Arkansas Auto Dealer Bond

Arkansas Auto Dealer Bond

All motor vehicle dealers in Arkansas must hold a surety bond to be licensed. Whether you need a Used Motor Vehicle Dealer Bond or a New Motor Vehicle Dealer Bond, you can ensure you’re saving with Jet.

Get your dealer bond in minutes!

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Two obligees regulate motor vehicle licensees:

  1. Arkansas Motor Vehicle Commission—Franchise Motor Vehicle Dealers
  2. Arkansas State Police—Used Motor Vehicle Dealers

Jet provides the surety bond as a guarantee of reimbursement to those financially harmed by a dealer's illegal and/or unethical actions.

How Much Does an Auto Dealer Bond Cost in Arkansas?

At Jet, the $25,000 Used Motor Vehicle Dealer Bond has starting rates of $10 monthly or $100 for one year. For the $50,000 New Motor Vehicle Dealer Bond, prices start at $20 per month or $200 annually. Your bond cost is determined based on your bond type, bond limit, years in business, and personal credit. The monthly option can be convenient compared to paying upfront costs, especially when you have other licensing fees and business dues. 

Bond TypeBond LimitMonthly1 Year2 Years
Franchise (new) Dealers$50,000$20$200$350
New Motorcycle, ATV, Lessor, Scooter Dealers$25,000$10$100$175
Used, Wholesale, and Auction Dealers$25,000$10$100$175
Arkansas Motor Vehicle Dealer Bond Prices

Used motor vehicle dealers may file a $100,000 bond if they own several locations, rather than filing multiple bonds. New dealers will need a $25,000 bond for each branch location, in addition to the $50,000 Franchise Dealer Bond.

Why Are Surety Bonds Required for Arkansas Auto Dealers?

Between the State Police and the Motor Vehicle Commission, there are laws enforced to protect the citizens of Arkansas from irresponsible and deceptive dealer actions. Surety bonds are just one part of the regulation; other details may be read in the Arkansas Code 27-19-101 (new dealers) and 23-112-601 (used dealers).

Auto Dealer Bonds are utilized in every single state across the country. They provide a way for customers, obligees, and others to receive compensation when financial loss has occurred because of a dealer. The surety company (Jet) provides the bond as the guarantor of funds. Failing to pay fees or taxes, messing with vehicle odometers, not providing a vehicle title, and other fraudulent behavior may lead to a surety bond claim.

How to File Your Arkansas Auto Dealer Bond

Arkansas State Police

All used motor vehicle dealers, including wholesale dealers and auctions, must file the original signed bond with the application, whether for a new license or for renewal. All paperwork should be sent to the address below:

Arkansas State Police
1 State Police Plaza Dr.
Little Rock, AR 72209

Arkansas Motor Vehicle Commission

For new motor vehicle dealers, also known as franchise dealers, Jet can file the bond for you! Included within the new dealer classification are motorcycle, ATV, lessor, and scooter dealers. If any documentation needs to be sent in, the Commission is located at the following address:

Arkansas Motor Vehicle Commission
900 W. Capitol Avenue, Suite 400
Little Rock, AR 72201

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Learn More About Cancelling Your Bond and Dealer Bond Claims

How to Renew My Bond

See the in and outs surrounding renewing with Jet—it’s quick.

How to Cancel My Bond

Looking to cancel? This article has all the details you need.

Bond Claim Process

Read more about claim causes and the claim process for dealers.

Arkansas Auto Dealer Bond Form Example

Arkansas Auto Dealer Bonds

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: