Auto Dealer Bonds

In all 50 states, motor vehicle dealers must hold a surety bond to be licensed. The state requires the bond as a guarantee of reimbursement to anyone who has experienced financial harm as the result of a dealer’s illegal and/or unethical actions.

Jet Insurance Company has helped thousands of dealers with their Motor Vehicle Dealer Bond. Get your bond with Jet in minutes online!

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Bond requirements vary depending on state regulations, types of vehicles being sold, and other factors, and we understand the essentials for each surety bond needed to get and maintain your dealer license. 

Jet’s direct distribution model eliminates middlemen agents and brokers to deliver the quickest service possible and best claims defense, should it be needed.

How Much Does a Motor Vehicle Dealer Bond Cost?

The bond premium you are quoted is based on the bond type, bond limit, your personal credit, and years of experience. The cost is only ever a small percentage of the total bond limit. The bond limit (or bond amount) is the maximum amount that can be paid out in claims within the bond’s term.

The chart shows example starting prices for a $25,000 Auto Dealer License Bond.

Credit TierMonthly1 Year
Super-preferred$10$100
Preferred$25$250
Standard$50$500
$25,000 Auto Dealer Bond Price Examples

*Prices shown are not an offer—your rate must be approved through underwriting.

With Jet, you can choose from monthly, annual, and multi-year options. We are the only surety carrier to offer a true month-to-month payment plan—pay a low cost each month and cancel at any time.

What Is the Purpose of Auto Dealer Bonds?

Regulatory agencies (obligees), such as the California Department of Motor Vehicles or the Florida Department of Highway Safety and Motor Vehicles, utilize surety bonds as one of the licensing requirements for motor vehicle dealers (principals). 

Motor Vehicle Dealer Bond

The principal (vehicle dealer) must go through the obligee (regulator) to get licensed. The obligee relies on a third-party surety company (Jet Insurance Company) to guarantee funds through the bonds should a claim be filed on the dealer license bond due to fraudulent or negligent dealer actions.

Speaking of which, claims can be filed for many reasons. Still, generally, you should be able to rectify the situation with the customer or the obligee prior to any serious action being taken. A bond claim is a serious action that represents a failure of a dealership to uphold its duties as a licensed business. Oftentimes the surety bond claim is just a part of the dealership going out of business in a scandalous nature.

A couple of claim examples include floor plan fraud, tampering with a vehicle’s odometer, and failing to deliver a title. To learn more about claim details and processes, read our Motor Vehicle Dealer Bond Claims Guide.

Types of Auto Dealer Surety Bonds

Depending on the type of vehicles you deal in, the surety bond requirement will vary. The common types of surety bonds for auto dealers include (this will vary greatly depending on the state you need the bond in):

In addition to those selling vehicles, there are other auto-related businesses that may need a surety bond to operate, such as automotive recyclers, wreckers, brokers, distributors, manufacturers, etc.

Examples

In California, a $50,000 bond is required for new and used motor vehicle dealers, lessor-retailers, and wholesalers selling 25+ vehicles a year. While new and used motorcycle dealers, new and used all-terrain vehicle dealers, and wholesale dealers selling 24 or fewer vehicles a year need a $10,000 bond.

Nevada auto dealers and brokers need to hold a $100,000 surety bond for the duration of their operations. Motorcycle dealers, off-highway dealers, and trailer dealers (trailers over 3,500 lbs.) are required to file a $50,000 bond. Those selling boat trailers and trailers under 3,500 lbs. are mandated to obtain a $10,000 bond.

Those selling vehicles in Florida must file a $25,000 Motor Vehicle Dealer Bond, regardless of vehicle type. However, Jet’s rates vary depending on the type of business you’re running, e.g. used, wholesale, auction, franchise, or salvage dealer.

In most cases, an additional bond is required for other business locations.

Dealer Surety Bond Process

You can get your bond in just a few minutes with Jet. 

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Once you’ve filled in the necessary information, you’ll be given quote options—choose the one that works best for you, provide your credit card payment, and you are done! Your bond form and receipt will be available for download immediately following successful payment.

Jet will take care of the bond filing for you, when applicable. However, some obligees require you to mail in the original signed bond with your application, especially if you are a new licensee. In this case, we will mail the bond to you. If you need the bond in a pinch, we offer a next-day shipping option for a small fee.

Additional Auto Dealer License Bond Information

How to Renew My Bond

Renewing your bond has never been easier. Read renewal information here.

How to Cancel My Bond

You can cancel your bond at any time with Jet. Details here.

Bond Claim Process

Read more about motor vehicle dealer bond claims here.

Auto Dealer Bond Requirements by State

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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: