License & Permit
Designated Agent Bond
A designated agent bond is the Alabama surety bond a business must post to process vehicle title applications as a designated agent of the Department of Revenue.
- Required by
- Alabama Department of Revenue, Motor Vehicle Division
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises that the designated agent will handle title work under Alabama law and Department of Revenue rules. It runs to the Alabama Department of Revenue. Claims arise when a person suffers a loss from the agent's violation and the department approves the claim.
Who needs it
- Pawnshops and towing companies that process titles
- State-chartered financial institutions
- Insurance companies, and for manufactured homes, title agents and law firms
What the underwriter looks at
- Type of business applying
- Owner credit
- Volume of title work
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
I am a licensed dealer. Do I need a separate designated agent bond?
No. The Alabama Department of Revenue says the dealer bond also satisfies the designated agent bonding requirement.
How much is the bond for a non-dealer?
The Department of Revenue FAQ says non-dealers post a $50,000 surety bond payable to the State of Alabama. Confirm the amount on the current application before you apply.