Alabama Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Alabama Auto Dealer Bond Key Facts
Governed by Ala. Admin. Code r. 810-5-75-.34; Code of Ala. 1975 §§ 32-8-1 to 32-8-88.
The basics
What Is an Auto Dealer Bond in Alabama?
A bonded title in Alabama is a regular certificate of title the Alabama Department of Revenue issues on the strength of a surety bond. You use it when the Department is not satisfied as to who owns the vehicle, or that there are no hidden liens on it — for example, you bought a vehicle but never got a proper title. Alabama calls this a Certificate of Title Surety Bond (form MVT 10-1).
Good to know - There is no minimum vehicle value. A surety bond is required whenever the Department is not satisfied as to ownership of the vehicle or that there are no undisclosed security interests, regardless of the vehicle value.
The bond protects any prior owner, lienholder, or later buyer if someone else turns out to have a claim on the vehicle. You file it together with your title application — it does not replace the application.
Alabama is unusual in how it sets the bond amount. Instead of using a percentage of your vehicle value, the Department uses a standardized amount based on the vehicle type and how many model years old it is. The bond stays in effect for three years, and the title you receive is printed with the legend "THIS TITLE WAS SECURED UNDER THREE-YEAR SURETY BOND".
Qualification
What You Need to Qualify for a Alabama Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You cannot give the Department the normally required proof of ownership, or the Department is not satisfied that there are no undisclosed liens or security interests on the vehicle.
- You have documents showing how you got the vehicle (for example, a bill of sale or a prior registration).
- The bond is issued by an insurance company licensed to write surety bonds in Alabama.
- If you already hold a surety-bond title that is still in effect in another state, you must still post an Alabama surety bond to title the vehicle here.
Step by step
How to Get an Auto Dealer Bond in Alabama: Step by Step
Confirm you need a bonded title
Alabama requires a surety bond when the Department of Revenue is not satisfied as to who owns the vehicle or that there are no undisclosed liens. If you can produce the normal proof of ownership instead, you do not need a bond.
Request your surety bond in the Surety Bond Portal
Complete the electronic Surety Bond Request (form MVT 10-1A) in the Alabama Department of Revenue Surety Bond Portal. Once the Department approves your request, it provides the Certificate of Title Surety Bond (form MVT 10-1) for you to complete.
Electronic Surety Bond Request (MVT 10-1A)Find your standardized bond amount
Alabama sets your bond at a standardized amount based on the vehicle type and its model-year age, not on its market value. For example, a passenger vehicle or pickup is $50,000 if under 5 model years old, $25,000 if 5 to 9 years old, and $10,000 if 10 or more years old. A salvage vehicle uses 25% of the standard amount (under 10 years) or 20% (10 or more years). Enter your bond amount in the calculator above to estimate your premium.
Buy and complete your surety bond (MVT 10-1)
Purchase the bond from an insurance company licensed to write surety bonds in Alabama and complete the Certificate of Title Surety Bond (form MVT 10-1) with the insurer. The insurer signs the bond and includes a power of attorney for the representative who signs it. Once executed, the bond stays in effect for three years.
Certificate of Title Surety Bond (MVT 10-1)Apply for your title through a designated agent within 90 days
Within 90 days of the date the bond was executed, apply for the certificate of title (form MVT 5-1E) through a designated agent — your county license plate issuing official, a licensed Alabama dealer, or an Alabama bank or credit union. Bring the completed MVT 10-1, your proof of how you acquired the vehicle, and pay the title fee.
Application for Certificate of Title (MVT 5-1E)Paperwork
Alabama Dealer Bond Forms & Documents
The online request that starts the bonded-title process in the ADOR Surety Bond Portal.
View formThe surety bond itself, provided through the portal after approval and completed with the insurer.
The title application, completed through a designated agent.
You'll also need
Cost
How Alabama Auto Dealer Bond Pricing Works
You do not pay the full bond amount. In Alabama the bond amount is a standardized figure set by the vehicle type and model-year age — not the vehicle value — and you pay a premium, which is a smaller percentage of that amount.
Your premium depends on the bond amount and underwriting. Use the calculator above for an estimate; your final premium may vary. The $15 title application fee and the $1.50 designated-agent commission are state fees, separate from the surety bond premium.
Worked example
If your vehicle is a 12-year-old passenger car, the standardized bond amount is $10,000. You do not pay $10,000 — you pay only the premium, a small percentage of that bond amount.
Filing
Filing Information
Alabama Department of Revenue, Motor Vehicle Division
We prepare the issued bond and send you a copy for your records. Filing requirements vary by state, license type, carrier, and bond form.
334-242-9000FAQ
Alabama Auto Dealer Bond FAQ
Yes. Alabama issues a certificate of title backed by a surety bond (form MVT 10-1) under Administrative Code rule 810-5-75-.34 when the Department of Revenue is not satisfied as to ownership of the vehicle or that there are no undisclosed liens.
The bond amount is a standardized figure set by the vehicle type and model-year age, not a percentage of the vehicle value. For example, a passenger car or pickup is $50,000 (under 5 model years), $25,000 (5 to 9 years), or $10,000 (10 or more years). You pay a premium on that amount, not the full bond. Use the calculator above to estimate it.
By the vehicle type and how many model years old it is, using the standardized schedule in Administrative Code rule 810-5-75-.34. A vehicle deemed salvage uses 25% of the standard amount (under 10 model years) or 20% (10 or more model years). The amount is not based on the vehicle market value.
Three years. The bond indemnifies prior owners, lienholders, and later buyers for three years from the date it is executed, and the title is printed with the legend "THIS TITLE WAS SECURED UNDER THREE-YEAR SURETY BOND".
Through a designated agent — your county license plate issuing official, a licensed Alabama motor vehicle dealer, or an Alabama bank or credit union — within 90 days of executing the bond. You first request the bond online in the ADOR Surety Bond Portal.
The title application fee is $15 for a motor vehicle, plus a $1.50 designated-agent commission (a license plate issuing official may add another $1.50). These state fees are separate from the surety bond premium.
Yes. If you apply with a surety-bond title that is still in effect in another jurisdiction, Alabama still requires you to post an Alabama surety bond to title the vehicle here.
Sources
Last verified 2026-06-23. Requirements change - confirm current details with Alabama Department of Revenue, Motor Vehicle Division before you file. This page is informational and not legal advice.
FAQ
Alabama Auto Dealer Bond Questions
The cost of a Alabama auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Alabama auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Alabama license instructions.
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AutoDealersBond.com is operated by Insurance Services by Shield, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Insurance Services by Shield is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
