This bond is for contractors who need to get a license with the CSLB. A one year $25,000 California Contractor License Bond (a.k.a CSLB bond) starts at $100. We'll e-file your bond to CSLB free of charge, the same day once bond payment is made.
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The cost of a auto dealer bond mainly depends on two factors:
Bond Limit: Every state has a specified bond amount that they require auto dealers to be bonded for. In other words, this determines the size of bond that auto dealers have to purchase. For example, given that Texas has a bond limit of $50,000 for motor vehicle bond, the amount you pay (aka bond premium) is a percentage typically between 0.5%-5% of the bond limit. Thus, a Texas dealer bond would start from $250, and could go up to $2,500 for those with poor credit.
Credit Score: this is crucial for premium amount as well as whether a potential dealer can even obtain a motor vehicle bond in the first place. Credit score reflects whether the applicant can behave in a way that is less likely to result in a claim being filed and whether the applicant can repay any potential claim.
A CSLB bond is a $25,000 guarantee required by the California State License Board for all licensed contractors. Instead of protecting the contractor, it protects the public—homeowners, employees, and suppliers—if a contractor violates state law. Think of it as a safeguard ensuring accountability and financial protection.
Contractors don’t pay $25,000 upfront. Premiums usually run $100–$500 per year for contractors with good credit, higher for riskier profiles.
