Nebraska Auto Dealer Bond

A Nebraska auto dealer bond, formally called a Motor Vehicle, Trailer, Wholesale, or Motorcycle Dealer Bond, is a surety bond required by the Nebraska Motor Vehicle Industry Licensing Board before your dealer license can be issued.

It is a financial guarantee that your dealership will operate in compliance with Nebraska law and deal honestly with customers. If you fail to do so, a harmed customer or another dealer can make a claim against your bond to recover losses.

Unlike insurance, which protects you, a surety bond primarily protects your customers, other dealers, and the state. If a valid claim is paid out, you are responsible for reimbursing the surety company.

Every surety bond is a contract between 3 parties:

• The Obligee: Nebraska Motor Vehicle Industry Licensing Board
  The state authority that requires the bond as a condition of licensing. They set the bond amount and terms.
• The Principal: You, the dealer
  You purchase the bond and are bound by its terms. If a valid claim is paid, you must reimburse the surety.
• The Surety: such as Lance Surety Bonds
  We underwrite the bond and guarantee payment to claimants up to the bond amount if you default on your obligations.

1. Submit Your Bond Application

You can apply for your bond online. Just enter some basic information about yourself and your business, and you should be able to submit your application within a matter of minutes. If you have any questions, we are more than happy to assist you.

2. Get a Quote

At Lance Surety Bonds, we want to provide you with the best premium rate possible. For most applicants with a strong credit history, a quote is ready within minutes. More complex applications may take up to 24 hours.

3. Purchase Your Bond

Once you receive your quote, you can pay the bond premium and you’re officially bonded in Nebraska. You’ll receive an email copy of the bond, and you can request a paper copy if necessary.

4. File Your Bond with the Nebraska Motor Vehicle Industry Licensing Board

Submit your bond with your initial dealer license application or renewal application to the Nebraska Motor Vehicle Industry Licensing Board. Nebraska requires the bond to be signed by a Nebraska-registered agent.

Filing address:

Nebraska Motor Vehicle Industry Licensing Board

301 Centennial Mall South

P.O. Box 94697

Lincoln, NE 68509-4697

The Nebraska Motor Vehicle Industry Licensing Board requires the following dealer applicants to post a surety bond before receiving or renewing a license.

Nebraska dealer bond amounts are set by Nebraska Revised Statute § 60-1419, which requires a $50,000 bond for motor vehicle, trailer, and motorcycle dealer applicants and a $100,000 bond for motor vehicle auction dealer applicants.

• Motor vehicle dealers - New and used vehicle dealers must post a $50,000 bond.
• Combination dealers - Dealers licensed for motor vehicles, motorcycles, and trailers must post a $50,000 bond.
• Trailer-only dealers - Nebraska applies the same $50,000 bond requirement to trailer-only dealer applicants.
• Motorcycle-only dealers - Motorcycle-only dealers also fall under the $50,000 dealer bond requirement.
• Wholesale dealers - Nebraska’s dealer bond form covers wholesale dealers under the $50,000 bond.
• Auction dealers - Motor vehicle auction dealers must post a separate $100,000 auction dealer bond.

The bond protects consumers and other dealers from financial loss caused by dealer fraud, misrepresentation, or failure to meet Nebraska dealer obligations. 

A claim can be filed for violations such as:

• Substituting a motor vehicle or trailer other than the one selected by the purchaser
• Failing to deliver a clear and marketable title
• Misappropriating funds belonging to the purchaser
• Altering information to deceive a purchaser about the year or model of a vehicle or trailer
• Making false or fraudulent representations about a motor vehicle or trailer

The maximum payout is the bond’s penal sum: $50,000 for most Nebraska dealer licenses and $100,000 for auction dealer licenses. After any payout, you as the principal are liable to reimburse the surety.

How the Claims Process Works?

• Consumer, dealer, or claimant contacts the surety company directly to file a claim
• The surety investigates the claim to determine its validity
• If the claim is valid, the surety pays the claimant up to the bond’s penal sum
• The dealer or auction dealer is then required to reimburse the surety for any amounts paid out
• Claims on your record will significantly increase your bond premium at renewal

Nebraska dealer licenses are issued for the calendar year and expire on December 31 of the year they are issued. Your bond must be renewed and submitted with your license renewal to keep your license active.

The Nebraska Motor Vehicle Industry Licensing Board opens the online renewal portal each year on October 1. Combination dealer renewals can require a new bond, Certificate of Liability Insurance, continuing education records, a vehicle sales report, and workers’ compensation documents when applicable.

Lance Surety will contact you before your renewal deadline so you can renew your bond without a lapse. The renewal premium must be paid before the new bond takes effect.

Getting a Nebraska auto dealer license starts with the online application through the Nebraska Motor Vehicle Industry Licensing Board. The application indicates whether you are applying for a combination dealer license, trailer-only dealer license, or motorcycle-only dealer license.

Nebraska dealer licenses cover new and used motor vehicles, motorcycles, and trailers. New vehicle dealers must also include their franchise agreement with the application.

As of January 1, 2026, non-franchise dealer applicants must submit certificates showing eight hours of approved dealer education completed within the previous 12 months. Trailer-only dealers are exempt from this new education requirement.

After your application is submitted and all requirements are met, a Board investigator will schedule an inspection of the dealership. Once approved, the Board issues the dealer license and Treasurer’s Certificate, which authorizes the County Treasurer to issue dealer plates.

For more information on how to get the license, check our guide: Nebraska auto dealer license.

How long does it take to get a Nebraska dealer bond?

For most applicants, bonds are issued the same day, often within minutes of completing the application. Your bond is delivered digitally by email. If you need a paper copy for your records or filing process, we can mail it to you.

What is the difference between the bond amount and the bond premium?

The bond amount, also called the penal sum, is the maximum protection offered to consumers or other claimants. Nebraska requires a $50,000 bond for motor vehicle, trailer, wholesale, and motorcycle dealers, and a $100,000 bond for auction dealers. The bond premium is the annual cost you pay to purchase the bond.

What happens if my bond lapses?

If your bond lapses, you are no longer in compliance with Nebraska dealer licensing requirements. Because dealer licenses expire on December 31 and bond documents are required with renewal, a lapse can delay renewal or leave your license unsupported by the required bond.

Can my bond be cancelled?

Yes. The Nebraska dealer bond form allows the surety to cancel the bond by giving 60 days’ written notice to the principal and the Nebraska Motor Vehicle Industry Licensing Board. If the bond is cancelled and not replaced, the dealer license is no longer properly supported by the required bond.

Do trailer-only and motorcycle-only dealers need a bond?

Yes. Nebraska applies the $50,000 Motor Vehicle, Trailer, Wholesale, or Motorcycle Dealer Bond requirement to trailer-only and motorcycle-only dealer applicants.

Do auction dealers need the same bond as motor vehicle dealers?

No. Nebraska requires a $100,000 Motor Vehicle Auction Dealer Bond for auction dealer license applicants. Standard motor vehicle, trailer, wholesale, and motorcycle dealers require a $50,000 bond.