Attention Alabama Dealers, Designated Agents, Rebuilders and Reconditioners: Dealer License Requirements are Changing

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Ashton Agency is here to provide the necessary information about the change and to assist dealers with the new surety bond requirement.

We will save you money!

The Alabama state legislature passed House Bill 400 to standardize the surety bond and license requirements for motor vehicle dealers, designated agents, rebuilders, and reconditioner licensees to hold a $25,000 bond. The $25,000 bond replaces the need for multiple bonds for each license.

If a dealer purchased a Lifetime bond with an agency when that program was offered - or if a dealer was grandfathered in by the state - the bond will no longer be valid after September 30, 2014. Under the new bond requirements, he or she will need to purchase a new bond, and premium must be paid each year prior to renewal.

In addition to the $25,000 bond requirement, the license fee has increased from $10.00 for each license to $25.00 for the one standardized license. This means that dealers that have multiple licenses will save money.

As always, each dealer is required to have a blanket motor vehicle liability insurance policy to cover the inventory on the lots as well as while the inventory is on public streets for personal or test driving purposes. This coverage must be current in order to apply for a new license. If any licensee fails to hold the liability policy during the licensing period, the dealer now may be imposed a fine of up to $5,000.

The Alabama Department of Revenue is working towards having the new bond form loaded into the online system by August 1st for those who renew their license and bond at the end of September.

If you have additional questions or concerns, please contact the Alabama Department of Revenue at: (334) 242-1170, or visit their website:

For more information, please read: House Bill 400 by clicking the link.

Ashton Agency is ready to assist dealers with the new bond requirements whether a license is held for auto dealer, designated agent, rebuilder and/or reconditioner. Call and speak with a bond specialist today. Ashton Agency offers very competitive rates on garage liability and garage keepers insurance. We are the one stop shop for dealerships.

About Ashton Agency:
Since 1968, Ashton Agency has been providing the auto dealer industry license surety bonds nationwide. They have built relationships with businesses across the country by offering simple solutions to bonding and special insurance needs and by offering a comprehensive selection of surety bonds for ALL 50 states. There are two national offices- one located in the East Coast (Florida) and one on the West Coast (Oregon). Get a free quote today!

Ashton Agency, Inc.
Phone: (800) 451-4854 (Florida)
Phone: (800) 452-2663 (Oregon)

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Sara Lancaster
Ashton Agency
+1 800-451-4854
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