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View All Dealer License, General FAQs

What are the insurance requirements?

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:

$25,000 bodily injury/person/accident
$50,000 combined bodily injury/accident
$25,000 property damage/accident or a combined single limit of $75,000/accident
(Section 402-12-392, Code of Alabama 1975)

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business.

Minimum insurance limits are:

  • $25,000 bodily injury/person/accident
  • $50,000 combined bodily injury/accident
  • $25,000 property damage/accident or a combined single limit of $75,000/accident

(§402-12-392, Code of Ala. 1975)

Related FAQs in Dealer License, General

Designated Agent Qualification Requirements:

  • Licensed Alabama motor vehicle dealers must have a current dealer license.
  • Licensed financial institutions – Submit a copy of their Title 5, Chapter 19, State Banking License or equivalent.
  • Pawnshops – Submit copy of Alabama Pawnshop License.
  • Insurance companies
  • Towing companies
  • Out of state financial institutions (manufactured homes only) – Submit copy of company’s State business or regulatory license.
  • Law Firms (manufactured homes only) – Submit copy of document evidencing that a principal of the firm is admitted to the State Bar.
  • Title Agents (manufactured homes only) – Submit copy of certificate of authority issued by the Alabama Department of Insurance.

Apply to become a designated agent by visiting MyDMV and Register as an Alabama Partner. Please note: the dealer regulatory license bond satisfies the Designated Agent bonding requirement. Non-dealers are required to post a surety bond in the amount of $50,000, payable to the State of Alabama.

When the application is approved by ALDOR the Designated Agent account will be set up in MyDMV.

All designated agents are required to complete their Designated Agent Training courses online before their access is granted. Once the training is complete the Designated Agent is allowed to process title applications through MyDMV.

 

Passwords are not stored in our system, please click on “Forgot username or password” and a confirmation email will then be sent with a link to reset the password.

No. The applicant must have an established place of business in Alabama. Please click on the link below for the established place of business requirements.

https://www.revenue.alabama.gov/ultraviewer/viewer/basic_viewer/index.html?form=2021/12/810-5-12-.01-Clean.pdf

Please click “Forgot Your User Name” and when prompted enter your email address on file. An email will be sent with your username.

No, all documents should be uploaded to MyDMV.

Applications for an Alabama dealer regulatory license must be submitted to the department electronically through the Alabama Partner Registration available in MyDMV.

Upon submission of the license application, a transmittal sheet will be provided that lists which documents must be submitted to the department.

Note: If there are outstanding liabilities resulting from penalty assessments for license plates, licenses will not be renewed.