Surety bonds • Iowa
Iowa Auto Dealer Bond: $75,000 Requirement and Cost
Iowa requires applicants for a motor vehicle dealer license to file a $75,000 surety bond with the Iowa DOT Motor Vehicle Division. The bond must give the division at least 30 days’ notice before cancellation, and published prices start around $375 a year.
This guide covers the bond, key rules, and cost. Blake Insurance Group is an independent agency, and a licensed agent can help with your bond and dealer insurance.
Published by Blake Insurance Group LLC · Reviewed November 2026
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The $75,000 bond
| Item | Detail |
|---|---|
| Bond amount | $75,000 for a motor vehicle dealer license |
| Cancellation | At least 30 days’ notice to the Motor Vehicle Division |
| Exception | Not required if already licensed as a towable RV dealer under the same name and location |
| Convictions | The division notifies the surety of dealer convictions for dealership law violations |
Source: Iowa Admin. Code 761—425.4 (Iowa Code § 322.4).
How much an Iowa dealer bond costs
Published prices for the $75,000 bond start around $375 a year, with rates from about 0.5% to 10% based on credit (SuretyBonds.com). Use our surety bond cost calculator for an estimate.
Bond vs. dealer insurance
The bond protects customers and the state, not the dealership. Dealers usually also carry garage liability, dealer’s open lot, and commercial auto insurance. See our surety bond vs. insurance guide.
Iowa auto dealer bond FAQs
How much is an Iowa dealer bond?
$75,000. Published prices start around $375 a year.
Who regulates Iowa auto dealers?
The Iowa DOT Motor Vehicle Division.
Can my Iowa dealer bond be canceled?
Yes, with at least 30 days’ notice to the Motor Vehicle Division.
Related guides
- Iowa surety bonds
- Illinois auto dealer bond
- Michigan 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
Important information
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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 Iowa dealer bond, or start a bond quote online with our partner.
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