Illinois Motor Vehicle Dealer Bond

Illinois requires a $50,000 motor vehicle dealer bond before you can get a dealer license. It is filed with the Illinois Secretary of State. You can get it fast.

Bond Amount
$50,000
Typical Premium
$500–$2,500/yr
Term
Continuous (60-month minimum)
Required By
Illinois Secretary of State
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What Is the Illinois Motor Vehicle Dealer Bond?

Think of the Illinois motor vehicle dealer bond as a promise to your buyers and the state. Wrong a customer, and they can claim against the bond. The surety collects from you after.

How much bond you need in Illinois:

New dealers must keep the bond for at least five years (60 months) before it can be released.

Who Needs This Bond in Illinois?

How to Get Bonded — Step by Step

  1. Start your Illinois dealer license application.
  2. Buy your motor vehicle dealer bond here. We shop several sureties for your best rate.
  3. Send the bond to the Illinois Secretary of State.
  4. Get your license and start selling.

Renewal & Continuous Bond Coverage

This Illinois bond is continuous — it stays in force until canceled. New dealers must keep it for at least 60 months. Do not let it lapse.

Frequently Asked Questions

Why must the Illinois bond stay in place for 5 years?

New Illinois dealers must keep the bond active for at least 60 months (5 years) before it can be released.

Does the Illinois bond protect me?

No. The bond protects your customers and the state, not you. If a claim is paid, you pay the surety back. It is not insurance for you.

How fast can I get bonded in Illinois?

We shop several sureties for you, often within a day. Many bonds are issued the same day for good credit.

How much does the bond cost?

You pay a yearly premium — a small percent of the bond amount. Good credit means a lower rate.

How a Surety Bond Works

A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.

Diagram of how a surety bond works: the obligee requires the bond, the principal applies and signs an indemnity agreement, and the surety issues the bond; if the principal fails, the obligee files a claim, the surety investigates and may pay, and the principal reimburses the surety.

Ready to get your Illinois Motor Vehicle Dealer Bond?

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Related: All Illinois surety bonds · What is a surety bond? · How surety bond costs are calculated

Underwriting Disclosure. All surety bond applications are subject to underwriting review and approval by the issuing surety company. Quoted premiums are estimates only; final pricing is determined by individual underwriting factors, which may include personal and business credit history, financial statements, industry experience, and claims history. Many bonds qualify for instant online approval, while others may require additional documentation, financial review, or indemnitor signatures prior to issuance. SuretyBondly makes no representation, warranty, or guarantee of approval, eligibility, premium amount, bond form, or issuance timing. Bond amounts, forms, and requirements are governed by the applicable obligee and statutory authority and may change without notice. Information provided on this page is for general informational purposes only and does not constitute legal, financial, or tax advice.