Not in Minnesota? Motor vehicle dealer bonds in other states

Minnesota motor vehicle dealer bonds.
$250 flat.

Also known as the Minnesota auto dealer bond or car dealer bond.

Minnesota requires every licensed motor vehicle dealer to file a $50,000 bond with Driver and Vehicle Services. Ours is $250 flat — set by our carrier's rate book, identical for every dealer. A quick soft credit check may apply; the bond is issued when you pay.

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Required for your MN dealer license — new applicants and renewals through Driver and Vehicle Services

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Clear pricing, instant issuance — $50,000 bond, $250, no quote theater

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Soft credit check only — never a hard inquiry, and the price stays $250 either way

A-ratedA.M. Best carriersInstantissued the moment you pay1–3 yrterms available

Trusted by industry leaders

How it works

Three steps to licensed.

Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit check.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with Driver and Vehicle Services

Pay online and receive the executed bond (form PS2446-10) ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

Minnesota licenses motor vehicle dealers through the Department of Public Safety's Driver and Vehicle Services (DVS), and conditions the license on a $50,000 surety bond under Minn. Stat. 168.27. The bond is a consumer-and-public-protection guarantee: it stands behind your faithful performance of the obligations of a dealer, including clear title and payment of taxes, license fees, and penalties.

It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Minnesota together with any seller, purchaser, or transferor harmed (the protected parties). If a dealer fails to deliver clear title, misapplies a customer's money, or otherwise violates dealer law, the harmed party can recover against the bond.

It is not insurance for you — if the surety pays a claim, you repay the surety. Dealers who deliver clean title and keep good records treat the bond as a license formality, not a risk.

Minn. Stat. 168.27 (form PS2446-10)Minnesota motor vehicle dealers are licensed by Driver and Vehicle Services under Minn. Stat. 168.27, which conditions the license on a $50,000 corporate surety bond (filed on DVS form PS2446-10) conditioned on the faithful performance of a dealer's obligations and the payment of taxes, fees, and penalties. A reduced $5,000 bond applies to dealers limited to boats, snowmobiles, small horse trailers, motorized bicycles, and mopeds — verify your category, and send us the application if you're unsure.

You need this bond if you're

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Applying for a MN dealer license — new, used, wholesale, or broker

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Renewing your dealer license and your current bond is expiring or non-renewing

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Adding a location or class that Driver and Vehicle Services ties to a bond filing

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Moving to Minnesota from another state and getting licensed here

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit check. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

Do I pay the $50,000?No. You pay $250. The $50,000 is the surety's maximum liability to the state and harmed buyers; it's not a deposit, and nobody holds your money.

Who requires this bond?Minnesota Driver and Vehicle Services requires it as a condition of a motor vehicle dealer license, under Minn. Stat. 168.27. No active bond, no license.

What does the bond guarantee?That you deliver clear title on the vehicles you sell, handle customer funds properly, pay taxes and fees, and follow Minnesota dealer law. If you fail to and someone is harmed, they can claim against the bond — and if the surety pays, you repay the surety.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. It's the only extra step beyond the application, and it informs approval, not price. The price stays $250 either way: credit can affect whether we approve the bond, never what it costs.

When does it renew?Terms run 1, 2, or 3 years — your choice at purchase. You'll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your dealer license to stay valid.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Same family

Other Minnesota motor vehicle dealer bonds.

Not sure this is the one your license calls for? These are the other motor vehicle dealer bonds we write in Minnesota. Each has its own statute and bond amount.

Related bonds

Other Minnesota bonds.

Driver and Vehicle Services is waiting on one document.

$250 flat, short application, bond issued when you pay. Free until issued.

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