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Alabama Motor Vehicle Dealer Designated Agent Surety Bond

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The State of Alabama Department of Revenue, Motor Vehicle Division is responsible for the licensing of designated agents. Designated Agents process applications for certificate of title and include county license plate issuing officials, all Alabama motor vehicle dealers, and some financial institutions such as banks and credit unions. Non-dealer designated agents are not licensed motor vehicle dealers.

The Code of Alabama 1975, Sections 32-8-34 and 32-20-22, defines the designated agent license requirements which includes any company or person that performs their duties either personally or through any of their officers or employees must conduct faithful performance of their duties and provide a surety bond.

Designated Agent License and Surety Bond Requirements:

  1. Complete the online application (ETAPS) and pay the license fee.
  2. Applicants must attend the two six-hour training classes before their ETAPS account will be activated. The training class covers titling procedures and ETAPS user training.
  3. Attach a copy of the company’s state business or regulatory license.
  4. A surety bond is not required if the designated agent is also a licensed motor vehicle dealer.

How Much Will a Motor Vehicle Designated Agent Bond Cost?

There is no cost for the premium as long as the Alabama Motor Vehicle Designated Agent is also a motor vehicle dealer. Otherwise there is a cost for a non-dealer designated agent who is not a motor vehicle dealer. Rates start as low as $100 for bond amounts under $10,000, and 1% of the amount for bonds over $10,000 with good credit.

Did You know?

A motor vehicle dealer license satisfies the designated agent bonding requirement.

Related Links:

Alabama Dealer License / Designated Agent Information
Steps to Become a Designated Agent

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


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