Vehicle Or Vessel Dealer Bond
Required for motor vehicle dealers in Idaho selling new or new and used vehicles. Bond amount varies by dealer class: $10,000-$20,000 for Class 3, $40,000 for Class 4.
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About This Bond
The Vehicle or Vessel Dealer Bond is a surety bond required by the State of Idaho for motor vehicle dealers who sell new vehicles or both new and used vehicles. This bond ensures that dealers comply with Idaho's motor vehicle dealer laws and regulations.
Who Needs This Bond: Motor vehicle dealers operating in Idaho who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. The bond amount depends on the dealer's classification - Class 3 dealers require either $10,000 or $20,000 coverage, while Class 4 dealers must carry $40,000 coverage.
Protection and Purpose: This bond protects the State of Idaho and consumers from financial losses that may result from the dealer's failure to comply with state laws, regulations, or contractual obligations. It provides recourse for damages caused by fraudulent practices, failure to transfer titles properly, or other violations of motor vehicle dealer regulations.
Bond Details: The bond has a one-year term and is renewable annually. Dealers must maintain continuous coverage to keep their license active and continue operating legally in Idaho.
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At a glance
Idaho Auto Dealer Bond Key Facts
Governed by Idaho Code § 49-1608 (License Bond).
The basics
What Is an Auto Dealer Bond in Idaho?
An Idaho auto dealer bond — officially a Vehicle or Vessel Dealer Bond — is a surety bond you must file with the Idaho Transportation Department (ITD) to get or renew a motor vehicle dealer license. The amount depends on your dealer type: $20,000 for retail dealers, $40,000 for wholesale-only dealers, and $10,000 for dealers selling only motorcycles, ATVs, utility-type vehicles, truck campers, or snow machines. Idaho requires the bond under Idaho Code section 49-1608.
Good to know - Required to get or renew an Idaho vehicle or vessel dealer license; the amount is set by dealer type. Retail dealers post $20,000, wholesale-only dealers post $40,000, and dealers selling only motorcycles, ATVs, utility-type vehicles, truck campers, or snow machines post $10,000.
The bond is a promise that you will run your dealership honestly — that you will not commit fraud, make false statements, or break Idaho’s motor vehicle laws or ITD rules. The State of Idaho is the obligee, the party the bond answers to.
If you break those rules and cause someone a financial loss, that person can file a claim against your bond, up to its full amount. The bond protects your customers and the public, not you. If the surety company pays a claim, you must pay the surety back.
You need a dealer license once you sell five or more titled vehicles or vessels in a calendar year. The bond can be written in continuous form and must stay active the whole time you are licensed — if it is cancelled or becomes invalid, ITD suspends your dealer license.
Qualification
What You Need to Qualify for a Idaho Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, an Idaho vehicle or vessel dealer license with ITD Dealer Services.
- You know your dealer type — retail, wholesale-only, or motorcycle/ATV/UTV/truck-camper/snow-machine — because it sets your bond amount ($20,000, $40,000, or $10,000).
- Your bond is written by a corporate surety licensed to do business in Idaho, with the State of Idaho as the obligee.
- Your bond shows the exact ownership, DBAs, and dealership location listed on your dealer license application.
- You can keep the bond continuous and active with no lapse the whole time you are licensed.
- You have an established place of business in Idaho and your business details ready (legal name, ownership, and location).
Step by step
How to Get an Auto Dealer Bond in Idaho: Step by Step
Choose your Idaho dealer type
Decide which dealer license you need, because your type sets your bond amount: $20,000 for retail dealers, $40,000 for wholesale-only dealers, and $10,000 for dealers selling only motorcycles, ATVs, utility-type vehicles, truck campers, or snow machines.
Complete your dealer license application
Download and fill out the Application for Vehicle or Vessel Dealership License (ITD 3170). Use the application instructions to gather your supporting documents, such as proof of an established place of business in Idaho.
Application for Vehicle or Vessel Dealership License (ITD 3170)Get your Idaho dealer bond
Buy your bond for the amount your dealer type requires and we handle the form. We issue your Vehicle or Vessel Dealer Bond on the official bond form and send it to you to include with your application. There is no bond form for you to download or sign.
