In Iowa, motor vehicle dealers and towable recreational vehicle dealers need to have a $75,000 surety bond to be licensed. The Iowa Department of Transportation requires the bond as a form of protection for the state and its citizens in cases of wrongful dealer actions that lead to monetary loss.
At Jet, you’re getting the cream of the crop. We cut out middlemen agents and brokers to deliver pricing that works for everyone—no hidden fees involved. You’re also getting direct access to the surety company that provides claims defense, should it be needed.
Iowa Motor Vehicle Dealer Bonds start at $150 for one year or $15 per month. If you need the Towable Recreational Vehicle Dealer Bond, the starting rates are $563 annually or $56 monthly. Multi-year rates are also available.
|Motor Vehicle Dealer||$28||$281|
|Towable Recreational Vehicle Dealer||$56||$563|
As is standard in the surety industry, a soft credit check is required to be approved for a quote. This helps determine the risk associated. The longer you’re in business, the more trustworthy your business is; therefore, if you have great credit and several years of experience, you’ll qualify for the lowest rates.
For Iowa dealerships to be considered a Place of Business, the following criteria must be met:
Additional details can be found on the Motor Vehicle Dealer’s License page.
Even if you’re licensed as a motor vehicle dealer, a towable recreational vehicle dealer's license is still required. Iowa towable RV dealers must meet the following Place of Business requirements:
Towable RVs include toy haulers, travel trailers, fifth-wheels, folding camping trailers, truck campers, and park model RVs.
For more information, view the Towable Recreational Vehicle Dealer’s License page.
Iowa, along with the other 49 states, uses dealer license bonds as a tool to protect its people. Before getting a license, and to maintain one, a surety bond is required for all motor vehicle dealers in the state. The bond provides a guarantee that should the dealer act in a manner that causes monetary loss, there is restitution available.
Jet’s position in the mix, as the surety company, is the guarantor of funds in the case of a bond claim. Jet will pay out valid claims, but will seek reimbursement from the dealer. This is because surety bonds are unlike traditional liability insurance and only pay out in cases of negligent or fraudulent acts that have led to finanical damage. The dealer is responsible for their actions and therefore must restore the bond to its full limit by paying Jet back.
Laws surrounding vehicle dealers can be found in the following links:
Iowa Code, Chapter 321 - Motor Vehicles and Law of the Road
Iowa Code, Chapter 322 - Vehicle Manufacturers, Distributors, Wholesalers, & Dealers
Iowa Code, Chapter 322C - Recreational Vehicle Dealers, Manufacturers, & Distributors
The first step is filling out the application, which only asks for the information absolutely necessary to get you a bond, e.g. your name, phone number, business name and address, and your social security number for the soft credit check.
After this, you’ll be presented with monthly, annual, and multi-year rates. Choose the one that works best for you and then fulfill payment. Then, your bond form and receipt are available to download for your records.
Vehicle Central Programs
Iowa Department of Transportation
P.O. Box 9278
Des Moines, IA 50306