Surety bonds • Alabama
Alabama Auto Dealer Bond: $50,000 Requirement and Cost
The Alabama Department of Revenue requires all licensed motor vehicle dealers, including motorcycle and trailer dealers, wholesalers, and rebuilders, to file a continuous $50,000 surety bond. The same bond satisfies the designated agent bonding requirement. Published prices start around $350 a year.
This guide covers the bond, license fees, insurance, and cost. 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 continuous bond on ALDOR Form MVT 4-3 |
| Who needs it | New and used dealers, motorcycle and trailer dealers, wholesalers, rebuilders |
| Liability insurance | $25,000 / $50,000 / $25,000, or $75,000 combined single limit |
| Fees | $125 master license, $5 per additional location, $25 off-site sale license |
Sources: Alabama Department of Revenue (Ala. Code § 40-12-398), ALDOR Form MVT 4-3. Applications are filed online through MyDMV.
How much an Alabama dealer bond costs
Published prices for the $50,000 bond start around $350 a year, or about 1% of the bond amount for applicants with strong 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 also need the blanket liability policy above and often carry dealer’s open lot and commercial auto insurance. See our surety bond vs. insurance guide.
Alabama auto dealer bond FAQs
How much is an Alabama dealer bond?
$50,000. Published prices start around $350 a year.
Do Alabama wholesalers need a dealer bond?
Yes. Wholesalers and rebuilders file the same $50,000 bond.
Does the Alabama dealer bond expire?
It is a continuous bond that stays in force until canceled.
Related guides
- Alabama surety bonds
- Georgia auto dealer bond
- Tennessee 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
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 Alabama dealer bond, or start a bond quote online with our partner.
