Who requires it
Alabama Department of Revenue — Motor Vehicle Division
License & permit · Alabama
Alabama Motor Vehicle Dealer Bond
Alabama Department of Revenue Motor Vehicle Division licenses for dealers and several related credentials rest on one $50,000 Motor Vehicle Surety Bond. Form MVT 4-3 names the Commissioner of Revenue, covers the checked license boxes on the form, and also covers designated-agent duty for licensed dealers.
Common bond amount
$50,000
Fixed $50,000 on Form MVT 4-3 / Rule 810-5-12-.02.
How you file
File Form MVT 4-3 with the Department of Revenue; stays in force while licensed
Renewal
Keep in force while licensed; replace before cancellation or status is revoked
Who requires it
Applicants and licensees for new or used motor vehicle dealer, motor vehicle rebuilder, wholesaler, master dealer, automotive dismantler and parts recycler, motor vehicle wholesale auction, designated agent, and title service provider credentials that Rule 810-5-12-.02 and Form MVT 4-3 list. Non-dealer designated agents still need the same $50,000 surety when they are not already covered by a dealer bond.
How much is required
Code of Alabama § 40-12-398 establishes a dealer bond of not less than $50,000 (or another amount the department prescribes). Rule 810-5-12-.02 and Form MVT 4-3 currently set a fixed $50,000 amount for the covered license classes.
How to get and file it
Have an Alabama-authorized surety complete the current Form MVT 4-3 in the exact legal and DBA names on the MyDMV / dealer application. Submit an original bond with a matching-date power of attorney as the Department of Revenue directs—recreated or altered forms are rejected. Mark every license box that applies so one bond covers each credential you hold. Coverage begins on the license issuance date and must stay in force while the license or designated-agent status is active. If the surety files a cancellation notice and no replacement arrives before the cancellation date, the department revokes the license or designated-agent status immediately until a new bond is on file. The form allows the surety to request release after sixty days’ written notice to the Department of Revenue, without cutting off claims that already accrued.
Cost note
Fifty thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $50,000
- Form
- Department of Revenue Form MVT 4-3 (current revision) with power of attorney
- Who requires it
- Commissioner of Revenue of the State of Alabama
- Name match
- Legal name and DBA must match the license application / MyDMV record
Official sources
Related resources
Frequently asked questions
Does one dealer bond also cover designated-agent work?
Yes. ALDOR states that the dealer regulatory license bond satisfies the designated-agent bonding requirement. Non-dealers who become designated agents still post the $50,000 surety separately.
What happens if my surety cancels the bond?
If ALDOR receives a cancellation notice and you do not file a replacement before the cancellation date, the department revokes the license or designated-agent status until a new bond is submitted.
Related Alabama bond guides
HVAC / Refrigeration Contractor Bond
$20,000
Active Alabama heating, air conditioning, and refrigeration contractors file a $20,000 bond with the Board of Heating, Air Conditioning & Refrigeration Contractors. Board Form BF-1 names the Board and lets you check heating/air conditioning, refrigeration, or both on one bond.
Mortgage Broker / Lender Bond
Volume-based (Banking Department)
Alabama mortgage brokers and residential consumer-credit lenders that fall under the SAFE Act framework must keep a State Banking Department–prescribed bond in force. The company bond can also cover mortgage loan originators who are employees or exclusive agents of that licensee, and the required amount must reflect the dollar volume of loans originated as the supervisor determines.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Alabama application
Alabama will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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