AL auto dismantler bonds.
$1,500 flat. Soft pull.

Alabama requires a $50,000 continuous surety bond before it licenses an automotive dismantler and parts recycler, under Code of Ala. § 40-12-398. Ours is $1,500 flat — 3% of the bond amount, identical for every licensee. One soft credit pull, e-signed in 1–2 business days.

Required for your AL dismantler & parts recycler license — filed with the Department of Revenue under §40-12-398
Fixed amount, fixed price — $50,000 bond, $1,500, no quote theater
Soft credit pull only — never affects your score, and the rate stays 3% either way
A-ratedA.M. Best carriers1–2 daystypical issuance1–3 yrterms available
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps to licensed.

Your dismantler license is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · 5 MINUTES

Apply once, online

Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the Department of Revenue

Pay online and receive the executed bond (Department form MVT 4-3) ready to submit with your dismantler license transmittal. Wet-ink originals mailed whenever the state insists.

The whole pricing page.

$50,000 bond × 3% = $1,500, one-time per term. Fixed amount, fixed price, multi-year if you want it.

1-year term
$1,500
2-year term
$3,000
3-year term
$4,500
About this bond

What it is and who needs it.

What the bond actually guarantees

Alabama treats anyone who keeps ten or more inoperable vehicles for more than thirty days as engaging in the business of an automotive dismantler and parts recycler, and licenses them through the Department of Revenue, Motor Vehicle Division. Code of Ala. § 40-12-398 conditions that license on a $50,000 continuous surety bond.

The bond is a compliance-and-public-protection guarantee: it stands behind your handling of titles, vehicle identification, and the tax and title laws governing dismantled vehicles and recycled parts. Applicants also need an active NMVTIS registration before licensing.

It is not insurance for you — if the surety pays a claim, you repay the surety. The carrier can be released 60 days after filing written notice with the Department, so the bond is written to stay continuous while your license is active. Dismantlers who keep clean title records treat it as a license formality.

Code of Ala. § 40-12-398 (form MVT 4-3)Code of Alabama 1975 § 40-12-398 requires a $50,000 continuous surety bond, payable to the State of Alabama on Department form MVT 4-3, before the Department of Revenue licenses an automotive dismantler and parts recycler. A person is presumed to be in the business if they hold ten or more inoperable vehicles for more than thirty days; an active NMVTIS registration is also required. The same $50,000 figure applies across the related motor-vehicle licenses (§§ 40-12-398, 40-12-414, 40-12-448, 32-8-34).

You need this bond if you're

Applying for an AL dismantler & parts recycler license — the bond files with your transmittal
Running a salvage yard or recycler that holds ten or more inoperable vehicles
Renewing your dismantler license and your current bond is expiring or non-renewing
Adding a salvage location the Department ties to a bond filing

Five minutes. The whole thing.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

Do I pay the $50,000? +
No. You pay $1,500 — the flat 3% of the bond amount. The $50,000 is the surety's maximum liability to the state; it's not a deposit, and nobody holds your money.
Who requires this bond? +
The Alabama Department of Revenue, Motor Vehicle Division, requires it as a condition of an automotive dismantler and parts recycler license, under Code of Ala. § 40-12-398. No active bond, no license.
Am I a dismantler under Alabama law? +
Alabama presumes you are engaging in the business if you hold ten or more inoperable motor vehicles for more than thirty days. Licensees also need an active NMVTIS registration before the Department issues the license.
Is there a credit check? +
Yes — one soft credit pull, which never affects your score. It informs approval, not price. The rate is a flat 3% either way: credit can affect whether we approve the bond, never what it costs.
When does it renew? +
Terms run 1, 2, or 3 years — your choice at purchase. You'll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your dismantler license to stay valid.
Related bonds

Other New York bonds.

The Department of Revenue is waiting on one document.

$1,500 flat, five-minute application, e-signed bond in 1–2 business days. Free until issued.

Your premium @ 3%$1,500
Apply now →