File your application, bond, and fees
Submit your completed ITD 3170, your issued bond, your supporting documents, and your fees to ITD Dealer Services. Retail dealers also pay the Idaho Consumer Asset Recovery Fund (ICAR) fee. The application instructions list everything that must be included.
ITD 3170 Application Instructions & Fee Schedule (ITD 3170 (Instructions))Keep your bond active
Renew your bond before it expires so your coverage never lapses — your Idaho dealer license cannot stay active without the bond on file. If the bond is cancelled or becomes invalid, ITD suspends your license.
Paperwork
Idaho Dealer Bond Forms & Documents
The official dealer bond — we issue this for you on the official bond form and send it to you to file with your application. You do not download or complete it.
The dealer license application you complete and submit to ITD Dealer Services.
View formITD instructions listing required documents and the current dealer license and ICAR fees.
View formCompleted for each salesperson you hire — you complete and submit this.
View formYou'll also need
Cost
How Idaho Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Idaho sets the bond by dealer type — $20,000 for retail dealers, $40,000 for wholesale-only dealers, and $10,000 for motorcycle, ATV, utility-type-vehicle, truck-camper, and snow-machine dealers. That figure is the coverage, the most a claim can collect.
You pay a premium, which is a small percentage of your bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from ITD’s license and ICAR fees.
Worked example
If you open a used car lot, your bond is $20,000. You do not pay $20,000 — you pay a premium on it, often a small percentage of the amount for well-qualified applicants. A wholesale-only dealer posts a $40,000 bond and a motorcycle-only dealer posts $10,000, so the premium scales with your bond amount.
Filing
Filing Information
Idaho Transportation Department (ITD), Division of Motor Vehicles — Dealer Services
Filing notes
Idaho names the State of Idaho as the obligee, and the bond protects the public. We issue your Vehicle or Vessel Dealer Bond on the official bond form for the amount your dealer type requires.
The bond must be written by a corporate surety licensed to do business in Idaho, and it must show the exact ownership, DBAs, and dealership location listed on your dealer license application.
File the bond with your Application for Vehicle or Vessel Dealership License (ITD 3170) and fees. In most cases we send you the issued bond to include with your application packet to ITD Dealer Services.
The bond may be written in continuous form and must stay active with no lapse while you are licensed. If the bond is cancelled or becomes invalid, ITD suspends your dealer license, so renew your coverage on time.
FAQ
Idaho Auto Dealer Bond FAQ
Yes. Before ITD issues a vehicle or vessel dealer license, you must file a surety (performance) bond, under Idaho Code section 49-1608. The amount depends on your dealer type.
It is $20,000 for retail dealers, $40,000 for wholesale-only dealers, and $10,000 for dealers selling only motorcycles, ATVs, utility-type vehicles, truck campers, or snow machines.
It depends on your dealer type. If you sell vehicles to the public you are a retail dealer and need the $20,000 bond. Wholesale-only dealers need $40,000, and dealers selling only motorcycles, ATVs, UTVs, truck campers, or snow machines need $10,000.
It protects the public, with the State of Idaho as the obligee. If a dealer commits fraud or breaks Idaho’s motor vehicle laws and causes a financial loss, the harmed person can file a claim against the bond, up to its full amount.
Idaho allows some long-standing dealers who have held a bond for several consecutive years with no lapses, claims, or paid judgments to apply to operate without one. The exact terms are set by ITD and Idaho Code — confirm your eligibility with ITD Dealer Services before dropping coverage.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
The Idaho Transportation Department (ITD), Division of Motor Vehicles — Dealer Services. You can reach Dealer Services at (208) 584-4343 or dealers@itd.idaho.gov.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Idaho Transportation Department (ITD), Division of Motor Vehicles — Dealer Services before you file. This page is informational and not legal advice.
FAQ
Idaho Auto Dealer Bond Questions
The cost of a Idaho auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Idaho auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Idaho license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
