Motor Vehicle Dealer Bond in Delaware

What this bond requires in Delaware

Delaware requires a $25,000 surety bond filed with the Delaware DMV Dealer Services unit to obtain or renew a motor vehicle dealer license under Title 21, Chapter 63. The bond is filed with the dealer license application.

Who requires it

The motor vehicle dealer bond is required by the Delaware Division of Motor Vehicles (Department of Transportation), Dealer Services under 21 Del. C. Ch. 63 (Sale of Motor Vehicles); § 6302 (license requirement) and § 6312 (issuance of dealer license).

How to file in Delaware

Applicants submit the dealer license application together with an executed $25,000 surety bond, certificate of insurance, and supporting documents to the Delaware Division of Motor Vehicles Dealer Services unit. The application is reviewed by DMV Dealer Licensing; bond must be issued by a surety authorized in Delaware. Annual license renewal requires the bond to be kept in force.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Delaware?

Yes. Delaware requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $25,000.

How much is the bond in Delaware?

The bond amount is $25,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Delaware Division of Motor Vehicles (Department of Transportation), Dealer Services.

How is the bond filed?

Applicants submit the dealer license application together with an executed $25,000 surety bond, certificate of insurance, and supporting documents to the Delaware Division of Motor Vehicles Dealer Services unit. The application is reviewed by DMV Dealer Licensing; bond must be issued by a surety authorized in Delaware. Annual license renewal requires the bond to be kept in force.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.