Alaska Motor Vehicle Dealer Surety Bond
An Alaska motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of Alaska. The Alaska Department of Administration, Division of Motor Vehicles (DMV) requires all motor vehicle dealer and buyer’s agent certificate of registration applicants to post a surety bond. The standard bond for motor vehicle dealers is $100,000 — doubled from $50,000 under House Bill 36, effective September 1, 2021. Motorcycle-only dealers require a $25,000 bond. Surety One, Inc. offers quick, no-hassle underwriting for Alaska motor vehicle dealer bonds.
Bond Amount & Requirements
Alaska Statute AS 08.66.060 requires all individuals licensed as a dealer of motor vehicles, motorcycles, or a buyer’s agent to file a surety bond. The bond form is officially titled the “Motor Vehicle Dealer’s/Buyer’s Agent Surety Bond.” The bond protects any person who suffers losses or damages resulting from a dealer who commits fraud or violates any provision of AS 08.66.
| Bond Amount | License Type | Description |
|---|---|---|
| $100,000 | New Motor Vehicle Dealer | Sells new and used motor vehicles under manufacturer franchise |
| $100,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public |
| $100,000 | Buyer’s Agent | Acts as agent to purchase vehicles on behalf of buyers |
| $25,000 | Motorcycle-Only Dealer | Exclusively sells motorcycles (new and/or used) |
| Exempt | Boat Dealer | Boat dealers are not required to obtain a surety bond |
Important — Bond Doubled in 2021: Alaska House Bill 36 (HB 36) doubled the motor vehicle dealer bond requirement from $50,000 to $100,000, effective September 1, 2021. The increase was enacted to strengthen consumer protections against unscrupulous dealers and to bring Alaska’s bonding requirements closer to the national average for states of similar market size. All active dealers were required to submit updated $100,000 bonds or riders by October 11, 2021. HB 36 also introduced mandatory liability insurance requirements for dealers: $50,000 property damage, $100,000 per person injury, and $200,000 per occurrence.
Who Needs This Bond?
Alaska requires a dealer certificate of registration for any person who sells six (6) or more motor vehicles in a year. The bond requirement applies to:
- New motor vehicle dealers — $100,000 bond
- Used motor vehicle dealers — $100,000 bond
- Buyer’s agents — $100,000 bond
- Motorcycle-only dealers — $25,000 bond
Boat dealers are specifically exempt from the surety bond requirement under Alaska law.
How Much Does the Bond Cost?
The cost of an Alaska motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by underwriting factors including credit score, financial strength, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Alaska Dealer License Requirements
In addition to the surety bond, the Alaska DMV requires the following for a Certificate of Registration:
- Completed dealer registration application (must be notarized prior to submission)
- $50 registration fee (payable by money order, check, or credit card)
- Valid Alaska State business license
- Public liability and property damage insurance: $50,000 property damage / $100,000 per person injury / $200,000 per occurrence (required under HB 36)
- No felony convictions within the past 10 years
- Valid telephone number on record
- Certificate of Registration displayed at business location
- Business transaction documents (contracts, purchase agreements, advertising records) maintained on file
Filing, Renewal & Cancellation
The original, signed, and notarized surety bond must be filed with the Alaska DMV. The bond is continuous in form — it has no expiration date and runs until the surety cancels it. However, the bond premium is payable annually. Dealer certificates of registration are valid for two years and expire on January 1st every other year (biennial). Renewal applications, fees, and dealer plate renewals must be submitted to the DMV before expiration.
The aggregate liability against the bond cannot surpass the bond’s penal sum. If the bond is canceled, the dealer must provide a new bond to the DMV before the cancellation date to maintain licensure.
Bond Claims
A claim against the Alaska motor vehicle dealer surety bond may be filed by any person who suffers loss or damage resulting from a dealer’s fraud or violation of AS 08.66. The surety will investigate and pay valid claims up to the full bond amount. The bonded dealer must reimburse the surety for all amounts paid.
Alaska Department of Administration
Division of Motor Vehicles
Attn: Dealer Services
3901 Old Seward Hwy, Suite 101
Anchorage, AK 99503
Phone: (907) 269-5551
Web: dmv.alaska.gov
Surety One, Inc. is the Alaska surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for Alaska motor vehicle dealer bonds, motorcycle dealer bonds, buyer’s agent bonds, and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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Obligee's Bond Form
