Indiana Auto Dealer Bond

Indiana Auto Dealer Bond

All Indiana motor vehicle dealers are required by the Indiana Secretary of State to have a $25,000 Vehicle Merchandising Bond, also known as an Auto Dealer Bond. Click the quote button, fill in some quick information, and get your bond in under five minutes.

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Jet's direct model eliminates middlemen agents and brokers which allows for discounted annual and multi-year rates in addition to monthly payments.

What Is the Best Price for the Indiana Auto Dealer Bond?

With good credit and years of experience, you can be approved for a rate of $100 for one year or $10 a month. This means you are a new dealer with good credit, your rate will continue to go down as your years of experience increase!

Bond TermCost
Monthly$10
1 Year$100
2 Years$175
3 Years$250
Indiana Auto Dealer Bond Prices

Monthly payments are convenient for keeping your bond active for years to come at a low rate. The discounted annual and multi-year rates are great for locking in a lower rate up front.

Who Needs a Vehicle Merchandising Bond In Indiana?

The following vehicle businesses are required by the Secretary of State to be licensed and hold a $25,000 surety bond:

Bond TypeDescription
New Vehicle DealerSells at least 12 new motor vehicles or 3 new manufactured homes in a year.
Used Vehicle DealerSells at least 12 used motor vehicles or 3 used manufactured homes in a year.
AuctionArranges or carries out auctions consisting of 3 motor vehicles or watercraft in a year.
DistributorSells vehicles to dealers.
ManufacturerManufactures new vehicles or parts of vehicles and sells to dealers or distributors. Includes factory branches and manufacturer-controlled entities.
*RV and mobile home manufacturers don’t need to be licensed.
Salvage Recycler- Sells major component vehicle parts
- Destroys vehicles to sell a major part or as scrap material
- Rebuilds a vehicle that’s wrecked or dismantled
- Stores, recycles, or disposes of vehicles and/or parts
Converter ManufacturerAdds, subtracts, or modifies manufactured vehicles. Examples include:
- Adapting vehicles for those with disabilities
- Modifying vehicles for rescue vehicle use,
- Adding custom features/amenities to manufactured vehicles
Watercraft DealerSells at least 6 watercraft or trailers in a year.
Transfer DealerTransfers 12 or more vehicles in a year. Examples of transfer dealers include insurance companies or financial institutions dealing in salvage/repossessed vehicles. 
Auto Mobility (Endorsement)Sells adapted vehicles or watercraft OR sells, services, or installs equipment/modifications designed to facilitate the use of watercraft or vehicle by a disabled individual.
Indiana Vehicle Business License Types

Why Does the Require a Dealer License Bond?

Several laws are set forth in Indiana Code, Title 9, Article 32 that apply to motor vehicle dealers. The Indiana Secretary of State has the responsibility of regulating dealers and holding them accountable to comply with said laws. This is done through licensing and the surety bond.

Jet is the guarantor on the surety bond, meaning that by providing the bond, Jet is guaranteeing payment should things go awry. More specifically, if an auto dealer fails to abide by the rules and regulations and therefore causes monetary loss to a customer or the obligee, there is a means of restitution available (but the dealer isn’t off the hook). A few examples of when a bond is used for reimbursement include: odometer tampering, nonpayment of fees and taxes, and failure to deliver a vehicle title. 

More information on claims can be found in the Motor Vehicle Dealer Bond Claims Guide.

Obtain Your Bond Indiana Motor Vehicle Dealer Bond With Jet

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Step 1: Fill out the required information
Step 2: Select your preferred bond term and make payment
Step 3: File your bond with the Secretary of State. This can be done in your dealer dashboard.

If anything needs to be filed the old fashioned way, it can be done at this address:

Indiana Secretary of State, Auto Dealer Services Division
302 West Washington Street, Room E-111
Indianapolis, IN 46204

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.

Indiana Vehicle Merchandising Bond Form Example

Indiana 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: