License & Permit
California DMV Business Partner Automation Bond
A bond the California DMV requires from companies in its Business Partner Automation program, which lets them register vehicles and issue plates electronically.
- Required by
- California Department of Motor Vehicles
- Bond amount
- $650,000 for first-line business partners and $1,000,000 for first-line service providers (13 CCR 225.09)
What this bond guarantees
The bond, filed on DMV form REG 866 under Vehicle Code 1685, promises the state that the business partner will handle DMV fees and transactions properly. If the partner fails to remit fees or causes losses through its program access, the DMV or others can claim on the bond. The partner must repay the surety for any claim paid.
Who needs it
- First-line business partners such as large dealers and registration services
- First-line service providers that supply the software and connection to the DMV
What the underwriter looks at
- Company financial statements
- Owner's personal credit
- Transaction volume
- Years in business
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Can I post a deposit instead of a bond?
Yes. The regulation allows a deposit under Code of Civil Procedure 995.710, filed with DMV form REG 4029.
Do all car dealers need this bond?
No. It applies only to businesses in the Business Partner Automation program. Ordinary dealers still need their regular dealer bond.