Illinois dealer designated agent bonds.
$500 flat.
Also known as the Illinois auto dealer bond or car dealer bond.
Illinois requires licensed motor vehicle dealers to file a $50,000 designated agent bond with the Secretary of State. Ours is $500 flat — set by our carrier's rate book, identical for every dealer. A quick soft credit check may apply; the bond is issued when you pay.
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How much does an Illinois dealer designated agent bond cost?
$500 at the $50,000 amount, the same for every applicant.
Three steps to licensed.
Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:
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.
Approved
Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the Secretary of State
Pay online and receive the executed designated agent bond ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the bond actually guarantees
Illinois licenses motor vehicle dealers through the Secretary of State, Vehicle Services Department, under the Illinois Vehicle Code (625 ILCS 5/5-101 et seq.). A dealer is also a designated agent of the Secretary for collecting and remitting title and registration fees and taxes — and the $50,000 bond stands behind that role and your compliance with the Vehicle Code.
It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Illinois together with harmed buyers (the protected parties). If a dealer fails to remit fees or taxes, fails to deliver clear title, or otherwise violates dealer law, the harmed party can recover against the bond.
It is not insurance for you — if the surety pays a claim, you repay the surety. The bond is commonly required for the first 60 months of dealer operation and renews on the statutory 12/31 cycle. Dealers who deliver clean title and remit on time treat it as a license formality.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $50,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The bond runs to December 31 whatever day you buy; the premium covers the period to that date.
Renewal falls on the statutory date, December 31, in the year your term ends.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
E-sign & file with the Secretary of State. Pay online and receive the executed designated agent bond ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.
What sets the price
The premium is fixed at $500 at the $50,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other Illinois 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 Illinois. Each has its own statute and bond amount.
Other Illinois bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
The Secretary of State is waiting on one document.
$500 flat, short application, bond issued when you pay. Free until issued.