Who requires it
New Hampshire Division of Motor Vehicles
License & permit · New Hampshire
New Hampshire Motor Vehicle Dealer Bond
New Hampshire DMV dealer licenses require a $25,000 bond—or a certificate of deposit or letter of credit DMV accepts—under RSA 261:98. That covers retail, wholesale, and automotive recycling dealers, and utility dealers when DMV rules require a bond. The bond protects individual buyers if a dealer’s check is unpaid, a clean title is not delivered, a vehicle was stolen, or the odometer was not disclosed. For dealer agents who handle registrations, it also covers unpaid town, city, or state title and registration fees. You need a separate bond for each business name and each community where you have a place of business.
Common bond amount
$25,000
Fixed amount under RSA 261:98; separate bond for each trade name and each community with a place of business.
How you file
File with DMV; surety bond, or CD/letter of credit
Renewal
Maintain while licensed; 60-day cancellation notice to DMV
Who requires it
Applicants for and holders of New Hampshire retail, wholesale, and automotive recycling dealer credentials, plus utility dealers when DMV rules impose the bond, filing with the Division of Motor Vehicles.
How much is required
RSA 261:98 fixes the amount at twenty-five thousand dollars. The statute does not publish sales-volume tiers. A New Hampshire–authorized certificate of deposit or irrevocable letter of credit in the same amount may substitute when the department allows it.
How to get and file it
Have a surety authorized by the New Hampshire Insurance Department issue a dealer bond in the exact business name and legal address on your DMV application, or arrange an accepted CD or letter of credit. File the original with the dealer license package along with local approvals, background checks, and other DMV checklist items. Keep the bond or equivalent in force while the dealer license remains active. Sureties must give DMV and the dealer sixty days’ notice before canceling. Order a replacement before the effective date if you still need coverage. File a separate bond whenever you add a trade name or open in another community.
Cost note
Twenty-five 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
- $25,000
- Covered dealer classes
- Retail, wholesale, automotive recycling, and utility dealers when required by rule
- Separate bonds
- One bond per trade name and per community with a place of business
Official sources
Related resources
Frequently asked questions
Do wholesale or recycling dealers use a different amount?
No. RSA 261:98 sets one $25,000 amount for retail, wholesale, and automotive recycling dealers, and for utility dealers when DMV requires a bond. Confirm any utility-dealer rule with DMV.
If I operate under two names, do I need two bonds?
Yes. Paragraph IV of RSA 261:98 requires a separate bond for each different name under which the dealer conducts business and for each community where the dealer has a place of business.
Related New Hampshire bond guides
Mortgage Banker / Broker / Servicer Bond
$50,000 / $100,000 minimums
Mortgage bankers, brokers, and servicers licensed under RSA chapter 397-A must keep a bond on file with the Banking Department through NMLS while licensed. RSA 397-A:5 sets a $50,000 minimum for brokers and a $100,000 minimum for bankers and servicers. The Banking Department can require a higher amount so coverage matches the loans originated by the company’s mortgage loan originators. The surety must give 30 days’ written notice before canceling. If a claim is filed, file a replacement right away.
Small Loan Lender Bond
$25,000
Companies that lend under New Hampshire’s small-loan, payday-loan, and title-loan rules must keep a $25,000 bond on file with the Banking Department. RSA 399-A:4 protects people harmed by chapter violations. Applications and renewals run through NMLS. The surety must give 30 days’ written notice before canceling. If a claim is filed, file a replacement right away.
Public Adjuster Bond
≥ $20,000
New Hampshire public adjusters must have at least $20,000 of coverage on file before the Insurance Department issues a license. RSA 402-D:11 allows either a surety bond from an authorized insurer or an irrevocable letter of credit from a qualified bank. The bond protects people harmed by the adjuster’s mistakes, fraud, or unfair practices. The surety must give at least 30 days’ notice before ending coverage. If the bond or letter of credit lapses, you may no longer act as a public adjuster.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a New Hampshire application
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Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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