The Motor Vehicle Division of the Alabama Department of Revenue (ALDOR) requires automotive dismantler and parts recycler businesses to be licensed to legally operate. The $50,000 Automotive Dismantler Bond must be obtained as a requisite of the Dismantler License application process.
The Automotive Dismantler Bond is provided by Jet Insurance Company as a layer of assurance to the Motor Vehicle Division that the dismantler and/or parts recycler will abide by the regulations of their license, as well as the associated state legislative codes. Should these obligations not be met and damages caused, Jet will provide compensation to the injured party.
If you are looking to apply for or renew a Dismantler License, the Jet team can help you obtain the required Vehicle Dismantler Bond quickly and at an affordable price!
With Jet, our rates are based on a small percentage of the $50,000 bond limit and a soft credit check of the applicant, therefore rates for the Automotive Dismantler Bond start as low as $375 annually or $38 monthly. We also offer multi-year terms for those looking to save a buck. Take a look at the chart below for additional preferred credit price examples.
For those looking to keep your Dismantler License for the long haul, Jet’s monthly rate offer is a great option for you! Just set up your preferred account for monthly payments and your bond will remain active with your license for as long as you’d like
The Automotive Dismantler Bond is required by the Motor Vehicle Division to act as a legal tool to ensure that the dismantler and parts recycler businesses will follow the rules and regulations of their Dismantler License, which includes proper reporting and record keeping of purchases, sales, and the dismantling of all motor vehicles. The surety bond also acts as an assurance that the Alabama Department of Revenue will not be fiscally liable for the licensees actions.
The main concern is a dismantler taking apart a car that someone has ownership interest in and that person not being too happy about their vehicle being in pieces. In cases of violations that result in financial losses to the public, the damaged party will be reimbursed through the financial guarantee of the surety bond provided by Jet Insurance Company.
Jet’s bond applications are easy to fill out and only take a few minutes to complete. The Automotive Dismantler bond application will ask for your contact information and social security number for a soft credit check ? don't worry, this won't have an affect on your credit score.
Once you have received your approved rate, simply choose your preferred bond term and complete payment. We will then send you a copy of your bond form and the receipt for your records. The Jet team tries its best to make the process stress free and takes care of the remaining bond filing steps for you!
You have the option of Jet filing the bond for you! The original, signed and sealed Automotive Dismantler Bond is required to be filed with the ALDOR’s Motor Vehicle Division. The bond must remain on file in order to maintain an active Dismantler License.
If you would like to send in your bond yourself, this option can be selected upon check. The original, signed bond form and any additional paperwork must be sent to the following mailing address.
Alabama Department of Revenue
Motor Vehicle Division
PO Box 327643
Montgomery, AL 36132-7643
For first-time applicants of the Dismantler License, the application can be submitted completely online through the Motor Vehicle Division License Portal. Further details about license requirements can be found on the “Steps Necessary to Become an Automotive Dismantler” webpage.
You may cancel your bond at any time so this is not a problem! Simply send us a written request to [email protected], and we will immediately start the bond cancellation process. Notice of your bond’s termination will be filed with the Motor Vehicle Division. Once received, liability will be released within 60 days.
For dismantler and parts recycler businesses who choose to pay in full and up front, Jet will send you a reimbursement for any available premium left on your bond term. Monthly bondholders will simply have their payments cease once the 60-day grace period has officially ended.
The Automotive Dismantler Bond is continuous, so it will need to be renewed upon the bond terms expiration date, but if you choose our monthly option, you won't have to worry about renewing! Payments will continue to come out of your preferred bank account until cancellation is sought.
A renewal invoice will be sent out well in advance of your bond term’s expiration date for those who choose our annual or multi year payment option. There is no extra paperwork or added on renewal fees, standard payment is all this is needed.
The best way to avoid violations that may cause bond claims is to educate yourself on your field. Regulations can be found in the Alabama Legislature Title 40, Chapter 12, Article 9 as it pertains to the dismantler and parts recycler industry, as well as the terms of the Dismantler License. Failure to uphold such obligations may lead to the Motor Vehicle Division charging up to $1,000 fines per a violation, a loss of license, misdemeanor charges, and possible county jail time. A damaged party is also legally entitled to civil action in the pursuance of a claim on your bond.
However, claims on the Automotive Dismantler Bond typically only occur if someone has suffered a financial loss due to the licensee committing a violation. For example, dismantlers are expected to properly report all purchases of motor vehicles within their business to the Motor Vehicle Division before dismantling of the vehicle is performed.
This is done to ensure that the vehicle is free of any liens. In cases of the licensee failing to complete this step, they may have just dismantled and sold parts of a vehicle that is owned by someone that has not given permission to do so. If that someone later makes a claim to this vehicle, the dismantler has seemingly destroyed their property and now owes them for the value of the vehicle.
The licensee can resolve this problem by simply reimbursing the vehicle owner for damages done, but if the dismantler refuses to do so or just is unable to do so, the owner may report them to the Motor Vehicle Division and take civil action.
If the state judge rules in favor of the claimant, the licensee’s Automotive Dismantler Bond will be used to cover the damages caused. It is in your best interest to resolve all possible violations with the public and/or the Motor vehicle Division before a pricey bond claim and loss of license ensues.
If you receive a court ordered claim notice, immediately contact Jet with all available information and documentation as we will use it to defend you through our own investigation of the bond claim. Should the claim prove to be valid on both sides, Jet Insurance Company is legally obligated by the Automotive Dismantler Bond form to make payment up to the $50,000 limit.
Unlike insurance, the surety bond acts a fiscal guarantee and does not release the licensee from damages caused. You will be fully responsible for paying Jet back for the paid out claim. Failure to do so will lead to future difficulties obtaining surety bonds in Alabama, specifically the Automotive Dismantler Bond which is required in order to become a legally licensed business.