Maryland Auto Dealer Bond

Maryland Auto Dealer Bond

New and used motor vehicle dealers are required to file a surety bond with the Maryland Motor Vehicle Administration as part of their licensing process. Jet’s direct distribution model will get you bonded within minutes. Click the button below to get started:

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Have questions? Give us a call at 855-296-2663 to speak with an underwriter.

Maryland Dealer Bond Cost By Business Type

The cost of the bond directly correlates with two things: the bond limit and your personal credit. The bond limit varies from $5,000 to $300,000, which is determined by the number of vehicles sold in a year. The starting cost for the lowest bond limit of $15,000 is $100 for one year or $10 a month. Review the charts below for starting rates for the bond type and limit you need.

Used vehicle dealers includes wholesalers, motorcycle dealers, and emergency vehicle dealers selling used models. 

Bond Limit# of Vehicles SoldMonthly1 Year
$15,0001-250$10$100
$25,000251-500$15$150
$35,000501-1,000$21$210
$50,0001,001-2,500$30$300
$150,000Over 2,500$90$900
Used Vehicle Dealer Bond Prices

New vehicle dealers includes motorcycle dealer and emergency vehicle dealers selling new models.

Bond Limit# of Vehicles SoldMonthly1 Year
$50,0001-500$30$300
$75,000501-1,000$45$450
$100,0001,001-2,500$60$600
$300,000Over 2,500$180$1,800
New Vehicle Dealer Bond Prices

Other licensees that need a bond include motor vehicle manufacturers, 2nd stage manufacturers, distributors, and factory branches.

Bond Limit# of Vehicles SoldMonthlyAnnual
$25,0001-50$25$250
$50,00051-500$50$500
$100,000501-10,000$100$1,000
$300,000Over 10,000$300$3,000
Manufacturer and Distributor Bond Prices

$5,000 for trailers under 15 feet. Either way, the bond costs $10 a month or $100 for one year.

Additional bond limit information can be found on the Bonding Requirements and Fines for Vehicle Related Businesses page.

What Is the Purpose of Motor Vehicle Dealer Bonds?

Surety bonds for motor vehicle businesses are meant to protect the public and provide a means of restitution in cases of monetary loss. In Maryland, there are several laws codified in Maryland Regulations, Title 11, Subtitle 12 to become a motor vehicle dealer or other vehicle-related businesses, including the surety bond. The Maryland Motor Vehicle Administration is tasked with the enforcement of such laws. Just so you know, Auto Dealer Bonds are required in all 50 states in some capacity.

Jet, as the surety bond, is the financial backer when a valid claim is filed on a Motor Vehicle Dealer Bond. This can happens for reasons such as a used motor vehicle dealer changing an odometer reading. It doesn’t end there, though. It’s then up to the dealer to restore the bond to its full capacity (bond limit) to continue doing business.

License requirement details can be found at the following pages:

Dealer - License To Sell Used Vehicles
Dealer - License to Sell New Vehicles page
Dealer - License for Manufacturers and Distributors

The Surety Bond Process With Jet

Good news—it’s quick. Fill in the application below:

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Once all information has been entered, a quote will be shown on the screen. At that point, you just need to select your preferred bond term (monthly, annual, multi-year) and put in credit card information. 

The final screen has your receipt and bond form available for download for your personal records.

The original signed and sealed bond form will be mailed to you and must be filed with the Motor Vehicle Administration at the following address:

Maryland Motor Vehicle Administration
Business Licensing and Compliance Division
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062

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.

Maryland Motor Vehicle Dealer Surety Bond Form Example

Maryland 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: