Illinois Auto Dealer Bonds

If you sell more than 5 cars in one year (defined as the last 12 months) in Illinois, then you are required by the Illinois Secretary of State to have a $50,000 Designated Agent Bond. This is sometimes known as an auto dealer bond or a motor vehicle dealer bond. This requirement applies to both new and used auto dealers and is outlined in the Illinois Vehicle Code. Our team has extensive experience navigating the bonding process in Illinois and have successfully helped countless dealers obtain their Designated Agent Bond. To get started, simply fill out our quick three-minute form, and we'll provide you with an instant quote.

Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.

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Motor Vehicle Dealer Bond

Bond Amount: $50,000

Required By: Illinois Secretary of State

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State Acceptance Guarantee
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Refund within 30 days
1 Year Bond Starts At
*Based on credit and experience
of total bond amount required

How Much Does It Cost?

Our rates for the $50,000 Illinois Designated Agent bond starts at $250 for a 1 year bond. The Illinois Designated Agent bond expires on 12/31 each year, so we’ll prorate the price for you based on when you apply for the bond. For example, if half of the year has already passed, then we’ll reduce your rate by half. You can then renew the bond with us in the new year at the full rate.

In general, having a higher credit score will often lead to lower bond prices. Additionally, some dealers may be eligible for discounts based on their prior work experience.

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Illinois Auto Dealer Bond Common FAQs

Are There Other Motor Vehicle Dealer Bonds in Illinois?

No. The $50,000 Designated Agent Bond listed above is the only bond you need to get licensed as a used or new auto dealer. It is sufficient to cover all of your license bonding requirements.

Is There Another Name for this Bond?

Yes. This bond is officially known as a “Designated Agent Bond for Illinois Vehicle Dealers”. The bond is also colloquially known as an “Illinois auto dealer bond” or a “Illinois motor vehicle dealer bond”. The three names are used interchangeably.

Why Do You Need An Illinois Motor Vehicle Dealer Bond?

The bond works to protect members of the public who does business with bonded auto dealers in case of a financial loss caused by certain unethical acts of the bonded dealer, such as the following

  • odometer tampering
  • failure to pay taxes and fees
  • failure to transfer a clean title into the buyer after sale

If any unethical acts were to occur, a claim can be made against the bond of the dealer. The surety company then investigates the claim and if found valid, a payment would be made on the bond, up to the limit of the bond amount.

How Do You Get An Illinois Motor Vehicle Dealer Bond?

  • Apply online by clicking on the "Quote" button on our website
  • Finish the application
  • Complete Payment

How Long Does It Take To Get Bonded?

We aim to provide same-day bonding service in most cases. After we receive a quote from our insurance partners, your pricing is final, and the process can be completed right away. We work diligently, even on weekends, to ensure a speedy bonding process. Our work hours are Monday to Saturday everyday 9:30 am to 7 pm CST, with reduced hours of 11:30am to 7pm CST on Sunday. We’re the only surety agency that provides service on weekends.

Does the Bond Expire?

Yes, the bond expires on 12/31 of each year. This means that the bond needs to be renewed every year, ideally before it expires. If you bond with us, we’ll handle reminders for you so you know when to renew. Lastly, if you get the bond into the year, we will prorate your pricing according to your bond start date relative to the start of the year.

How Is the Bond Priced?

The price of an Illinois dealer bond is determined by various factors, including the applicant's credit score, dealer experience, and the insurance provider. Typically, the credit score is the most significant factor, followed by the insurance company. We collaborate with more than 10 insurance companies that offer competitive pricing to give our clients the best possible rates. If you happen to find a better price somewhere else, inform us, and we'll strive to match it.