State of West Virginia - Division of Motor Vehicles Surety Bond
Required for used vehicle dealers in West Virginia to obtain and maintain their dealer license. Protects consumers from fraudulent practices and ensures compliance with state regulations.
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About This Bond
The State of West Virginia Division of Motor Vehicles Surety Bond is a $25,000 financial guarantee required for used vehicle dealers operating in West Virginia. This bond serves as a condition for obtaining and maintaining a used vehicle dealer license in the state.
Who Needs This Bond: Used vehicle dealers in West Virginia must secure this bond as part of their licensing requirements with the Division of Motor Vehicles. The bond applies specifically to dealers who sell used vehicles only, not new vehicle franchised dealers.
Protection and Purpose: The bond protects the State of West Virginia and consumers from potential financial losses due to the dealer's failure to comply with state motor vehicle laws and regulations. It ensures that dealers operate ethically and fulfill their obligations to customers, including proper title transfers, accurate vehicle representations, and adherence to warranty requirements.
Bond Terms: This is an annual bond with a term running from July 1 to June 30 each year, aligning with the state's licensing period. The bond is renewable annually and must remain active throughout the dealer's license term. Dealers must provide an estimate of monthly vehicle sales as part of the bonding process.
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At a glance
West Virginia Auto Dealer Bond Key Facts
Governed by W. Va. Code §17A-6-4.
The basics
What Is an Auto Dealer Bond in West Virginia?
A West Virginia auto dealer bond is a $25,000 surety bond that most motor vehicle dealers must file with the West Virginia Division of Motor Vehicles (DMV) before it will issue a dealer license (W. Va. Code §17A-6-4). It is a promise, backed by a surety company, that you will run your dealership honestly. If you commit fraud that causes a financial loss to a buyer, a seller, a lender, or the State of West Virginia, the bond can cover that loss up to $25,000.
Good to know - West Virginia requires most motor vehicle dealers to file a $25,000 surety bond, in the name of the State of West Virginia, before the DMV will issue a dealer license (W. Va. Code §17A-6-4). The bond is filed on DMV Form MV-126-DS-P. A few license classes are exempt — a repossessor/financial institution (repo), a manufacturer (mfg), and a transporter (trs) — so the requirement is treated as conditional. New and used vehicle dealers should plan on the bond.
The bond is a three-way promise. You (the dealer) are the “principal,” the State of West Virginia is the “obligee” the bond protects, and a surety company backs it. It is not insurance for your business — it protects your customers and the state. If the surety pays a claim because you broke the rules, you must pay the surety back.
West Virginia sets the amount at $25,000 for standard dealer licenses. A few license classes do not need the bond at all — a repossessor or financial institution (repo), a manufacturer (mfg), or a transporter (trs). If you are a new or used vehicle dealer, plan on the $25,000 bond.
The bond is only one piece of getting licensed. West Virginia also requires 20/40/10 dealer liability insurance (at least $20,000 for injury to one person, $40,000 per accident, and $10,000 for property damage), a $150 Dealer Recovery Fund fee, photos of your lot and sign, a personal property tax receipt, and a valid state business license. A DMV inspector also visits your lot and fingerprints the owners before your license is issued.
Qualification
What You Need to Qualify for a West Virginia Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for a West Virginia dealer license class that needs the bond — a new or used motor vehicle dealer — and not an exempt class such as a repossessor/financial institution (repo), a manufacturer (mfg), or a transporter (trs).
- You have an established place of business in West Virginia, with photos of the lot and a sign whose letters are at least four inches tall.
- You carry 20/40/10 dealer liability insurance — at least $20,000 for injury to one person, $40,000 per accident, and $10,000 for property damage.
- You can show a personal property tax receipt for each owner or corporate officer, or a county affidavit that no personal property tax is owed, plus a valid West Virginia business license.
- You are ready to be fingerprinted at the DMV pre-inspection of your lot and to pay the state fees that are separate from the bond, including the $150 Dealer Recovery Fund fee.
- You have your $25,000 dealer bond ready — we issue it for you on the DMV’s official MV-126-DS-P bond form, in the name of the State of West Virginia, so you do not fill out a bond form.
Step by step
How to Get an Auto Dealer Bond in West Virginia: Step by Step
Confirm your dealer license class
Decide which West Virginia dealer license you need. A new or used motor vehicle dealer must post the $25,000 bond, while a repossessor/financial institution (repo), a manufacturer (mfg), and a transporter (trs) are exempt from the bond. Make sure you apply for the license class that fits your business.
Request your dealer application package
West Virginia does not post the initial dealer application online. Call DMV Dealer Services at (304) 926-0705 or email DMVDealers@wv.gov to ask for the minimum requirements. The DMV then schedules a pre-inspection of your lot, where the inspector brings your application package, fingerprints each owner or corporate officer, and has you sign a release-of-information waiver.
Set up your lot, insurance, and documents
Prepare an established place of business with a sign whose letters are at least four inches tall, and take clear photos of the lot and sign. Line up 20/40/10 dealer liability insurance, a personal property tax receipt for each owner or officer (or a county affidavit that no tax is owed), and a valid West Virginia business license.
Buy your $25,000 dealer bond
Purchase your West Virginia dealer bond. Market Canopy issues the $25,000 bond on the DMV’s official MV-126-DS-P bond form, in the name of the State of West Virginia, through a surety company licensed in the state — you do not download, complete, or sign a bond form yourself.
Submit your application, bond, and state fees
Turn in your completed application with your $25,000 bond, proof of 20/40/10 insurance, your lot and sign photos, your personal property tax receipt, and your West Virginia business license. Pay the $150 Dealer Recovery Fund fee and the dealer license fee. The DMV reviews everything and issues your dealer license and plates.
Keep your bond and license current each year
The West Virginia dealer license year runs January 1 through December 31. Renew your license each year with the Dealer Renewal Application, pay the annual $150 Dealer Recovery Fund fee, and keep your bond in force the whole time so your coverage never lapses.
Dealer Renewal Application (DMV-126-E-DS)Paperwork
West Virginia Dealer Bond Forms & Documents
The DMV application you complete and submit to renew your West Virginia dealer license each year.
View formA Dealer Services application form ($25 fee, plus $1 for each additional business location). Confirm with Dealer Services which application your dealer class needs, since the initial dealer package is usually delivered at your pre-inspection.
View formShows how many dealer plates you qualify for. Dealer plates are $5 each.
View formUse this DMV form to request more dealer plates for your dealership.
View formThe official $25,000 dealer bond form. Market Canopy issues this bond for you in the name of the State of West Virginia and files it — you do not fill it out.
View formThe DMV’s full list of dealer forms, including applications, plate forms, and the surety bond form.
View formYou'll also need
Cost
How West Virginia Auto Dealer Bond Pricing Works
You do not pay the full $25,000. West Virginia sets the dealer bond at $25,000 — that is the coverage the bond provides, not your cost. What you actually pay is the premium, a small percentage of that $25,000.
Your premium is set by underwriting, mostly your personal credit and business history. Use the quote flow on this page for your exact price. Your state fees — the $150 Dealer Recovery Fund fee, the dealer license fee, and any dealer plate fees — are all separate from the bond premium.
Worked example
Your bond amount is fixed by the state at $25,000 — that is the protection the bond provides, not your cost. You pay only a premium, a small percentage of that $25,000 based on your credit and history, not the full $25,000.
Filing
Filing Information
West Virginia Division of Motor Vehicles (DMV) — Dealer Services
Filing notes
Market Canopy issues your $25,000 West Virginia dealer bond on the DMV’s official surety bond form (MV-126-DS-P), in the name of the State of West Virginia, through a surety company licensed in the state. You do not fill out or sign the bond form yourself.
West Virginia does not post the initial dealer application online. Call DMV Dealer Services at (304) 926-0705 or email DMVDealers@wv.gov to request the minimum requirements. The DMV then sets up a pre-inspection of your lot, and the inspector brings your application package, fingerprints each owner or corporate officer, and has you sign a release-of-information waiver.
Submit your $25,000 bond, proof of 20/40/10 dealer liability insurance, your personal property tax receipt (or a county affidavit that no tax is owed), photos of your lot and sign, and your West Virginia business license with the application. New and renewing dealers also pay a $150 Dealer Recovery Fund fee.
The West Virginia dealer license year runs January 1 through December 31. Keep your bond in force for the full license year and renew it on time so your coverage never lapses — we renew the bond for you each term.
FAQ
West Virginia Auto Dealer Bond FAQ
Yes, for most dealers. A new or used motor vehicle dealer must file a $25,000 surety bond, in the name of the State of West Virginia, before the DMV will issue a dealer license (W. Va. Code §17A-6-4). A few license classes are exempt — a repossessor/financial institution (repo), a manufacturer (mfg), and a transporter (trs).
The bond amount is $25,000. That is the coverage set by the state, not your cost — you pay only a premium, a small percentage of the $25,000, based on your credit and history. Use the quote flow on this page for your exact price.
It protects the State of West Virginia and the public — buyers, sellers, and lenders — against fraud by the dealer, up to $25,000. It is not insurance for your business. If the surety pays a claim, you repay the surety.
No. Market Canopy issues your $25,000 bond on DMV Form MV-126-DS-P, in the name of the State of West Virginia, through a surety company licensed in the state, and files it for you. You do not download, complete, or sign the bond form.
No. West Virginia also requires 20/40/10 dealer liability insurance, a $150 Dealer Recovery Fund fee, photos of your lot and sign, a personal property tax receipt (or a county affidavit that no tax is owed), and a valid business license. A DMV inspector visits your lot and fingerprints the owners before your license is issued.
It is a $150 annual fee that new and renewing dealers pay in addition to the license fee, under W. Va. Code §17A-6-2A. The Dealer Recovery Fund is separate from your surety bond and helps pay eligible claims against a licensed dealer. Confirm the current amount with DMV Dealer Services.
The West Virginia dealer license year runs January 1 through December 31, so you renew every year. Keep your bond in force for the full license year and renew it on time so your coverage does not lapse — we renew the bond for you each term.
Sources
Last verified 2026-07-02. Requirements change - confirm current details with West Virginia Division of Motor Vehicles (DMV) — Dealer Services before you file. This page is informational and not legal advice.
FAQ
West Virginia Auto Dealer Bond Questions
The cost of a West Virginia 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 West Virginia 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 West Virginia 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.
