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Alabama Designated Agent Bond

How much does a designated agent bond cost in Alabama?

The Alabama Department of Revenue’s Motor Vehicle Division requires the following professionals to post $25,000 non-dealer designated agent surety bonds before conducting business in the state:

SuretyBonds.com can issue these bonds for as little as $175 based on a review of the applicant’s credit. Find out what you’ll pay for your designated agent bond and request your quote now!

If you’re looking for information about surety bonds for motor vehicle dealers in Alabama, click here. Automotive dismantlers and parts recyclers should click here.

Bond Type Bond Amount Cost*
$25,000 Designated Agent Bond $25,000 Starts at $175 Apply Now

Call 1 (800) 308-4358 or fill out our online contact form to begin our fast and easy bonding process.

Why do I need this bond?

By posting an Alabama non-dealer designated agent bond, principals (designated agents) pledge to conduct business according to the laws of the state.

If the principal conducts unlawful business, the bond protects harmed parties from financial loss up to the full amount of the bond. The principal, in turn, must reimburse the surety for any damages paid out.

Our team of surety bond specialists is dedicated to getting you bonded quickly and for the best price possible. Click here to get started!

What’s the fine print?

Designated agent bonds in Alabama remain in full force and effect until canceled. The surety can be released and discharged from liability to the state by filing a written request to be released and discharged with the Department of Revenue. The surety is released 60 days after the request is filed.

How to become a designated agent in Alabama

To become a registered designated agent in Alabama, applicants must meet the following license-based qualification requirements:

  • licensed financial institutions - submit a copy of their Title 5, Chapter 19, State Banking License or equivalent
  • pawnshops - submit copy of Alabama Pawnshop License
  • out-of-state financial institutions (manufactured homes only) - submit a copy of company’s State business or regulatory license
  • law firms (manufactured homes only) - submit a copy of document evidencing that a principal of the firm is admitted to the State Bar
  • title agents (manufactured homes only) - submit a copy of certificate of authority issued by the Alabama Department of Insurance

Other registration requirements include:

  • submitting a completed designated agent package (available on the department’s website)
  • completing a training course conducted by the department
  • establishing an ETAPS account

Complete licensing information can be accessed from the Additional Resources section of this page.

Take the first step toward becoming a designated agent in Alabama by getting your free, no obligation quote!

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Get a FREE Alabama Motor Vehicle Designated Agent Bond Quote Today!

Additional Resources

Alabama Department of Revenue Motor Vehicle Division Non-Dealer Application for Designated Agent (Bond of Designated Agent - Non-Dealer form included)

Steps to Become a Designated Agent

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