Maine Auto Dealer Bond

Maine Auto Dealer Bond

The Maine Bureau of Motor Vehicles requires anyone selling five or more vehicles in a year to hold an Auto Dealer Bond as part of their licensing requirements. The bond provides reassurance to the Bureau and the public that should they experience financial loss at the hand of the dealer, they will be reimbursed.

Click the quote button and have your dealer bond in minutes:

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How Much Does a Surety Bond for Motor Vehicle Dealers Cost in Maine?

The biggest factors involved in the price are the bond limit (determined by the volume of cars sold per year), the dealer’s personal credit, and years of experience. Check the chart of starting rates at each bond limit. Multi-year rates are also available.

Bond Limit# of Cars SoldMonthly1 Year
$25,0000-50$17$165
$50,00051-100$33$330
$75,000101-150$50$495
$100,000151+$66$660
Maine Auto Dealer Bond Costs

Those applying for an initial license with the Bureau of Motor Vehicles will have their bond limit based on project sales for the upcoming year.

Maine Motor Vehicle Dealer License Classifications

Several dealer types need a bond to be able to operate in the state of Maine. These include:

Used Vehicle Dealer: deals primarily in buying and selling used vehicles.

New Vehicle Dealer: deals primarily in buying and selling new vehicles and has a franchise from a manufacturer or distributor.

Motorcycle Dealer: deals primarily in buying or selling new and/or used motorcycles.

Heavy Trailer Dealer: sells trailers weighing over 3,000 pounds.

Vehicle Auction: sells vehicles at a public or private auction through bidding.

The following dealer types do not need a surety bond to operate but still need to be licensed with the Bureau of Motor Vehicles:

Dealer licenses expire on the last day of the month one year from the date of issuance.

Why Do Motor Vehicle Dealers in Maine Need a License Bond?

The Maine Bureau of Motor Vehicles Dealer Section is responsible for issuing and maintaining licensed dealer records and the dealer plates. The Dealer Section is also tasked with keeping the public safe from dealer misconduct by enforcing regulations, such as the surety bond.

Auto dealer bonds provide a means of restitution in situations where a member of the public has experienced financial damage as the result of a dealer’s unethical or illegal action(s). For example, a customer finds out that a dealer has rolled back the odometer on a vehicle they bought from them and decides to pursue a bond claim. If the claim is valid, the surety company (Jet) will pay the customer the damages up to the bond’s limit. Then, it’s up to the dealer to pay the surety company back for the claim amount.

To read legislation specific to Maine motor vehicle dealers, refer to Maine Legislature, Title 29-A, Chapter 9.

How to Get a Maine Licensed Dealer Bond

Click the button below, fill in the information, provide payment, and download your bond form and receipt!

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After that, Jet can take care of filing the to the Maine BMV for you, free of charge. If you need to send a physical copy of the bond in with paperwork, do so at the following address:

Maine Bureau of Motor Vehicles, Dealer Licensing
29 State House Station
Augusta, ME 04333

We produce these bonds as Jet Insurance Services through our partnership with Lexington National Insurance Corporation.

Read 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.

Maine Surety Bond for Motor Vehicle Dealer Form Example

Maine 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: