Alaska Auto Dealer Bond— $100,000 — Among the Highest Flat-Rate Bonds Nationally

House Bill 36 (HB 36), signed into law during the 32nd Alaska Legislature, doubled the dealer bond from $50,000 to $100,000 effective September 1, 2021. All active dealers had until October 11, 2021 to submit new bonds or riders showing the increased amount. The increase was designed to strengthen consumer protection given rising vehicle values and align Alaska's bond with its high cost of doing business.

Alaska auto dealer bonds ($100,000) cost $1,000-$10,000 annually depending on credit. With excellent credit (750+), expect $1,000-$2,000 (1-2%). Good credit (680-749) costs $2,500-$5,000 (2.5-5%). Fair credit (620-679) ranges $5,000-$7,500 (5-7.5%). Because Alaska requires one of the highest dealer bond amounts in the nation, premiums are proportionally higher. We work with specialized carriers to find competitive rates.

Under AS 08.66.060, the standard bond is $100,000 for all motor vehicle dealers. However, dealers who sell only motorcycles need just a $25,000 bond. This is a unique Alaska provision -- the motorcycle-only dealer category has its own lower bond threshold. All other dealer types, including new, used, wholesale, and buyer's agents, must carry the full $100,000 bond.

Contact the DMV Dealer/Fleet Unit at (907) 269-5551 to request an interested dealer application packet. The packet includes forms for your business information, bond, insurance, and registration fee ($50). Submit the completed packet with your original notarized $100,000 surety bond and proof of liability insurance. After review, the DMV schedules a facility inspection before issuing your license.

Alaska law requires a dealer license if you sell 5 or more vehicles within any 12-month period. This threshold applies to individuals as well as businesses. Operating without a license is a violation of AS 08.66 and can result in fines and criminal penalties. If you plan to operate a dealership, obtain your license before selling your first vehicle.

At $100,000, Alaska ties with Nevada for one of the highest flat-rate dealer bonds nationally. Neighboring Washington requires only $30,000, and Oregon requires $50,000. The only states that can exceed $100,000 are those with sliding-scale systems based on sales volume (like Hawaii's $10K-$200K range). Alaska's flat $100,000 means the same amount whether you sell 5 or 5,000 vehicles per year.

Yes, we work with carriers that specialize in high-amount bonds for all credit situations. Because Alaska's $100,000 requirement is among the highest nationally, some applicants with lower credit may pay premiums of 8-10% ($8,000-$10,000). We have secured bonds for applicants with scores as low as 500 through our network of specialized surety carriers.

Alaska dealer bonds renew annually. We send renewal reminders 60 days before expiration with updated pricing based on your current credit profile. Most renewals process within 1 business day. A surety may cancel a bond by giving written notice to the DMV commissioner, but cancellation does not relieve the surety of liability that accrued before cancellation. Never let your bond lapse -- it can trigger license suspension.