The $25,000 Florida Motor Vehicle Dealer Bond is a licensing requirement for auto dealers operating in the state. The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) utilizes the bond as a financial safeguard for the consumers' benefit from damages arising from misleading or criminal dealer activities.
Jet Insurance Company has been writing auto dealer’s surety bonds since our inception. By eliminating agents and brokers, Jet offers the best deal and service in the industry. Purchase the bond in minutes online or call (855) 296-2663 and get it done over the phone.
Prices with Jet start at $188 annually or $19 monthly for Used Auto Dealers. Two- and three-year bond terms are also available. Below are Jet’s preferred prices (starting prices) for all motor vehicle dealer types. Rates will vary.
Our monthly offer gives dealers an option that no other surety provider has. Sure, some offer bond financing, but you know better than anyone who is making hay on that deal. Jet’s monthly offer is just as it sounds—make the monthly payment and cancel at any time. No fees or gimmicks.
Jet’s automatic payment process takes the hassle out of constantly having to renew your bond and provides a more affordable means of getting a bond started.
Motor Vehicle Dealer Bonds have a fair level of risk in the surety industry (which is warranted per Jet’s experience). Therefore, a dealer’s personal credit and years in business are utilized to determine the bond price. To receive Jet’s preferred rate, your dealership needs several years of experience and good credit history. Without any experience and with average credit history, Jet’s bond rates are around $375 to $500 annually.
Franchise dealerships receive much lower rates than used dealers. This is due to the high level of underwriting scrutiny placed upon franchisees by vehicle manufacturers to become a dealer at the outset. The higher the level of entry, the lower the rate Jet can offer for the bond.
Not just Florida, but all states require auto dealers to have a surety bond for licensing. Regulators believe there is enough inherent risk in this profession to the consumer to require a third-party financial safeguard. The bond is a promise from the surety carrier (Jet) to the Florida Department of Highway Safety and Motor Vehicles should the bonded dealer cause financial damage to their customers and also fail to recompense, then Jet will make payment to the damaged customer.
Motor Vehicle Dealer Bonds are mandatory because they provide protection from the dealer and are not for the dealer’s benefit. The FLHSMV also receives financial assurance from a reputable source, in this case, Jet Insurance Company, that allows a person without any financial security to start a dealership business. And let’s face it, to start a business your money is needed in thousands of different ways and not to be held as a security deposit by the government.
There is a case where used vehicle dealers receive protection from a license bond. Wholesale and vehicle auction operations are required to carry a surety bond as well. Used dealers are receiving that surety protection from licensed wholesalers and auction companies who might act in a fraudulent manner.
Jet encourages licensed dealers to know the laws that govern them which can all be found in Chapter 320 of the Florida Statutes.
First, if you sell more than three vehicles a year in Florida, then you need to be licensed with the FLHSMV. Second, vehicle brokers do not need a license. Below is a chart of all the businesses that do need a license in Florida.
|License Code||Classification||License Renewal||Bond Limit||Note|
|VF||Franchise Motor Vehicle Dealer||12/31||$25,000|
|SF||Service Only Franchise Motor Vehicle Dealer||12/31||$25,000||No vehicle sales allowed at service site|
|VI||Independent Dealer (Used Dealer)||4/30||$25,000|
|VW||Wholesale Dealer||4/30||$25,000||Can only sell to licensed dealers|
|VA||Motor Vehicle Auction||4/30||$25,000||Can only sell via auction to licensed dealers|
|SD||Salvage Dealer||4/30||$25,000||Can only sell at salvage site, needs VI license to sell at other sites|
|DH||Mobile Home Dealer||9/30||$25,000||$50k limit if there are more than 4 supplemental locations|
|BH||Mobile Home Broker||9/30||$25,000||Assists public in getting a mobile home|
|RV||Recreational Vehicle Dealer||9/30||$10,000||Cannot sell mobile homes. $20k limit if there are more than 4 supplemental locations|
|RU||Used Recreational Vehicle Dealer||9/30||$10,000||$20k limit if there are more than 4 supplemental locations|
(1) Obtaining the bond takes just a moment online. Only basic business information is needed, then you pick your bond term and make payment.
(2) Following the purchase you will receive a bond copy and receipt. The original bond is mailed by Jet to the address you provide in the application.
(3) The original bond form needs to be delivered to your local Motor Vehicle Field Operation Regional Office. Below is a list of counties serviced according to the regional office, along with addresses.
|Broward||1135 Banks Road|
Margate, Florida 33063
|Indian River, Okeechobee, Martin, Palm Beach, St. Lucie||901 Northpoint Parkway, Suites 115 & 116|
West Palm Beach, Florida 33407
|Alachua, Gilchrist, Lake, Levy, Marion, Putnam||318 Southeast 25th Avenue|
Ocala, Florida 34471
|Baker, Bradford, Clay, Columbia, Flagler, Duval, Nassau, St. Johns, Union||9550 Regency Square Boulevard, Suite 100|
Jacksonville, Florida 32225
|Brevard, Seminole, Volusia||2575 South Volusia Avenue, Suite 300|
Orange City, Florida 32763
|Orange, Osceola||4101 Clarcona-Ocoee Road, Suite 160|
Orlando, Florida 32810
|Citrus, Hernando, Hillsborough, Pasco, Pinellas, Polk, Sumter||NET PARK|
Suite 2228 5701 East Hillsborough Avenue
Tampa, Florida 33610
|Dixie, Franklin, Gadsden, Hamilton, Jefferson, Lafayette, Leon, Liberty, Madison, Suwanee, Taylor, Wakulla||2900 Apalachee Parkway, Room B-142, MS-76|
Tallahassee, Florida 32399
|Bay, Calhoun, Gulf, Jackson, Holmes, Walton, Washington||6030 County Road 2321|
Panama City, Florida 32404
|Escambia, Okaloosa, Santa Rosa||100 Stumpfield Road|
Pensacola, Florida 32503
|Charlotte, Collier, Desoto, Glades, Hardee, Hendry, Highlands, Lee, Manatee, Sarasota||323 10th Avenue West, Suite 200|
Palmetto, Florida 34221
|Dade, Monroe||12601 NW 42nd Avenue|
Opa Locka, Florida 33056
In the bond life cycle, there is nothing to do after the bond is filed until the bond needs to be renewed. Should you need to cancel your bond, just email us at [email protected]. If there is any unearned premium left on the bond it will be sent back to you via check.
The Florida Auto Dealer Bond has a 30-day cancellation period. This means once Jet files a cancellation notice with the FLHSMV the bond will stay active for an additional 30 days. Thus giving dealers time to secure bonding and also giving the public extended coverage if there is an overlap of dealer service from the time the bond cancellation request was sent.
Dealers have strict licensing laws in each State. Florida is no exception but has its own variation of how a complaint is handled.
Complaints from consumers are handled by the local Motor Vehicle Field Office of the Florida Department of Highway Safety and Motor Vehicles. The field staff will perform an investigation and will make a determination. Consumer protection is the emphasis of their department, so you best believe it is guilty until proven innocent for dealers. Luckily, Jet will defend the dealership if the complaint turns into a bond claim.
RV and mobile home dealers need a $10,000 and $25,000 surety bond for licensing, respectively. Garagekeepers policies are also required by the State of Florida to hold a dealer license. Much like the bond, the intent of garagekeepers is to protect third parties from damages arising out of dealer operations. However, a garagekeeper policy is for accidents, while surety bonds are for more malicious activities.