Nebraska Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Nebraska Auto Dealer Bond Key Facts
Governed by Neb. Rev. Stat. § 60-1419.
The basics
What Is an Auto Dealer Bond in Nebraska?
A Nebraska auto dealer bond is a $50,000 surety bond you must file with the Nebraska Motor Vehicle Industry Licensing Board before it will issue or renew your motor vehicle dealer license. It is a promise, backed by a surety company, that you will follow Nebraska’s dealer laws; if you break them and cost a customer or the state money, the bond can pay them back up to $50,000. Auction dealers post a larger $100,000 bond.
Good to know - Every Nebraska motor vehicle, trailer, motorcycle, wholesale, and auction dealer must file a surety bond before the Motor Vehicle Industry Licensing Board issues or renews the license. The amount is $50,000 for motor vehicle, trailer, and motorcycle dealers and $100,000 for auction dealers (Neb. Rev. Stat. § 60-1419).
The bond is a three-way agreement. You (the dealer) are the “principal,” the Motor Vehicle Industry Licensing Board is the “obligee” that holds the bond, and the surety company backs it. It protects your customers and other dealers — not you — if you violate the Motor Vehicle Industry Regulation Act.
The amount is set by law and depends on your license type: $50,000 for motor vehicle, trailer, and motorcycle dealers, and $100,000 for auction dealers. It is not insurance for your business — if the surety pays a claim, you must pay the surety back.
You file the bond with your first license application and again with every renewal. The bond stays continuous, and the surety can only cancel it by giving 60 days’ written notice to you and the Board.
Qualification
What You Need to Qualify for a Nebraska Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You know which dealer license you are applying for — motor vehicle, trailer, motorcycle (or a combination), wholesale, or auction — because it sets your bond amount.
- You have an established place of business in Nebraska that meets state requirements and can pass an in-person inspection by a Board investigator.
- You have your surety bond ready — $50,000 for a motor vehicle, trailer, or motorcycle dealer, or $100,000 for an auction dealer. We issue the bond for you.
- If you will sell any new motor vehicles, you have your franchise agreement to include with the application.
- You can pay the state license fee electronically when you file your application.
Step by step
How to Get an Auto Dealer Bond in Nebraska: Step by Step
Choose your dealer license type
Decide which license you need — a combination motor vehicle, trailer, and motorcycle dealer license, a trailer-only or motorcycle-only license, a wholesale dealer license, or an auction dealer license. Your choice sets your bond amount: $50,000 for most dealers, $100,000 for auction dealers.
Set up an established place of business
Nebraska requires a physical, established place of business. A Board field investigator will visit and inspect it before your license is approved, so make sure it meets state requirements before you apply.
Buy your surety bond
Purchase your $50,000 dealer bond ($100,000 for auction dealers). Market Canopy issues the bond on Nebraska’s official Motor Vehicle Dealer Bond form and provides it to you to submit with your application — you do not download, complete, or sign the bond form yourself.
Complete your dealer license application
Fill out the Nebraska Dealer License Application and gather the required documents. The instructions packet lists everything the Board needs, including proof of your place of business and any franchise agreement.
Dealer License ApplicationSubmit your application, bond, and fee
File your completed application with your issued bond and pay the state license fee (electronic payment). Submit the bond together with the application to the Motor Vehicle Industry Licensing Board so it is on file before your license is issued.
Dealer License Application InstructionsPass inspection and renew each year
After a Board investigator inspects your place of business and approves it, your license is issued. Nebraska dealer licenses expire December 31, so file a renewal application with a current bond each year to keep selling.
Paperwork
Nebraska Dealer Bond Forms & Documents
The main dealer license application you complete and file with the Motor Vehicle Industry Licensing Board.
View formOfficial instructions listing the documents and steps the Board requires.
View formThe state’s official bond form. Market Canopy issues this bond for you — you do not fill it out; you submit the issued bond with your application.
View formBoard instructions on bond amounts ($50,000 dealer / $100,000 auction) and how the bond is filed.
View formYou'll also need
Cost
How Nebraska Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Nebraska sets the bond by law — $50,000 for most dealers, or $100,000 for auction dealers. What you actually pay is the premium, a small percentage of that bond amount.
Your premium is set by underwriting, mostly your personal credit and business history. Well-qualified dealers pay the lowest rates. Use the quote flow on this page for your exact price; the $400 state license fee and any other state fees are separate from the bond premium.
Worked example
Your bond amount is fixed by law at $50,000 (or $100,000 for auction dealers) — that is the coverage, not your cost. You pay only a premium, a small percentage of that amount based on your credit and history, not the full $50,000.
Filing
Filing Information
Nebraska Motor Vehicle Industry Licensing Board
Filing notes
Market Canopy issues your Nebraska dealer bond on the state’s official Motor Vehicle Dealer Bond form. You do not fill out or sign the bond form yourself — you submit the issued bond to the Motor Vehicle Industry Licensing Board together with your license application.
The bond must be in place before the Board issues or renews your license, and it runs continuously. Under the state bond form, the surety can only end the bond by giving 60 days’ written notice to you and the Board, so keep a current bond on file — including at every renewal — to avoid a lapse.
Nebraska dealer licenses run by the calendar year and expire December 31. File your renewal application with a current bond each year.
FAQ
Nebraska Auto Dealer Bond FAQ
Yes. You must file a surety bond with the Nebraska Motor Vehicle Industry Licensing Board before it issues or renews your dealer license. The amount is $50,000 for motor vehicle, trailer, and motorcycle dealers and $100,000 for auction dealers (Neb. Rev. Stat. § 60-1419).
The bond amount is $50,000 for most dealers and $100,000 for auction dealers. That is the coverage set by law, not your cost. You pay only a premium — a small percentage of the bond amount — based on your credit and history.
The Nebraska Motor Vehicle Industry Licensing Board is the obligee that holds your bond. It protects your customers and other dealers if you break Nebraska’s dealer laws. It is not insurance for your own business.
No. Market Canopy issues your bond on the state’s official Motor Vehicle Dealer Bond form and provides the completed bond to you. You simply submit the issued bond with your license application — you do not complete or sign the bond form yourself.
You file the bond with your first license application and again with every renewal. Nebraska dealer licenses expire December 31 each year, so keep a current bond on file to avoid a lapse. The surety can only cancel the bond by giving 60 days’ written notice to you and the Board.
The motor vehicle dealer’s license fee is $400 per year (Neb. Rev. Stat. § 60-1411.01). Fees for trailer, motorcycle, wholesale, and auction licenses differ. These state fees are separate from your surety bond premium.
Yes. Nebraska requires an established place of business, and a Board field investigator inspects it before your license is approved. Make sure it meets state requirements before you apply.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Nebraska Motor Vehicle Industry Licensing Board before you file. This page is informational and not legal advice.
FAQ
Nebraska Auto Dealer Bond Questions
The cost of a Nebraska 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 Nebraska 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 Nebraska 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.
