Skip to content
Search
Client portal (opens in a new tab)Call 1-800-777-1TSAGet started

Arizona bonds

Arizona — NEW Motor Vehicle Dealer Bond

For an Arizona new motor vehicle dealer application, this bond addresses title-delivery failures and unpaid title or registration charges. Use the new-dealer business details when you start with Propeller.

Purchase Now (opens in a new tab)Call 1-800-777-1TSA

Continue to our secure checkout partner, Propeller (opens in a new tab).

Recorded state
Arizona
Category
Vehicles, titles & transportation

What this bond does

The bond protects members of the public who suffer financial losses due to specific failures by the dealer. This includes the non-payment of required registration fees, taxes, or title fees collected by the dealer, as well as failure to provide a valid vehicle title certificate that is free of undisclosed liens or prior interests at the time of sale.

Who needs it
An Arizona new motor vehicle dealer applying for or renewing the ADOT dealer license.
Who it protects
People with covered financial losses from title-delivery or fee-payment failures, up to the bond's stated limit.

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.

Regulatory Requirements and Bond Scope

In accordance with ARS Title 28, Chapter 10, Article 3, applicants must file this bond to demonstrate financial responsibility to the Director of ADOT. The obligation remains in effect from the date of execution until properly terminated by the surety or replaced by a new, accepted bond.

The liability of the surety is limited to the penal sum stated on the bond document regardless of the duration the bond is active. It is designed specifically to address damages arising from registration fee mismanagement or title delivery failures occurring during the licensed period.

Cancellation and Liability Provisions

The surety may terminate its liability under the bond by providing a 60-day written notice to the Director of ADOT. Termination becomes effective at the conclusion of this 60-day window, provided the principal has not filed a replacement bond before that date.

Crucially, the termination of the bond does not absolve the surety or the principal of liability for acts or omissions that occurred prior to the effective date of the termination. All obligations under the bond terms remain enforceable for events occurring during the active coverage period.

Administrative Filing Standards

The bond document must be fully completed and include the necessary wet signatures from the principal, partners, or authorized officers. Incomplete applications or missing signatures are not accepted by the ADOT licensing department.

The document must accurately reflect the principal's business information, including the trade name and established place of business, which must match the details provided in the formal dealer license application to ensure processing efficiency.

Sources

Have these ready

  1. Match the legal business name, DBA and address to the new-dealer license application.
  2. Have ADOT's required bond amount and Form 38-1301 instructions ready for the provider application.
  3. After issuance, complete the required wet signatures and check that the bond is fully filled out before filing with ADOT.

Questions about this bond

What specifically triggers a claim against this bond?

A claim is triggered if the dealer fails to deliver a clear vehicle title at the time of sale or fails to pay registration fees, title fees, or taxes that were collected from a customer.

Does this bond protect customers from mechanical defects in a vehicle?

No. The bond is specifically limited to financial losses related to title delivery and registration or tax fee payments; it does not function as a warranty for vehicle quality or mechanical condition.

How long is the notice period for bond cancellation?

The surety must provide at least 60 days' written notice to the Director of ADOT before the bond can be terminated.

Can I use an electronic signature on the bond form?

The ADOT requirement specifies that all sections must be completed and include a wet signature for the bond to be valid.

Related bonds

Keep exploring

How can we help you get started?

Choose the quote that fits, and we’ll take it from there.

Business insurance quoteFor owners and their teamsPersonal insurance quoteFor your family and home

Have a question? Contact us