Designated Agent and Deputy Registrar Bonds
If you process vehicle title and registration work for a state, your bond depends on the state and on your role. In Alabama, non-dealers need a $50,000 designated agent bond, and a licensed dealer’s bond satisfies the requirement. Minnesota’s comparable role is the deputy registrar. Ashton Agency can help you work out which requirement applies to you.
Questions about your bond? Call our East Coast team at (800) 451-4854 or our West Coast team at (800) 452-2663, or use the quote form below.
What Is a Designated Agent Bond
This bond backs the duties that come with processing vehicle title and registration work on a state’s behalf. Alabama’s motor vehicle bond form covers those duties under its vehicle and manufactured-home title laws. In Minnesota, the bond secures faithful discharge of a deputy registrar’s duties and the motor vehicle taxes and fees collected for the state.
The bond has three parties: the business or individual required to obtain it (the principal), the surety company that issues it, and the state agency that requires it (the obligee). Ashton helps arrange the bond but isn’t one of those three parties. If the surety pays a valid claim, the principal has to pay the surety back.
Who Needs One and What It Covers
Alabama
Alabama lets several types of businesses apply to process title applications as a designated agent, including licensed vehicle dealers, certain financial institutions, pawnshops, insurers, and towing companies. Some other categories can handle only manufactured-home transactions. If you’re not a dealer, the Alabama Department of Revenue specifies a $50,000 bond. If you already hold a dealer license, your dealer bond satisfies the designated-agent requirement, so you don’t need a separate one. You also need approval and training before you can process titles. The Department directs applicants to MyDMV and requires designated-agent training before it grants access.
Minnesota
Minnesota doesn’t use the term designated agent. The comparable role is a deputy registrar, appointed by the Commissioner of Public Safety to handle vehicle registration and title work through Driver and Vehicle Services. A deputy registrar who isn’t a county or city employee gives the state a bond of $10,000 or a larger sum the Commissioner requires, conditioned on faithful discharge of duties (Minn. Stat. 168.33). By rule, the amount is the greater of $10,000 or two days of collected taxes and fees, rounded up to the next $5,000. A new office uses projected collections, and an existing office uses actual collections. It is recalculated after the first 24 months for a new office and every five years after that. The bond is continuous, and an office that is also a driver’s license agent carries a separate additional bond.
Alabama and Minnesota at a glance:
| State | Bond amount |
|---|---|
| Alabama | $50,000 for non-dealers |
| Minnesota | $10,000 minimum, set from the office’s projected (new) or actual (existing) collections |
Why Choose Ashton Agency
Plain answers
Title-processing rules can be confusing. You can talk through your situation with an actual member of the Ashton team.
Rates compared
We work with more than one carrier, so we can compare the bond options and rates available to you.
Alabama and Minnesota
We write this bond in both states, and we’re licensed nationwide if your business reaches further.
Sixty years of bonds
Ashton has been writing bonds since 1966.
Frequently Asked Questions
Does every designated agent need a separate bond?
No. Alabama says a dealer’s regulatory license bond satisfies the designated-agent requirement. Non-dealers need the specified $50,000 bond.
Who can apply to be a designated agent in Alabama?
Alabama allows several kinds of businesses, including licensed vehicle dealers, certain financial institutions, pawnshops, insurers, and towing companies. Some other categories can handle only manufactured-home transactions.
Does the $50,000 bond mean I’ll pay $50,000?
No. The $50,000 is the bond amount Alabama sets for non-dealers. What you pay is a separate premium, quoted for your business.
Can anyone apply to be a Minnesota deputy registrar?
No. Deputy registrars are appointed by the Commissioner of Public Safety, so this bond is for appointees. Ask Driver and Vehicle Services about the appointment process and the bond amount for your office.
Can I process titles as soon as the bond is issued?
No. The bond alone doesn’t grant access. In Alabama you need approval and designated-agent training. In Minnesota you need your appointment.
Request a Designated Agent Bond Quote
Tell us about your business and we’ll follow up with a real quote.