Alaska Auto Dealer Bond Requirements
Most Alaska motor vehicle dealers must file a $100,000 bond in favor of the state, while a dealer who sells only motorcycles files $25,000. The bond covers people who lose money from a dealer's fraud or law violations, and a claimant can sue the surety directly.
- Who requires it: Alaska Department of Administration; AS 08.66.060.
- Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Official Alaska Requirements
"The amount of the bond shall be $100,000, except that the amount of a bond for a dealer who sells only motorcycles shall be $25,000."Alaska Statutes, AS 08.66 • View Official Requirements →
Who needs the bond, and what it covers
In Alaska, a dealer is a person, other than a manufacturer, who sells, leases, solicits, or arranges the sale or lease of five or more motor vehicles in any 12 consecutive months, or who acts as a buyer's agent. If that describes your business, you file a bond in favor of the state with your application and keep it in force the whole time you are registered. The bond amount is $100,000, except that a dealer who sells only motorcycles files $25,000. It is conditioned on doing business in compliance with the dealer law and the other laws of the state, and on not committing fraud or making fraudulent representations as a dealer.
How a claim against the bond works
If a person suffers loss or damage from a dealer's fraud, fraudulent representations, or a violation of the dealer law or another Alaska law, that person has a right of action against the dealer and a personal right of action against the surety on the bond. The surety's total liability cannot be more than the amount of the bond. If the surety later cancels the bond, that does not relieve it of liability that arose or accrued before the cancellation.
Applying for your dealer registration
Dealer licensing in Alaska is a biennial registration under AS 08.66. Your application is accompanied by the $50 biennial registration fee, paid every two years, and the bond. The Department of Administration assigns your distinctive registration number only after the fees are paid and the bond is filed.
Your application also includes:
- A statement that no person holding a five percent or greater interest in the business has, in the five years before the application, been convicted of a felony involving fraud, embezzlement, or misappropriation of property.
- A statement about workers' compensation coverage.
- A copy of a certificate of insurance showing you maintain liability insurance for bodily injury and property damage on an auto dealer's form.
- If you sell a vehicle as a new or current model vehicle with a manufacturer's warranty, the manufacturer's name and the date and duration of your sales and service agreement with it.
Renewal, cancellation, and term
You renew your registration before January 1 every two years. A bond you have already filed stays valid for a registration renewal unless the surety has given the commissioner of administration written notice of cancellation, so it carries over to the renewal. A surety may cancel the bond by giving written notice to the commissioner of administration or the commissioner's designee.
Your place of business
Your application includes a statement that you are a bona fide dealer in motor vehicles with an established business at the location you give.
Steps
- Confirm you are a dealer. You are a dealer if you sell, lease, solicit, or arrange five or more motor vehicles in any 12 consecutive months, or act as a buyer's agent.
- Line up insurance. Obtain liability insurance for bodily injury and property damage on an auto dealer's form, and get a certificate of insurance for your application.
- Get your bond. File a bond in favor of the state: $100,000, or $25,000 if you sell only motorcycles. What you pay is a share of the bond amount, set by the surety from your credit and finances.
- Prepare your statements. Include your bona fide dealer and established-location statement and the five-year felony statement for owners holding five percent or more.
- Pay and file. Submit the application with the $50 biennial registration fee and the bond; your registration number is assigned once the fees are paid and the bond is filed.
- Renew every two years. Renew your registration before January 1 every two years; your bond carries over unless the surety cancels it.
Frequently asked questions
How much is the Alaska auto dealer bond?
It is $100,000 for a dealer, except $25,000 for a dealer who sells only motorcycles.
Who needs a dealer license and bond?
Anyone who sells, leases, solicits, or arranges five or more motor vehicles in any 12 consecutive months, or who acts as a buyer's agent. People selling a vehicle they actually used themselves or for a family member, and those who sell vehicles only incidentally to another main business, are not dealers.
Who does the bond protect?
Anyone who suffers loss from a dealer's fraud, fraudulent representations, or a violation of Alaska law can sue the dealer and the surety directly, and the surety's total liability for all claims cannot exceed the bond amount.
Does the bond renew every year?
No. Registration is renewed before January 1 every two years, and the bond stays valid for renewal unless the surety gives written notice of cancellation.
Did Alaska change the bond amount?
Yes. House Bill 36 raised the dealer bond from $50,000 to $100,000 and added the dealer insurance requirement. It became Chapter 17 SLA 21 and took effect October 11, 2021.
What happens if I don't register and file a bond?
A dealer who fails to register and file a bond is guilty of a violation, and a dealer who knowingly violates the chapter is guilty of a class A misdemeanor.
Who is the bond payable to?
The bond runs in favor of the state, and the surety must be one the commissioner of administration accepts.
Do I need insurance as well?
Yes. You must maintain liability insurance for bodily injury and property damage on an auto dealer's form and include a certificate of insurance with your application.
How do I get an Alaska auto dealer bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
Compare nearby states: Washington, Oregon, and Hawaii dealer bonds.
Alaska dealers: vehicles without a title
Trade-ins and auction units sometimes arrive with a missing or defective title. Read how a bonded title works on the Alaska bonded title page, or browse the state-by-state title bond directory.
Four situations dealers run into have their own guides: titling a salvage or rebuilt unit, buying out of state without a title, titling a trailer that arrives without paperwork and a wrong VIN on a title before resale.
Stocking more than cars? See an RV with no title, titling a truck that arrives without paperwork and side-by-side title options.
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