What Is the Indiana Motor Vehicle Dealer Bond?
The Indiana motor vehicle dealer bond stands behind your dealership. If a buyer loses money from fraud or a title problem, they can file a claim. The surety covers it, and you repay the surety.
In Indiana, the bond is $25,000.
Who Needs This Bond in Indiana?
- Dealers who sell to the public in Indiana need the bond to be licensed.
- Wholesale and auction dealers are usually covered too.
- You keep the bond active each term.
How Much Will the Bond Cost?
Premium is credit-priced. Most dealers with clean credit pay $250–$500/yr:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $250 – $375 | 1% – 1.5% |
| Good Credit | $375 – $625 | 1.5% – 2.5% |
| Fair Credit | $625 – $875 | 2.5% – 3.5% |
| Credit Challenges | $875 – $1,000 | 3.5% – 4% |
| Past Credit Issues | $1,000 – $1,250+ | 4% – 5%+ |
How to Get Bonded — Step by Step
- Start your Indiana dealer license application.
- Buy your motor vehicle dealer bond here. Most quotes come back fast.
- Send the bond to the IN Secretary of State Auto Dealer Services Division.
- Get your license and start selling.
Renewal & Continuous Bond Coverage
Your Indiana dealer license runs on a set cycle (every year). Keep the bond current. A lapse can cost you your license.
Frequently Asked Questions
Does the Indiana bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. It is not insurance for you.
How fast can I get bonded in Indiana?
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. Your rate depends mostly on your credit.
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.
Ready to get your Indiana Motor Vehicle Dealer Bond?
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Start Your ApplicationRelated: All Indiana surety bonds · What is a surety bond? · How surety bond costs are calculated