Utah Auto Dealer Bond— $75,000 Continuous Bond -- B+ Carrier Required

Utah applies a dual safeguard approach. The $75,000 bond amount -- among the highest in the nation -- ensures substantial consumer protection funds are available. The B+ or better A.M. Best rating requirement for the surety company ensures the carrier backing that bond is financially stable enough to pay claims. Most states accept any licensed surety; Utah explicitly mandates the carrier meet a financial strength standard. This combination means Utah consumers are protected both by the high bond amount and by the quality of the surety company behind it.

Under Utah Code 41-3-205, a $10,000 corporate surety bond is required for motorcycle dealers, off-highway vehicle (OHV) dealers, small trailer dealers, and crusher licenses. All other dealer types -- including new car, used car, special equipment, and large trailer dealers -- must carry the full $75,000 bond. Both bond amounts use the same Form TC-450 filed with MVED. Verify your dealer category with MVED before applying.

For the $75,000 bond: expect $750-$7,500 annually (1-10% of bond amount) depending on credit. Excellent credit (750+) typically qualifies for $750-$1,500 (1-2%). For the $10,000 motorcycle/OHV bond: costs start at $100-$300 annually. All carrier partners in our network meet Utah's A.M. Best B+ requirement. Use our auto dealer bond calculator for a personalized estimate.

Unlike states where bonds expire annually or biennially, Utah dealer bonds are continuous -- meaning they remain in effect indefinitely as long as the dealer is licensed and the premium is paid. There is no fixed expiration date. The bond stays on file with MVED until the surety company cancels it (with required advance notice) or the dealer voluntarily terminates. This means if your bond lapses for any reason, MVED considers you operating illegally under Utah Code 41-3-205.

Form TC-450 is the official "Bond of Motor Vehicle Dealer, Crusher or Body Shop" form required by the Utah Motor Vehicle Enforcement Division (MVED). This form is used for all dealer bonds ($75,000 and $10,000), body shop bonds ($20,000), and crusher bonds. The bond must be filed as a corporate surety bond -- individual sureties are not accepted. The form requires the surety company to be licensed in Utah with at least a B+ A.M. Best rating.

Yes. Under Utah Code 41-3-205, it is illegal to operate as a dealer without a current corporate surety dealer bond on file with MVED. Operating without a bond can result in license revocation, fines, and criminal penalties. Your bond must remain in effect continuously as long as you hold a dealer license. MVED actively enforces this requirement.

Yes, though the higher $75,000 bond amount means credit is more impactful on your premium. We work with multiple B+ rated carriers that consider factors beyond credit score -- business financials, industry experience, and collateral options. Even with challenged credit, approval is possible. For motorcycle/OHV dealers needing only $10,000, approval is generally easier and premiums are much lower regardless of credit.

Start by obtaining your surety bond on Form TC-450 -- we issue these within 1 business day from B+ rated carriers. Then complete Form TC-301 (Bonded Motor Vehicle Business Application) or Form TC-758 for additional locations. Submit to MVED with your insurance, tax license, and business registration. MVED will conduct a facility inspection. The process typically takes 4-6 weeks from application to license.