Surety bonds • Texas
Texas Auto Dealer Bond (GDN): $50,000 Requirement and Cost
Texas requires a $50,000 motor vehicle dealer surety bond for a retail General Distinguishing Number (GDN) license in the motor vehicle and motorcycle categories. The bond must be valid for a two-year term that runs with the license. Published prices start around $375 for the two-year term for applicants with good credit.
This guide covers who needs the bond, TxDMV filing rules, what the bond protects, and what it costs. Blake Insurance Group is an independent agency, and a licensed agent can help you compare options.
Request a Texas dealer bond quote
Tell us your GDN type and whether this is a new license or a renewal, 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.
Who needs a Texas dealer bond
According to the TxDMV retail GDN checklist, retail GDN applicants must file the $50,000 Motor Vehicle Dealer’s Surety Bond, except for the non-motorized travel trailer and utility trailer/semi-trailer GDN types, which are exempt. Dealers selling new vehicles also need a separate franchised dealer license.
TxDMV bond rules
- Two-year term. The bond must be valid for a two-year term and runs with the license period.
- Exact business details. The bond must show the full business name and physical address, including any suite number.
- Signatures. Both the applicant and the surety’s representative must sign and date the bond, and a power of attorney must be included if one is attached.
Sources: TxDMV retail GDN checklist, TxDMV dealer bond form.
What the bond protects
Under the TxDMV dealer bond form, the bond protects people who do business with the dealer. A person who obtains a judgment against the dealer for damages and attorney’s fees from a covered act or omission may recover against the bond, up to its $50,000 face value. If the surety pays, the dealer must repay it.
How much a Texas dealer bond costs
SuretyBonds.com lists a minimum price of $375 for the two-year term and says most qualified applicants pay about 0.5% to 2% of the bond amount. Applicants with weaker credit pay more.
| Rate | Per year | Two-year term |
|---|---|---|
| 0.5% | $250 | $500 |
| 1% | $500 | $1,000 |
| 2% | $1,000 | $2,000 |
Simple percentages for illustration only, not quotes.
Bond vs. dealer insurance
The dealer bond protects customers, not the dealership. Dealers usually also need garage liability, dealer’s open lot coverage, and commercial auto insurance. See our surety bond vs. insurance guide.
Texas auto dealer bond FAQs
How much is a Texas dealer bond?
The bond amount is $50,000. Published prices start around $375 for the two-year term, and depend on credit.
How long is a Texas GDN bond valid?
It must be valid for a two-year term that runs with the license.
Do trailer dealers need a bond in Texas?
Non-motorized travel trailer and utility trailer/semi-trailer GDN types are exempt from the bond requirement.
Related guides
- Texas surety bonds
- Texas bonded title
- Arizona 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
- North Carolina auto dealer bond
- Ohio auto dealer bond
- New York auto dealer bond
- Florida auto dealer bond
- California 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 Texas dealer bond, or start a bond quote online with our partner.
