Louisiana Motor Vehicle Dealer Bond

To open a dealership in Louisiana, you need a motor vehicle dealer bond. The amount depends on your sales volume. It goes to the Louisiana Motor Vehicle Commission. It is a standard license step.

Bond Amount
$20,000–$50,000 (by dealer type)
Typical Premium
$200–$2,500/yr
Term
1 Year
Required By
LA Motor Vehicle Commission / Used Motor Vehicle Commission
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What Is the Louisiana Motor Vehicle Dealer Bond?

The Louisiana 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 pay that money back.

What you post in Louisiana:

New-car dealers register with the Motor Vehicle Commission; used-car dealers register with the Used Motor Vehicle Commission.

Who Needs This Bond in Louisiana?

How to Get Bonded — Step by Step

  1. Start your Louisiana dealer license application.
  2. Get your bond here. We shop several sureties for your best rate.
  3. File the bond to the Louisiana Motor Vehicle Commission.
  4. Once approved, get your license and start selling.

Renewal & Continuous Bond Coverage

Louisiana dealer licenses come up for renewal every year. Your bond must stay in force the whole time. Start before it expires so you do not lose your license.

Frequently Asked Questions

Does Louisiana have two dealer commissions?

Yes. New-car dealers register with the Motor Vehicle Commission and post $20,000. Used-car dealers register with the Used Motor Vehicle Commission and post $50,000.

Does the Louisiana 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 Louisiana?

Most quotes come back fast, 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.

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 Louisiana 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.