guide covers the bond, insurance, fees, 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 and license requirements
| Requirement | Detail |
|---|---|
| Surety bond | $50,000 corporate surety bond, signed by the principal owner(s) |
| Bond term | Two consecutive years, starting in the month the license is expected to issue |
| Liability insurance | Garage liability or any-auto coverage, at least $300,000 per occurrence |
| Application fee | $600, plus $600 per line make for franchise dealers |
Source: Tennessee Motor Vehicle Commission. The bond must match the business name and address and include a power of attorney.
How much a Tennessee dealer bond costs
| Term | Published price |
|---|---|
| Per year | From $132 |
| Two-year term | From $263 |
Prices published by SuretyBonds.com; rates depend on credit.
Bond vs. dealer insurance
The bond protects customers, not the dealership. Dealers also need garage liability and often carry dealer’s open lot and commercial auto insurance. See our surety bond vs. insurance guide.
Tennessee auto dealer bond FAQs
How much is a Tennessee dealer bond?
$50,000. Published prices start around $132 a year.
How long is a Tennessee dealer bond term?
Two consecutive years, matching the license period.
What insurance does a Tennessee dealer need?
Liability coverage of at least $300,000 per occurrence.
Related guides
- Tennessee surety bonds
- Georgia auto dealer bond
- North Carolina 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
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 Tennessee dealer bond, or start a bond quote online with our partner.
