A Florida Motor Vehicle Dealer Bond is a mandatory surety bond required by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) for most business owners applying for an auto dealer license. This bond, typically set at a $25,000 bond amount, acts as a financial guarantee that the dealership will operate ethically, pay all required taxes, and strictly follow state laws. Unlike insurance, this bond protects the consumer; if a dealer commits fraud, fails to transfer a title, or misrepresents a vehicle’s condition, the affected customer can file a claim against the bond for compensation. Proof of this valid bond is a non-negotiable requirement to obtain and renew your Florida dealer license each year.

 The cost of a Florida motor vehicle dealer bond is not a flat fee but a premium that typically ranges from $188 to $2,500 per year. While the total bond amount required by the state is $25,000, you only pay a small percentage of this total—usually between 1% and 10%—based on your personal credit score. Applicants with excellent credit (700+) can secure rates as low as $188 to $250 annually, while those with lower credit scores may pay higher premiums to offset the risk. Ultimately, the surety company determines your specific rate during the underwriting process, but the cost is a fraction of the total coverage amount required to maintain your auto dealer license.

 A Florida Motor Vehicle Dealer Bond functions as a legally binding contract between three specific parties: the auto dealer (Principal), the FLHSMV (Obligee), and the surety company that issues the bond. Unlike standard business insurance that protects your inventory, this surety bond acts as a line of credit designed to protect the consumer. If a dealership engages in unlawful acts—such as failing to transfer a valid vehicle title, misrepresenting a car’s condition (odometer fraud), or failing to pay required fees—the affected customer can file a claim against the bond. The surety company will investigate the complaint and pay out valid claims up to the $25,000 bond amount. However, the dealer remains fully liable and must indemnify (reimburse) the surety for every dollar paid out, including legal costs.

A Florida Motor Vehicle Dealer Bond is a mandatory licensing requirement for any individual or business that buys, sells, displays, or deals in three or more motor vehicles within a 12-month period. The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) strictly enforces this rule to prevent unlicensed "curbstoning." Specifically, this $25,000 surety bond is required for applicants seeking the following license classes:

• Independent Dealer (VI): For buying and selling used cars.
• Franchise Dealer (VF): For selling new cars under a manufacturer agreement.
• Wholesale Dealer (VW): For selling exclusively to other licensed dealers.
• Salvage Dealer (SD): For dealing in wrecked or salvaged vehicles.
• Auction Dealer (VA): For selling vehicles via bid.

Note: Mobile Home Dealers (DH) and Recreational Vehicle (RV) Dealers are also required to be bonded, though their bond amounts may differ ($25,000 and $10,000, respectively).

 To get a Florida Intrastate Movers Bond, you must first apply with a licensed surety provider who will underwrite the bond based on your personal credit history. Once approved for the standard $25,000 bond amount, you will receive the original Household Moving Services Performance Bond form. You must sign this document and mail it physically - along with your registration application (Form FDACS-10250) and the $300 fee - to the Florida Department of Agriculture and Consumer Services (FDACS) in Tallahassee. To renew your bond, you typically do not need to file a new bond form each year; instead, you pay your renewal premium to the surety company to keep the policy active. Your surety will then issue a Continuation Certificate, which verifies your coverage remains in force. You must maintain this active bond continuously to satisfy the biennial (two-year) renewal requirement for your state moving registration.