District of Columbia Auto Dealer Bond

The District of Columbia requires motor vehicle dealers to hold a $25,000 surety bond. The bond is to be on file with the Department of Licensing and Consumer Protection to activate and maintain the license. Should a dealer cause monetary loss to a member of the public, the surety bond can be used to reimburse the individual.

Auto dealers can get this bond in minutes—click the button to get started:

QUOTE

As the decision maker, Jet delivers rates that work for everyone, including low monthly payments and discounted two-year options.

How Much Does Motor Vehicle Dealer Bond Cost in DC?

The cost of the bond relies on your personal credit and years in business, with the lowest rate being $13 per month. The bond can be purchased for the full two years up front, which starts at $263. The Department of Licensing and Consumer Protection requires the bond to be in place for two years to line up with the license term.

Bond TermCost
Monthly$13
2 Years$263
DC Auto Dealer Bond Cost

Credit checks are standard in the surety industry for Auto Dealer Bonds. It helps the surety company (Jet) understand the applicant’s financial situation and determine the risk associated. Just like any industry, new businesses carry more risk. If you have great credit as a new business owner, your rate will improve the longer you’re in business.

What Purpose Do Motor Vehicle Dealer Bonds Serve?

In Washington, D.C., the Department of Licensing and Consumer Protection is tasked with enforcing the surety bond, among other requirements, to keep the people safe.

Surety bonds address the risk presented by auto dealers, including fraud and negligence. This can look like a dealer tampering with a vehicle’s odometer or failing to disclose important details about a vehicle’s history. In these scenarios, the dealer is generally given a chance to rectify the situation, but failure to do will may lead to a claim on the bond. 

If a claim is valid, Jet (the surety company) will pay the claimant. It doesn’t end there—surety companies only pay out on the bond when there is an intentional act committed, unlike insurance. Because of this, the dealer must pay the surety company back.

Requirements to be a licensed dealership can be found on the DLCP’s Motor Vehicle Dealer page.

Getting Your Dealer License Bond With Jet

The process to get your bond can be done in just a few minutes. We only collect the information necessary to get you a quote and fill out the bond form. 

QUOTE

When a quote is presented on the screen, you can select the monthly or two-year option. Next, it’ll ask for your credit card information. Upon successful payment, your bond form and receipt will be ready for download.

The original bond form will be mailed to you for filling, which needs to be done alongside your application, whether initial or renewal. The application, along with any documentation, can be completed in the My DC Business Center. A bond is for two years from the effective issuance date and must cover the full two-year license term. 

If anything needs to be manually filed, it can be done at the following address:

DC Department of Licensing and Consumer Protection
1100 4th Street, SW, 2nd Floor
Washington, DC 20024

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.

Washington, D.C. Motor Vehicle Dealer Bond Form Example

District of Columbia 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: