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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 $10,000 non-dealer designated agent surety bonds before conducting business in the state:

  • licensed financial institutions
  • pawnshops
  • out-of-state financial institutions (manufactured homes only)
  • law firms (manufactured homes only)
  • title agents (manufactured homes only)

The $10,000 required bond amount is current as of August 1, 2014.

SuretyBonds.com issues these bonds for just $100 without a credit check. Since no underwriting consideration is required, everyone qualifies instantly. Get bonded now!

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

Bond Type Bond Amount Cost*
$10,000 Designated Agent Bond $10,000 $100 Buy Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

5 minutes and $100 is all it takes to get bonded when you choose SuretyBonds.com! Call 1 (800) 308-4358 or click here to get started.

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.

Get bonded instantly when you work with the experts at SuretyBonds.com!

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
  • and more

Complete licensing information can be accessed from the Important Links section of this page.

Take the first step toward becoming a designated agent in Alabama by purchasing your bond now!

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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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