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.
Bond Amount: $50,000
Required By: Illinois Secretary of State
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.
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.
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
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.
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.
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.
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.
