Indiana vehicle distributor bonds.
$250 flat.
Indiana requires anyone in the business of selling new motor vehicles to Indiana dealers to hold a distributor license from the Secretary of State's Auto Dealer Services Division, backed by a $25,000 vehicle merchandising bond under IC 9-32-11-2. Ours is $250 flat.
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How much does an Indiana vehicle distributor bond cost?
$250 at the $25,000 amount, the same for every applicant.
Three steps. One sitting.
Distributor bonds are about the simplest thing in surety. Here's the entire process:
Apply online
Business details, the owner, and an effective date, plus a one-time consent that authorizes a soft credit pull. That is the application.
Pay & e-sign
Your price is final at checkout — $250 flat. The credit consent authorizes a soft pull only; it never affects your score, and no hard inquiry ever runs on this bond.
File with the Secretary of State
Your executed bond and power of attorney arrive by email, ready to file with your distributor license application or renewal. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
A vehicle distributor is a business in the business of selling new motor vehicles to dealers located in Indiana, including through a branch office. Licensing runs through the Secretary of State's Auto Dealer Services Division, and IC 9-32-11-2 conditions the license on a $25,000 surety bond filed on the state's Vehicle Merchandising Certificate/Bond form.
It's a three-party arrangement: you (the principal), the surety carrier, and the State of Indiana (the obligee). The bond secures two things — payment of any fines, penalties, costs, or fees the Secretary of State assesses against the licensee after notice, a hearing opportunity, and the chance for judicial review, and payment of damages to a person harmed by a violation of Article 32 after a judgment is issued against the licensee.
It is not insurance for you — if the surety pays a claim, you repay the surety. The bond has to stay in force for as long as the distributor license is active, so we track it and notify you ahead of your renewal to keep the $25,000 filing continuous.
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 $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
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
File with the Secretary of State. Your executed bond and power of attorney arrive by email, ready to file with your distributor license application or renewal. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $250 at the $25,000 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 issuing fields, including a one-time consent that authorizes a soft credit pull only.
Start the application →Common questions.
Other Indiana bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Finish your distributor license today.
$250 flat, bond often issued in the same sitting. Free until issued.