California Motor Vehicle Dealer Bond
$50,000 California Dealer Surety Bond
| Bond Amount Required | Bond Term | Annual Premium |
| $50,000 | 1 Year | $400 |
California motor vehicle dealers generally must file a $50,000 surety bond with the California Department of Motor Vehicles as part of the dealer licensing process. The standard requirement applies to most motor vehicle dealers and remanufacturers. Certain dealer classes, including motorcycle- or ATV-only dealers and qualifying low-volume wholesale-only dealers, may have a $10,000 requirement instead.
Cost of the California Motor Vehicle Dealer Bond
The cost of a California Motor Vehicle Dealer Bond starts at $400 annually for the required $50,000 bond. The final premium may vary based on underwriting. Apply online for your California Motor Vehicle Dealer Bond.
How the California Motor Vehicle Dealer Bond Works
California Vehicle Code § 11710 requires the dealer bond to be issued by an admitted surety insurer and conditions the bond on the dealer not practicing fraud or making fraudulent representations that cause monetary loss to purchasers, sellers, financing agencies, or governmental agencies.
The bond involves three parties:
- Principal: Licensed California motor vehicle dealer
- Obligee: California Department of Motor Vehicles / State of California
- Surety: Admitted surety insurer
Learn about the surety bond claim process for general information about claims and the principal's reimbursement obligations.
How to Get the California Motor Vehicle Dealer Bond
- Complete this short online application.
- Confirm that the standard $50,000 dealer bond applies to your California dealer license class.
- Complete underwriting and pay the applicable premium, starting at $400.
- Receive the bond documentation required for your California DMV dealer licensing process.
- Maintain the required bond coverage while the dealer license remains subject to the bond requirement.
Important Dealer-Class Exception
Do not describe $50,000 as the required amount for every California dealer. California Vehicle Code § 11710 provides a $10,000 amount for dealers dealing exclusively in motorcycles or all-terrain vehicles, and qualifying low-volume wholesale-only dealers may also fall under a reduced $10,000 requirement.
Secure Your California Motor Vehicle Dealer Bond
If the standard $50,000 requirement applies to your dealership, complete the online bond application to get started. You can also explore California surety bond options or call 855-215-2160 for assistance.