Kentucky Auto Dealer Bond

Kentucky Auto Dealer Bond

The Commonwealth of Kentucky Motor Vehicle Commission may require a motor vehicle dealer to obtain a surety bond to get a license. Dealers need to show they have financial stability during license application. If the Commission deems there are not enough assets or other securities present, a surety bond from a third-party surety company will be required.

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With Jet Insurance Company, you can get your quote online and save on your bond now!

How Is the Price Determined for a Kentucky Dealer Bond?

The most important factor that affects the bond’s price is the required bond limit set by the Commission. The bond limit will range from $25,000 to $100,000. The premium (what you pay) for the bond is just a percentage of that bond amount and is based on the personal credit and experience of the applicant. 

With Jet, the lowest rate available is $17 a month or $170 for a one-year term for bonds with the $25,000 limit. Applicants without good credit and/or less experience can expect to pay more. Below is a chart showing preferred tier pricing available for a couple of different bond limits.

Bond LimitMonthly1 Year2 Years
$25,000$17$170$298
$50,000$34$340$595
$100,000$68$680$1,190
Kentucky Motor Vehicle Dealer Bond Cost

The monthly option is exclusive to Jet within the surety industry. It allows dealers to purchase the bond for a low monthly cost and cancel at any time. This is a big advantage for dealers who can eventually get the bond requirement waived by the Commission.

Why Does Kentucky Require Motor Vehicle Dealers to Get a Surety Bond?

The Kentucky Motor Vehicle Commission has a duty set in place by the State Legislature (Kentucky Revised Statutes Chapter 186) to protect consumers from damages caused by dealers. The surety bond is a financial safeguard that gives the public recourse in the event a dealer neglects or purposely fails to perform their duties, such as transferring the title, or acts fraudulently, like tampering with odometers.

When a consumer suffers financial harm, the dealer must make restitution. Typically, this is ordered by a court or regulatory agency in Kentucky. The Commission believes that if a dealer has a certain level of financial stability they are less likely to cause a complaint or could resolve a complaint on their own amicably with their own resources. 

The Commission will look at cash, inventory, real estate, etc. upon application for a license to determine if the minimum level of assets is met. If the minimum level is not met, the Commission will require a surety bond at a bond limit they determine appropriate for the dealer to operate.

The Kentucky Auto Dealer Bond is a guarantee through a third-party financial institution (Jet) that the surety will step in and make payment should the dealer fail to make amends for damages they negligently or willfully cause. 

Active dealers can have the surety bond requirement waived upon request to the Commission. The Commission will, of course, require the dealership to prove they have the proper level of assets to assuage the financial asset requirement and do away with the bond.

The following license types can be required to hold a surety bond:

How to Apply for the Kentucky Dealer Bond With Jet

It only takes about two minutes to get your quote online and about another one minute to purchase it. You can also call (855) 296-2663 and get a quote over the phone. We have to run a credit check as part of our underwriting process—it will not affect your credit and only takes a second.

Click the button below to start and save now!

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Can Jet File the Surety Bond for Me?

Yes, Jet can file the bond to the Commission for you. We will send you the original bond, regardless, to the address you provide during purchase. Should you want to submit the bond physically, the Commission is found at the address below:

Commonwealth of Kentucky Motor Vehicle Commission
150 Sea Hero Rd. Suite 1
Frankfort, KY 40601

Read More About Managing Your Surety Bond With Jet

How to Renew My Bond

Need to renew your bond? Read more on Jet’s process to renew your bond.

How to Cancel My Bond

See the details surrounding canceling your bond.

Bond Claim Process

Motor Vehicle Dealers need to be aware of what causes a claim and what happens after a claim is made.

Kentucky Motor Vehicle Dealer Bond Form Example

Kentucky 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: