Typical Premium
$250–$1,250/yr
Required By
IN Secretary of State Auto Dealer Services Division
What Is the Indiana Motor Vehicle Dealer Bond?
Indiana Code 9-32 requires a $25,000 dealer bond from every applicant for a dealer license. The bond is filed with the Auto Dealer Services Division and runs concurrently with the annual dealer license.
The bond protects:
- Retail buyers and lessees from financial loss caused by dealer violations of IC 9-32
- Lienholders for trade-in liens not satisfied
- The State of Indiana for unremitted sales tax
- Persons damaged by misrepresentation, odometer fraud, or undisclosed defects
Who Needs This Bond in Indiana?
- New vehicle dealers — franchised manufacturer dealers
- Used vehicle dealers
- Wholesale dealers
- Auctions
- Motorcycle, recreational vehicle, and watercraft dealers
Indiana also requires applicants to complete the Indiana Auto Dealer Education Seminar (12 hours) before the Auto Dealer Services Division will issue the license.
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
- Complete Indiana Auto Dealer Education Seminar (12 hours, state-approved provider).
- Apply for your bond using the form on this page.
- Compile zoning approval, lease, and required signage proof.
- Submit dealer license application via the Auto Dealer Services Division online portal.
- State investigator inspection of premises before license issuance.
Renewal & Continuous Bond Coverage
Indiana dealer bonds run annually. The Auto Dealer Services Division mails renewal notices 60 days before expiration. Lapsed bonds result in license suspension within 30 days; reinstatement may require completing the dealer seminar again.
Frequently Asked Questions
Is the Indiana dealer education seminar a one-time requirement?
Largely yes — first-time applicants must complete it. Renewal applicants may be required to complete a shorter continuing education unit. Verify current requirements with the Division.
Does the bond cover lease violations?
Yes. Lessees damaged by dealer violations of leasing disclosure requirements (IC 24-5) can claim against the bond.
What if I'm a wholesale-only dealer?
Same $25,000 bond. Indiana does not have a separate tier for wholesale-only operations. Claims for wholesale-only dealers typically come from other dealers, not consumers.
Will my license be suspended if my bond cancels?
Yes — the Division receives automatic notification from the surety. Your license will be flagged within 30 days, and dealer plates revoked if not reinstated.
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Related: All Indiana surety bonds ·
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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.