Colorado Auto Dealer Bond

Colorado Auto Dealer Bond

The Colorado Department of Revenue requires motor vehicle dealers to purchase and maintain a $50,000 surety bond for the duration they are in business. If you are a dealership salesperson, a $15,000 bond is required.

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Motor vehicle dealers that need the $50,000 bond include business disposal dealers, franchise and used vehicle dealers, franchise and used powersports vehicle dealers, wholesalers, and wholesale motor vehicle auction dealers. Small trailer dealers need a $5,000 surety bond.

How Much Does a Colorado Motor Vehicle Dealer Bond Cost?

If you need the $50,000 Auto Dealer Surety Bond, Jet’s rates start at $24 monthly, $238 for 1 year, and $416 for 2 years.

Bond TermCost
Monthly$24
1 Year$238
2 Years$416
Colorado Dealer Bond Cost

Other Colorado Dealer Bond types and their corresponding starting prices are portrayed in the chart below.

Bond TypeBond LimitMonthly1 Year2 Years
Powersports Vehicle Dealers, Wholesalers, Auction Dealers$50,000$24$238$416
Vehicle & Powersports Vehicle Salespersons$15,000$10$100$175
Franchise Small Trailer Dealers (under 2,000 lbs)$5,000$10$100$175
Colorado Misc Dealer Bond Prices

The price you are quoted is based on the bond limit, bond type, credit score, and years of experience. These factors are standard across the surety industry, as they allow the surety company to assess the risk associated with each applicant properly. Newer businesses pose slightly more risk, so your rate will improve the longer you’re in business with great financial standing.

Requirements to be a Licensed Colorado Motor Vehicle Dealer

The Colorado Motor Vehicle Board has a thorough process to become a dealer, wholesaler, or auction dealer. Here is the list license application checklist:

More details and information can be found on the Dealer and Wholesaler - Auto Industry Division page.

Why Are Surety Bonds Required for Colorado Motor Vehicle Businesses?

All businesses in the United States are regulated in some fashion to protect the public. When it comes to motor vehicle dealers, all 50 states utilize a licensing and surety bonding process to ensure that citizens purchasing vehicles are kept financially safe. 

In Colorado, the Motor Vehicle Board oversees the regulation of dealers, wholesalers, auctions, etc. The surety bond is one way for the Board to guarantee compensation to a person or entity that has incurred monetary loss as a result of a dealer’s fraud or negligence. 

Getting Your Surety Bond With Jet

Your bond is ready to be filed within 5 minutes. Click the button below to get started:

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Once you’ve filled in the necessary information, you’ll be presented with several price options—choose the one that works best for you! Put in your credit card information and your digital bond form and receipt will be ready for download. 

The bond must be submitted alongside the license application. The easiest way to do this is to download the bond form at the time of purchase and send in the bond copy. You can also request the original bond be mailed to you. Either way, you must file the bond at the address below:

Colorado Department of Revenue
Auto Industry Division
1707 Cole Blvd., Suite 300
Lakewood, CO 80401

Read More About Dealer Bond Claims and Bond Handling With Jet

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.

Colorado Motor Vehicle Dealer Bond Form Example

Colorado Auto Dealer Bond Form

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: