Pennsylvania MVD Bond

Pennsylvania MVD Bond

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A Pennsylvania MVD Bond is a type of surety bond required by the Pennsylvania Department of Transportation (PennDOT) Motor Vehicle Department (MVD) to ensure compliance with the state's motor vehicle laws and regulations. The bond protects the state from any financial losses incurred due to a licensee's failure to comply with the state's motor vehicle laws and regulations. The bond must be obtained from a surety company by the licensee and must remain in effect for the entire length of their license. The surety company issuing the bond guarantees that if any losses occur due to the licensee's failure to comply, the surety company will cover the cost of those losses up to the amount of the bond. The licensee is responsible for any losses beyond the amount of the bond.

What is an Pennsylvania Dealer Bonds and related services? 

Pennsylvania  requires several different bonds for Manufacturer/Dealer, Messenger Service, Full Agent, Salvor and car agents. The bonds ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed. The conditions of this obligation is that if the Principal, during the term of this bond or any renewal, in conduct of the business of manufacturer, dealer, full agent, card agent, messenger service, and/or salvor shall comply with the provisions of the law and regulations governing the conduct of such business and shall not cause any monetary loss to the Commonwealth in connection with the business limited to fees, sales tax and monetary penalties, then this obligation shall be null and void; otherwise it shall remain in full force, virtue, and effect.

Required bond amount:

The required bond amount must be maintained at all times, with no exceptions. If, at any time, the amount for which the Principal is bonded shall fall below the required amount, the Principal’s authorization to operate in accordance with the applicable regulations shall be void.

Manufacturer/Dealer: $20,000 for each place of business

Messenger Service: $50,000 - Additional $50,000 per branch office.

Full Agent: $30,000 for each place of business

Salvor: $10,000 for each place of business

Card Agent: $3,00

The State requires a Car Dealer bond for each license you hold:  

$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and for all other types of dealers

Different parts of a bond:

There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Pennsylvania MVD Bond Requirements and Information:

The bond form and requirements:


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