Illinois law requires motor vehicle dealers to be bonded to conduct business. Surety bonds make it so the dealers have financial responsibility to restore the cost of any improper business handling to the customer. Click the button below to fill out the application for a quick quote!
The Illinois Secretary of State, Vehicle Services Department, strongly enforces the bond requirement among many others in order to become a licensed dealer.
Jet works with many insurance companies to get the lowest cost for you. Our rates start at $50 each month or $500 for a full year of coverage.
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Illinois requires a $50,000 bond for all vehicle dealers. The bond must be valid during the license period, which ends on December 31st of each year. The $50,000 bond applies to one location; multiple dealership locations need to file separate bonds. The bond amount was previously $20,000, but the limit was increased on January 1, 2018 with the passing of Senate Bill 1556.
It is mandatory for vehicle dealers to be bonded for the first 60 consecutive months of business. If during that time the dealer hasn’t omitted or submitted any registration/title fees or taxes late, the dealer will not have to comply with bond renewal requirements.
By clicking the apply now button below you will be taken to our online application which can be completed quickly. Once submitted, Jet will work on getting your quote over to you both via phone call and email.
$50,000 Motor Vehicle Dealer Bond
All relevant forms must be included with the dealer application or it will be rejected. Applications must be notarized.
To further protect consumers, the Illinois Dealer Recovery Trust Fund was created to aid consumers after a dealer has gone out of business. Dealers must pay a $500 fee into the Fund at the initial license application or at renewal, with a $50 fee per each additional location.
Should the Fund reach higher than $3,500,000 by August 31st, the fees for the following year may be canceled. Dealers who have not had claims against the Fund, have not violated the terms of the Fund, or have not had their license suspended or revoked, will not have to pay the Fund fee. Dealers who have done the above stated things will still be required to pay the fee.