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Dealer Surety Bond in Florida: $25,000 Requirement

Florida requires all licensed dealers to maintain a $25,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.

Bond Requirement at a Glance

Required Bond Amount$25,000
Issuing AuthorityFlorida Department of Highway Safety and Motor Vehicles (DHSMV)
Estimated Annual Cost$125–$375/year (0.5%–1.5% of $25,000)

Required for all licensed dealers. Wholesale dealers who sell 25+ vehicles/year need the same amount.

Who Needs a Surety Bond in Florida

Every Florida dealer must maintain a continuous surety bond. Bond must name DHSMV as obligee.

How to Get a Bond in Florida

Where to get it: Any surety company licensed in Florida. Popular: SureBonds.com, Surety1, Bond Exchange

Florida requires the bond be filed via DHSMV's online portal or by mail with form HSMV 86060.

Annual Premium Cost

$125–$375/year (0.5%–1.5% of $25,000)

Florida dealers who bundle their surety bond with a business owners policy (BOP) often get premium discounts.

How Claims Work

Buyer files complaint with DHSMV. DHSMV investigates and may facilitate claim against bond.

Florida allows direct consumer suits against dealer and the surety company under §501.976 F.S.

Penalties for Operating Without a Bond

License revocation; civil fines $500–$1,000/violation; potential criminal referral.

Florida-Specific Note

Florida dealers must post a $10,000 cash bond or letter of credit in lieu of surety if they sell vehicles on consignment.

Frequently Asked Questions

How much is a dealer surety bond in Florida?

Florida requires a $25,000 surety bond for licensed dealers. Required for all licensed dealers. Wholesale dealers who sell 25+ vehicles/year need the same amount.

Who requires a dealer surety bond in Florida?

Florida Department of Highway Safety and Motor Vehicles (DHSMV) requires the bond. Every Florida dealer must maintain a continuous surety bond. Bond must name DHSMV as obligee.

How much does a dealer surety bond cost annually in Florida?

Expect to pay $125–$375/year (0.5%–1.5% of $25,000). Florida dealers who bundle their surety bond with a business owners policy (BOP) often get premium discounts.

What happens if a Florida dealer doesn't have a surety bond?

License revocation; civil fines $500–$1,000/violation; potential criminal referral.

How does a surety bond claim work in Florida?

Buyer files complaint with DHSMV. DHSMV investigates and may facilitate claim against bond. Florida allows direct consumer suits against dealer and the surety company under §501.976 F.S.

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Source: Florida DHSMV Dealer Licensing. Verify current bond amounts with your state DMV before purchasing.

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