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Iowa Motor Vehicle Dealer Bond

Price Varies / 1 year term


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How much does an Iowa motor vehicle dealer $75,000 bond cost?

Iowa motor vehicle dealer bond costs start at $375 for the state-required 1-year term. Your exact vehicle dealer bond premium will be provided after a quick application review. Apply now to get your free quote! 

How do you get an Iowa auto dealer bond? 

You can apply for your free Iowa motor vehicle dealer bond quote online 24/7. You'll need to provide the following information for Department of Transportation approval.

  • dealer or dealership name
  • physical dealer or dealership location address
  • dealer license number, if available

Once you've paid your invoice, you'll receive your official vehicle dealer bond by email.

How fast can I get an MVD bond?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Iowa car dealer bonds faster than any other surety provider. Quote approvals and invoices are often provided same-day during business hours.

If you have any questions about the Iowa auto dealer bond or your application, call 1(800)308-4358 to speak with one of our friendly surety experts. We're here to guide you through the motor vehicle dealer bond process so you can get back to running your business.

Bond Type
$75,000Motor Vehicle Dealer Bond

What is an Iowa motor vehicle dealer bond?

Iowa Code Chapter 322 Section 4 requires individuals file a $75,000 surety bond as part of the state's motor vehicle dealer license process. IOWADOT Form 417064 is officially titled the “Bond for Motor Vehicle Dealer and/or Towable Recreational Vehicle Dealer,” but it's more commonly known as an "auto dealer bond," "motor vehicle dealer bond," or "car dealer bond." The language on the form requires that any motor vehicle dealer licensed in the state comply with all rules and regulations outlined in Iowa Code Chapters 321 and 322

Why is the Iowa motor vehicle dealer $75,000 bond required?

This bond protects motor vehicle purchasers from losses or damages caused by dealerships that fail to operate according to Iowa code. By filing an Iowa motor vehicle dealer bond, individuals agree not to commit acts prohibited in the code, which include, but are not limited to:

  • using any advertising statement that is misleading or untrue
  • destroying a vehicle identification number (VIN) or any other distinguishing number
  • giving an incorrect certificate of title or failing to give a certificate of title to a purchaser after a sale is complete
  • lending a registration card, plate, or permit to someone unauthorized to use them

If a dealership commits a prohibited act, the surety company will pay valid claims up to the full $75,000 bond amount, which the bonded dealer must then reimburse. 

This Iowa surety bond is required for motor vehicle dealer licensing. If you're trying to register a vehicle with a missing title, you need a separate Iowa certificate of title bond.  

Who regulates auto dealer licensing?

The Iowa Department of Transportation enforces licensing requirements for auto dealers in the state, including the $75,000 bond amount requirement. You can contact the Dealer Program staff by phone at 1(515)237-3156 or by email at [email protected].

How do I update my dealer bond form?

If the Iowa DOT requires your surety bond documentation to be updated for any reason, contact your surety company. If you purchased your bond from, email [email protected] to explain the needed change. 

The most common changes for these bonds include updating the dealer or dealership's name or city.

How do you renew your Iowa auto dealer bond?

Your Iowa auto dealer surety bond must be renewed whenever its current 1-year-term expires. Once you pay your renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next license term. 

What documentation needs to be sent to the Iowa DOT to get a dealer license?

Complete the following steps to apply for your Iowa auto dealer license.

  1. Submit an Application for Motor Vehicle or Towable Recreational Vehicle Dealer License.
  2. Pay all required application fees.
  3. Submit a Manufacturer's Certification of Compliance with Iowa Code Chapter 322A (new franchises only).
  4. Establish a place of business that includes an office, repair facility, and a display facility.
  5. Contact the Bureau of Investigation & Identity Protection at 1(515)237-3050 or [email protected] to request your onsite business inspection. 
  6. Purchase financial liability coverage for your dealership.
  7. Complete an 8-hour pre-licensing course managed by the Iowa Independent Automobile Dealer Association (used motor vehicle dealers only).

Submit all application documentation to the Iowa DOT. 

Vehicle Central Programs 
Iowa Department of Transportation
P.O. Box 9278
Des Moines, Iowa 50306-9278

For more licensing information, review the Iowa Department of Transportation: Motor Vehicle Dealer's License to Sell webpage.

*Note: If you plan to lease or recycle vehicles, you'll need a separate license.

What can dealers do to avoid claims against the Iowa auto dealer bond?

To avoid claims made against your Iowa auto dealer bond, you must not commit any prohibited acts listed in Iowa Code Chapters 321 and 322 and adhere to all rules and regulations set forth by the code. 

Call 1 (800) 308-4358 to talk with a Surety Expert