Motor Vehicle Dealer Bond in Maryland

What this bond requires in Maryland

Bond must be issued by a surety authorized in Maryland, payable to the State of Maryland, and cover the primary location plus all supplemental locations under the same dealer license number (Md. Code Transp. § 15-308). The bonding company must give MVA at least 45 days notice by registered or certified mail before cancellation (COMAR 11.12.01.06). Continuous coverage is mandatory; lapse triggers license suspension or revocation. Bond amount may be re-rated using a prior operator sales history when an applicant takes over an existing licensed location.

Who requires it

The motor vehicle dealer bond is required by the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA), Business Licensing and Compliance Division under Md. Code, Transportation § 15-308; COMAR 11.12.01.06.

How to file in Maryland

After MVA approves the dealer license application, the applicant files the original surety bond (on a form approved by the Administration) with the Business Licensing and Compliance Division, MDOT Motor Vehicle Administration, 6601 Ritchie Highway N.E., Glen Burnie, MD 21062, as part of the application package. The bond runs concurrently with the license; the surety must give MVA 45 days prior written notice of any cancellation, and dealers must notify both MVA and the surety of any change to application information.

Get a real motor vehicle dealer bond quote for Maryland

Your bond type and state will be pre-filled. No upsell, no pressure.

FAQ

Common questions

Is a motor vehicle dealer bond required in Maryland?

Yes. Maryland requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $15,000 to $300,000.

How much is the bond in Maryland?

The bond amount is $15,000 to $300,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA), Business Licensing and Compliance Division.

How is the bond filed?

After MVA approves the dealer license application, the applicant files the original surety bond (on a form approved by the Administration) with the Business Licensing and Compliance Division, MDOT Motor Vehicle Administration, 6601 Ritchie Highway N.E., Glen Burnie, MD 21062, as part of the application package. The bond runs concurrently with the license; the surety must give MVA 45 days prior written notice of any cancellation, and dealers must notify both MVA and the surety of any change to application information.

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.