Kansas Motor Vehicle Dealer Bond

Before Kansas licenses you as a car dealer, you post a $50,000 motor vehicle dealer bond. Turn it in to the Kansas Division of Vehicles. Most dealers set it up online.

Bond Amount
$50,000
Typical Premium
$300–$2,500/yr
Term
Continuous
Required By
Kansas Department of Revenue, Division of Vehicles
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What Is the Kansas Motor Vehicle Dealer Bond?

A Kansas motor vehicle dealer bond is a money guarantee. It protects the public, not you. If you break a dealer rule or fail to pass clear title, they can claim against it. The surety pays them, then you repay the surety.

The Kansas bond is set at $50,000.

Kansas raised this bond to $50,000 in 2022; some old state forms still show $30,000.

Who Needs This Bond in Kansas?

How to Get Bonded — Step by Step

  1. Apply for your dealer license.
  2. Get your bond here. We shop several sureties for your best rate.
  3. Send the bond to the Kansas Division of Vehicles.
  4. Once approved, get your license and start selling.

Renewal & Continuous Bond Coverage

The Kansas bond does not expire on a set date; it runs until canceled. Just keep paying the premium so your license never lapses.

Frequently Asked Questions

Did Kansas raise the dealer bond?

Yes. It went from $30,000 to $50,000 in 2022. Some old state forms still show $30,000 — the correct amount is $50,000.

Does the Kansas bond protect me?

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

How fast can I get bonded in Kansas?

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.

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Related: All Kansas 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.