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Nevada Vehicle Industry License Bond

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How much does a motor vehicle dealer bond cost in Nevada?

The amount of coverage required for your dealer license bond will vary depending on the type of business license you have and the type of vehicles you plan to sell. Premiums are calculated on a case-by-case basis, pending underwriting consideration. Applicants with strong financial credentials typically pay rates calculated at just 1% to 4% of the bond amount.

Bond Type
$10,000Vehicle Industry License BondUtility or Boat Trailers (unladen weight up to 3,500 lbs.)
$50,000Vehicle Industry License BondOff-Highway Vehicle, Motorcycles, Horse Trailers without Living Quarters, or Utility Trailers (unladen weight is 3,501+ lbs.)
$80,000Vehicle Industry License BondLessor
$100,000Vehicle Industry License BondAll Other Vehicles
$5,000Vehicle Industry License BondGarage
$10,000Vehicle Industry License BondBody Shop
$100,000Vehicle Industry License Bond for Transporter
$50,000Vehicle Industry License Bond for Wrecker or Salvage Pool

Nevada Dealer License Information

To become a licensed auto dealer in the state of Nevada, an individual must obtain a vehicle industry license bond for the specific license type being sought. Pricing is based on underwriting consideration and the type of vehicle the dealer plans to sell. Vehicles covered under this bond include motorcycles, travel trailers with living quarters or dual purposes, horse trailers weighing 3,501 pounds or more, utility trailers weighing 3,500 pounds or less and vehicles other than those previously stated.

In the event that a dealer commits fraud or other unethical business practices (such as selling any given vehicle for an incorrect price or withholding important information about the vehicle), a claim can be made on the bond to benefit harmed consumers.

Nevada vehicle industry business license bonds are continuous until canceled, and the surety must provide the state with at least 30 days of notice prior to cancellation.

Nevada Body Shop/Garage License Information

This specific vehicle industry license bond protects customers of repair garages and body shops. Consumers are protected from any damages suffered as a result of poor work efforts or unmerited errors conducted by the principal (repair shop or garage). If a customer’s vehicle is damaged when the principal is doing work on the engine, brake system, heating and air conditioning system or electrical system, or during an oil change or alignment procedure, the customer can bring a claim against the bond.

This bond will run continuously and in full effect. The surety company must provide at least 30 days written notice to the obligee before the bond can be canceled.

The principal is required to register with the State before obtaining this bond. On the bond form, the applicant must check the box stating what type of business he or she plans to do.

Nevada Wrecker/Salvage License Information

This specific bond corresponds with the wrecker/salvage vehicle industry business license type. A vehicle is classified as “salvaged” if:

  • the estimated cost to repair the damages has exceeded 65% of the market value of the vehicle
  • the vehicle is submerged in water and the water reaches a height higher than the door sill and has entered the passenger, trunk and engine compartments
  • the vehicle is in such poor condition that the parts can only be used as a source of scrap metal

Salvage vehicles can be restored and sold again by a dealer licensed to do so. Prohibited acts covered by this bond include, but are not limited to:

  • removing a salvage title or concealing the fact that a vehicle was considered salvage at the time of restoration
  • selling a restored vehicle that is not fully restored or safe for an individual to buy

This bond will run continuously and in full effect unless otherwise canceled by the surety. If the surety chooses to terminate the bond early, 30 days written notice prior to termination must be given to the obligee.

Nevada Transporter License Information

Vehicle transporter bonds are required to be licensed to transport new or used vehicles, trailers, motorcycles or semi-trailers in Nevada. Transporters must provide their own equipment to move the vehicle from point A to point B. The surety bond is put in place to cover the value of the consumer’s vehicle in case damage is done due to negligence on the part of the licensed professional.

This bond is continuous and remains in full effect unless otherwise canceled. If the bond is to be canceled, at least 30 days written notice must be given to the obligee.

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