Kansas Auto Dealer Bond

Kansas Auto Dealer Bond

Motor vehicle dealers are required to file a $50,000 bond with the Kansas Division of Vehicles. The bond puts financial responsibility on the licensed dealer to perform according to regulations, holding them liable in cases of monetary loss incurred by the public.

Your Kansas Auto Dealer Bond is ready within minutes—get started:

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Jet Surety cuts out the middleman to deliver the lowest rates and quickest service.

How Much Does a Kansas Vehicle Dealer Bond Cost?

Rates start at $200 for 1 year, $350 for 2 years, and $20 a month. The price you qualify for is dependent on your personal credit and years of experience.

Bond TermCost
Monthly$20
1 Year$200
2 Years$350
Kansas Auto Dealer Bond Rates

Regardless of the payment option you choose, there are benefits—the one- and two-year prices are discounted rates, while the monthly option allows you to pay as you go. You can cancel your bond at any time.

Who Needs an Auto Dealer Bond in Kansas?

A motor vehicle dealer is any person who purchases a vehicle with the intent to sell it for a profit. Anyone that sells at least five vehicles in a year must be licensed and hold a bond. 

Although it’s called a Vehicle Dealer Bond, there are several license classifications that must be bonded. Here is a list of those required to file a bond with the Kansas Department of Revenue, Division of Vehicles:

Exceptions to the bonding requirement are factory branches, manufacturers, lending agencies, and manufactured home dealers.

Why Does Kansas Require Vehicle Dealers to be Bonded?

The Kansas Division of Vehicles, Dealer Licensing Bureau (the obligee) is tasked with overseeing licensing of dealers to ensure compliance with laws, rules, and regulations. The surety bond is just one tool used by the obligee, which guarantees restitution should the obligee or member of the public be financially harmed.

Jet, as the surety company, has the role of guarantor. This means we provide compensation in cases of valid bond claims. Just so you know, claims can be avoided by complying with the laws and, should anything happen, addressing issues promptly. Claims are often the last resort when the dealer has failed to make things right. Other disciplinary actions include license suspension or revocation and fines. 

Should a claim be paid out, the dealer is responsible to pay Jet back. This is because surety bonds are unlike insurance and only cover instances of dealer fraud or negligence.

Kansas isn’t alone in its license bond requirement—all 50 states require motor vehicle dealers to hold a surety bond in some capacity.

Review Kansas Statutes, Chapter 8, Article 24 for additional details on dealer licensing requirements.

Getting Your Surety Bond With Jet

Our bond process can be completed in under 5 minutes. Fill out the necessary information, select your preferred payment option, enter your card information, and be on your way.

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After successful payment, you can download your bond form and receipt for your records. Jet will send you the original bond for you to sign. It’s then your responsibility to get it to the Dealer Licensing Bureau at the below address, alongside your application:

Kansas Department of Revenue
Division of Vehicles, Dealer Licensing Bureau
PO Box 2369
Topeka, KS 66601

Kansas Vehicle Dealer Bond Form Information

Jet will fill out the bond form for you based on the information put into the application. Make sure to select. There are a few different ways to structure your business: (1) corporation, (2) partnership, and (3) sole proprietorship/individual.

  1. Corporations should have the bond name written in the corporation name, e.g. “Hugo Auto”.
  2. Partnerships need to include ALL owners' names with d.b.a. dealership name, e.g. “Henry Hugo, Harrison Hugo, and Hendrix Hugo d.b.a Hugo Auto”.
  3. Sole proprietors must have their name and d.b.a dealership name, e.g. “Henry Hugo d.b.a. Hugo Auto”

Dealer Bond Claim Process 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.

Kansas Vehicle Dealer Bond Form Example

Kansas 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: