Who requires it
Kentucky Motor Vehicle Commission
License & permit · Kentucky
Kentucky Motor Vehicle Dealer Bond
Kentucky does not make every motor vehicle dealer post a fixed statewide surety. KRS 190.030(9) lets the Motor Vehicle Commission require a bond of up to $100,000 when it doubts an applicant’s financial responsibility or compliance. 605 KAR 1:030 adds a concrete asset path for new, used, motorcycle, automotive mobility, and leasing dealers: show at least $50,000 in unencumbered cash or inventory, and if assets sit between $50,000 and $100,000, obtain a commercial bond for the difference to $100,000. Auction dealers may face higher commission-set amounts.
Common bond amount
Conditional · up to $100,000+
Often equal to $100,000 minus unencumbered cash/inventory when assets are $50,000–$100,000; auction may exceed $100,000.
How you file
File with the Motor Vehicle Commission when the Commission requires a bond
Renewal
Maintain while licensed; replace if the Commission orders a higher amount
Who requires it
Applicants and licensees for Kentucky Motor Vehicle Commission dealer credentials when the Commission requires a bond under KRS 190.030(9) or the financial-responsibility path in 605 KAR 1:030. Manufacturers, factory branches, and their agents are outside the statutory bonding subsection. Restricted mobility dealers must separately show at least $100,000 net worth under Commission dealer-requirement materials.
How much is required
Under 605 KAR 1:030, dealers who demonstrate between $50,000 and $100,000 of unencumbered cash or unencumbered motor vehicle inventory may be licensed only if they also obtain a commercial bond equal to the difference between that asset figure and $100,000. The Commission may still require a KRS 190.030(9) bond for applicants above the $100,000 threshold when financial responsibility or compliance is in doubt. Auction dealers may be required to post more than $100,000. The Commission notifies the applicant when a bond is required.
How to get and file it
Complete the Motor Vehicle Commission dealer application path and wait for Commission direction on whether a bond is required and in what amount. Have an authorized surety issue a commercial bond in the name of the State of Kentucky for aggrieved parties at the amount the Commission specifies, then file it as instructed before expecting the license to issue or continue. Maintain any required bond while licensed. The statutory bond is invoked only after court adjudication. If the surety cancels or the Commission orders a higher amount, replace coverage promptly so the license does not fall out of compliance.
Cost note
The ordered amount—often the shortfall below $100,000—is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Asset floor
- ≥ $50,000 unencumbered cash or inventory for covered dealer classes (605 KAR 1:030)
- Shortfall bond
- Assets $50,000–$100,000 → bond equals difference to $100,000
- Discretionary bond
- Commission may require a bond up to $100,000 (auction may be higher)
- Notice
- MVC notifies the applicant if a bond is required
Official sources
Related resources
Frequently asked questions
Will my Kentucky dealer application automatically need a bond?
Not always. Many applicants satisfy 605 KAR 1:030 with unencumbered cash or inventory of $100,000 or more. The Commission requires a bond when the regulation’s shortfall formula applies or when KRS 190.030(9) financial-responsibility doubts arise. Follow the written notice from MVC.
Do auction dealers use the same $100,000 cap?
MVC dealer-requirement materials state that auction dealers may be required to post more than the ordinary $100,000 ceiling that applies to other dealer types. Confirm the ordered amount with the Commission.
Related Kentucky bond guides
Mortgage Lender Bond
$15,000 / $20,000 / $50,000 / $250,000
Kentucky mortgage loan companies, mortgage loan brokers, and mortgage loan originators must keep a bond for the entire license or registration period. KRS 286.8-060 sets floors of $250,000 for mortgage loan companies and $50,000 for mortgage loan brokers. 808 KAR 12:021 adds individual originator amounts of $15,000 or $20,000 based on annual loan volume, using Forms ML-1 through ML-4 filed through NMLS with the Department of Financial Institutions.
Money Transmitter Bond
$500,000–$5,000,000
Kentucky money transmitter applicants and licensees must maintain a surety bond or other security acceptable to the commissioner under KRS 286.11-013. The statutory floor is $500,000. The commissioner may raise the requirement to as much as $5,000,000 based on net worth, transaction volume, or other criteria established by order or rule. Filings typically run electronically through NMLS with the Department of Financial Institutions.
Public Adjuster Bond
$50,000
Kentucky public adjusters must show $50,000 of financial responsibility before the Department of Insurance issues the license and must keep that security for the license term. KRS 304.9-430 accepts a surety bond from an authorized insurer or an irrevocable letter of credit from a qualified financial institution. If the security terminates or becomes impaired, the public adjuster license automatically ends and must be surrendered.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Kentucky application
Kentucky 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.
Agents Ready to Help
Share your agency checklist or bond form and we will confirm the agency, amount, and filing steps before issuing.
Talk to the pro →