Motor Vehicle Dealer Bond in Indiana

What this bond requires in Indiana

Indiana requires a $25,000 surety bond for all motor vehicle dealer license applicants, executed on State Form 53966; older versions of the form are rejected. The bond runs in favor of the Secretary of State to secure payment of fines, penalties, costs, and fees, and also secures damages to persons aggrieved by violations of IC 9-32 by the dealer. As of October 1, 2024, bond and insurance updates must be submitted through the Dealer Portal at dealers.sos.in.gov; mail and email submissions are no longer accepted. Continuation certificates are accepted, and any lapse in coverage results in license suspension until a new bond is on file.

Who requires it

The motor vehicle dealer bond is required by the Indiana Secretary of State, Auto Dealer Services Division under IC 9-32-11-2.

How to file in Indiana

Applicants apply online through the Auto Dealer Services Division Dealer Portal at dealers.sos.in.gov and upload a signed Indiana Dealer Bond (State Form 53966) along with the other required items (background check within 60 days, INBiz business entity documentation, certificate of insurance, license fee, photo ID, location photos, Indiana Department of Revenue retail merchant certificate, zoning affidavit, and, for previously unlicensed used dealers, a dealer training completion certificate). After October 1, 2024, all subsequent bond/insurance updates must also be submitted through the Dealer Portal.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Indiana?

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

How much is the bond in Indiana?

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 Indiana Secretary of State, Auto Dealer Services Division.

How is the bond filed?

Applicants apply online through the Auto Dealer Services Division Dealer Portal at dealers.sos.in.gov and upload a signed Indiana Dealer Bond (State Form 53966) along with the other required items (background check within 60 days, INBiz business entity documentation, certificate of insurance, license fee, photo ID, location photos, Indiana Department of Revenue retail merchant certificate, zoning affidavit, and, for previously unlicensed used dealers, a dealer training completion certificate). After October 1, 2024, all subsequent bond/insurance updates must also be submitted through the Dealer Portal.

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.