Florida franchise dealer bonds.
$275 flat.

Also known as the Florida auto dealer bond or car dealer bond.

Before Florida issues a franchised (new-car) motor vehicle dealer license, the dealer must file a $25,000 surety bond with the Department of Highway Safety and Motor Vehicles, under §320.27, F.S. Ours is $275 flat, set by our carrier’s rate book for this bond — the same $25,000 every motor vehicle dealer files.

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Required for a franchise (new-car) dealer license under §320.27, F.S.

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Fixed amount, fixed price — $25,000 bond, $275, no quote process

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Filed with DHSMV on form HSMV 86020 — franchise dealer licenses expire December 31

A-ratedA.M. Best carriersInstantunderwriting process1–3 yrterms available

Trusted by industry leaders

How it works

Three steps. One sitting.

License bonds are the simplest thing in surety. Here's the entire process:

NOW · ONLINE

Apply online

Business details and an effective date. That's the application — no financials, no credit section, no follow-up scavenger hunt.

MINUTES, USUALLY

Pay & e-sign

License bonds like this are among the thousands of bond types that issue right after purchase.

SAME DAY

File with DHSMV

Your executed bond (form HSMV 86020) arrives by email, ready to file with your franchise dealer license application or renewal. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

Florida licenses motor vehicle dealers through the Department of Highway Safety and Motor Vehicles under §320.27, F.S. A franchise dealer is one selling new vehicles under a manufacturer or distributor agreement — and like every Florida motor vehicle dealer, must file a $25,000 surety bond before the license issues.

The bond is for the benefit of any retail or wholesale customer harmed by the dealer’s violation of the conditions of the sale, failure to comply with a written contract, or violation of Chapter 319 or 320, F.S. It is filed on form HSMV 86020; franchise dealer licenses run on a calendar year and expire December 31.

It is not insurance for you — if the surety pays a claim, you repay the surety. Dealers who deliver clean title and honor their contracts treat the bond as a license formality, not a risk.

§320.27, F.S. (DHSMV; form HSMV 86020)Section 320.27, Florida Statutes, requires every applicant for a motor vehicle dealer license — including a franchise (new-vehicle) dealer — to deliver to DHSMV a $25,000 surety bond or irrevocable letter of credit before the license issues. The bond is for the benefit of any retail or wholesale customer harmed by a violation in connection with the sale or exchange of a vehicle, or a violation of Chapter 319 or 320. Filed on form HSMV 86020.

You need this bond if you're

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Applying for a franchise dealer license — a new-car dealer under a manufacturer agreement

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Renewing a franchise dealer license before the December 31 expiration

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Opening a new franchised rooftop that DHSMV ties to a bond filing

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Converting or adding a franchise to an existing dealer operation

One application, issued instantly.

These are the actual issuing fields — the application collects no credit information.

Start the application →

FAQ

Common questions.

How much is the Florida franchise dealer bond?The premium is $275 flat, set by our carrier’s rate book for this specific bond. The $25,000 bond amount is set by §320.27, so there is no quote process.

Do I pay the $25,000?No. You pay $275. The $25,000 is the surety's maximum liability if a valid claim is made against the bond — not a deposit, and nobody holds your money.

Is the franchise dealer bond different from an independent dealer bond?No — §320.27 sets the same $25,000 bond for every Florida motor vehicle dealer license, whether franchise (new-car) or independent (used). The form is HSMV 86020 in both cases. The license class differs; the bond amount does not.

Is there a credit check?The application collects no credit information for this bond. Most applications like this approve instantly.

When does it renew?Franchise dealer licenses run on a calendar year and expire December 31, so the bond must stay active across renewals. You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out, with autopay available.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Same family

Other Florida motor vehicle dealer bonds.

Not sure this is the one your license calls for? These are the other motor vehicle dealer bonds we write in Florida. Each has its own statute and bond amount.

Related bonds

Other Florida bonds.

Franchise dealer license waiting on the bond?

$275 flat, no credit review, bond often issued in the same sitting. Free until issued.

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