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Alabama bonds

Alabama — Designated Agent Bond

Applying to process Alabama title applications as a designated agent? Nondealers need a $50,000 bond payable to the State of Alabama. Use Purchase Now to begin with Propeller.

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Recorded state
Alabama
Bond type
Motor Vehicle Dealer / Vehicle Services Bond
Category
Vehicles, titles & transportation

What this bond does

Provides the security required for a nondealer's designated-agent application to the Alabama Department of Revenue.

Who needs it
Eligible nondealer businesses applying for designated-agent status. A licensed dealer's regulatory bond already satisfies this bonding requirement.
Who it protects
The State of Alabama, as the named recipient of the designated-agent bond.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Check whether you need a separate bond

Alabama distinguishes licensed dealers from nondealer designated agents. Check your business category before purchasing a second bond. Designated-agent approval and the required training are separate from the bond application.

Sources

Have these ready

  1. Have your business's legal name, designated-agent application and Alabama Revenue bond instructions available.
  2. Use the Department's requested form and effective date in the provider application.
  3. After issuance, include the bond in your designated-agent submission as directed.

Questions about this bond

Does every dealer need this separate bond?

Alabama Revenue says the dealer regulatory license bond satisfies the designated-agent bonding requirement.

Does the bond activate my designated-agent access?

No. The Department must approve the application and the designated agent must complete the required training.

Where do I apply for the bond?

Purchase Now opens Propeller in a new tab through The Southern Agency. Complete the bond application there, then follow the Department's submission instructions.

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