Alabama Designated Agent

The Alabama Designated Agent is a $25,000.00 bond. This bond is available in 1, 2, or 3 year terms.

The Designated Agent Bond is required if you act as dealers, financial institutions, or pawnshop appointments. Penalties vary by state. 

Ashton Agency has a 99% approval rate and offers the $25,000 designated agent bond for licensed Alabama regulatory dealers at some of the most competitive rates available. Let us save you money!


The Alabama state legislature passed House Bill 400 tostandardize the surety bond and license requirements for motor vehicle dealers,designated agents, rebuilders and recondition licensees to hold a $25,000 bond.  The $25,000 bond replaces the need for multiplebonds for each license.  Once the bill isenacted, the following changes will occur:

1.)   Instead of rebuilders and reconditioners havingto have two separate licenses, it will be combined into one.

2.)   New and used dealers will not have to obtainmultiple license categories to conduct business.

3.)   Instead of motor vehicle dealers (whether new,used, and/or wholesale), designated agents, rebuilders and reconditionershaving separate bonds for each license, it is being combined into one $25,000 bond. 

The Alabama Department of Revenue is working towards havingthe new bond form loaded into the online system by August 1st forthose who renew their license and bond at the end of September.  The Department is also developing a system tohelp agencies such as, Ashton Agency to better assist Alabama dealers,designated agents, rebuilders, and reconditioners renew their bond. 

If you have additional questions or concerns, please contactthe Alabama Department of Revenue at: (334) 242-1170, or visit their website:

Who needs the designated agent bond?

In the State of Alabama, designated agents are required to obtain a $25,000 surety bond in addition to their dealer regulatory license in order to be in compliance with sections 32-8-34 and 32-20-22, Code of Alabama 1975.

What is the designated agent bond?

The $25,000 designated agent bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.

All Alabama designated agent licenses expire annually on September 30th.

What else do I need to obtain or renew my license?

In order to become licensed as a designated agent in Alabama, applicants must already be licensed as one of the following:

  • Motor vehicle dealer (also known as a regulatory dealer)

  • Financial institution

  • Pawn shop

  • Law firms (manufactured homes only)

  • Title agents (manufactured homes only)

If you are licensed as a motor vehicle dealer, you will also be required to obtain liability insurance. The current minimums are:

  • $25,000 for death/bodily injury to one person

  • $50,000 for death or bodily injury to two or more people

  • $25,000 for damage or destruction of property of others

The insurance is often called "garage liability." Ashton is proud to offer competitive rates with some of the best A-rated insurance companies.

Ashton offers the designated agent bond in conjunction with both the $25,000 motor vehicle dealer/dealer regulatory bond and the $10,000 dismantler bond. Click on the links below or call us at (800) 451-4854 for free quotes on all your bond and insurance needs!

I have everything I need. What now?

Designated agents will submit the original signed bond form to the Alabama Department of Revenue's Motor Vehicle Division at the following address:

Alabama Department of Revenue

Motor Vehicle Division

P.O. Box 327640

Montgomery, AL 36132-7640

The Motor Vehicle Division can be reached by phone at (334) 242-1170.

Get bonded within one business day!

Only Ashton Agency can provide you with:

  • The lowest price for your mobile home dealer bond.

  • Quickest turnaround time.

  • The ability to meet or beat any competitor's pricing.

Many companies offer the designated agent bond, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the industry. We've been helping dealers get bonded for more than 45 years. Let us put that experience to work for you today!

Call us now at (800) 451-4854 for a free quote and we will contact you within 24 hours. We can assist you ove the phone to ensure you receive your bond quickly and easily!

Don't have time to speak on the phone? Please fill out our easy online application and fax to (407) 678-2468. We can get you started right away!

A Better Price Starts Right Here, Alabama!

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(800) 452-2663

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