Georgia used car dealers must carry a $50,000 surety bond (raised from $35,000 effective July 1, 2026) and garage liability insurance with at least $50,000 per person, $100,000 per accident and $25,000 property damage. Both must match your exact licensed business name and location.
Georgia dealer surety bond rules
A surety bond protects customers if a dealer breaks the law. It is not insurance for you. It is a guarantee that the surety can pay a claim, and you may have to repay the surety.
- Amount: $50,000 for a used motor vehicle dealer. Older articles still say $35,000, which was the earlier amount.
- Form: You must use the Board's bond form with a power of attorney attached. Submit the original signed bond.
- Name match: The name on the bond must exactly match your application and your Secretary of State registration.
- Each location: A separate bond and power of attorney is needed for each licensed location.
- Term: The bond must stay in effect for the entire licensure period, and bond dates follow the state renewal cycle (ending September 30), not the date you bought it.
- Cancellation: Cancelling requires certified written notice to the Board at least 30 days in advance.
How much does the bond cost?
You do not pay $50,000. You pay a premium, a percentage of the bond amount, based mostly on your credit score. One bond provider reports pricing starting around $250 for a two-year term for strong credit. Lower credit can mean a higher premium. Get quotes from more than one licensed surety agent, and confirm the current bond amount with the Board before buying.
Garage liability insurance
Georgia requires garage liability coverage. A standard auto policy alone does not qualify.
| Requirement | Detail |
|---|---|
| Bodily injury per person | $50,000 minimum |
| Bodily injury per accident | $100,000 minimum |
| Property damage | $25,000 minimum (some sources also describe a $125,000 combined single limit) |
| Certificate holder | Georgia Board of Used Motor Vehicle Dealers |
| Insured name and location | Must match your application exactly |
| Document | Original certificate (ACCORD form) with policy number |
Insurance must be in place before you apply. Many providers also cover dealer plates in the policy, so ask about it when you get quotes. If you add a second location, you need an amended certificate.
Common bond and insurance mistakes
- Name differences such as "LLC" missing or a DBA on one document and not another.
- Wrong certificate holder on the insurance certificate.
- Buying personal auto insurance instead of garage liability.
- Using an old $35,000 bond form.
- Letting coverage lapse mid-license.
Call the Board at (404) 424-9966 or check the Secretary of State site to confirm current amounts before you buy.
Official sources
- Georgia State Board of Registration of Used Motor Vehicle Dealers (Secretary of State)
- Secretary of State: How-to guide for used motor vehicle dealers
- Georgia Department of Revenue: Dealer registration (dealer license plates)
- GIADA: Pre-license class
Frequently asked questions
What is the surety bond amount for a Georgia dealer license?
The Georgia used motor vehicle dealer surety bond is $50,000, up from $35,000 effective July 1, 2026. Confirm the current amount with the State Board before buying.
How much does a Georgia dealer bond cost?
You pay a premium, not the full bond amount. Pricing depends on credit. One provider reports bonds starting around $250 for a two-year term.
What insurance do I need for a Georgia dealer license?
Garage liability insurance with minimum limits of $50,000 per person, $100,000 per accident and $25,000 property damage. Regular auto liability alone is not acceptable.
Who is the certificate holder on the insurance?
The certificate holder must be the Georgia Board of Used Motor Vehicle Dealers, and the name and location must match your application.
Do I need a separate bond for each lot?
Yes. Each licensed location needs its own bond form and power of attorney, and an amended insurance certificate.
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