Michigan Auto Dealer Bond

Michigan Auto Dealer Bond

The Michigan Department of State requires brokers, new vehicle dealers, and used vehicle dealers to obtain a $25,000 Uniform Vehicle Dealer Surety Bond, also known as an Auto Dealer Bond. Click the button below to get your bond in minutes.



Jet studies the car business to sniff out the shady shops that cause all of the claims, allowing us to lower bond prices for Michigan dealers.

Other bond providers just run a generic credit check, which opens the floodgates causing quality dealers to unfairly subsidize the deadbeats with an inflated premium.

We think honest dealers with solid business practices should get to save on their bond.

What Is the Lowest Price for a Dealer Bond in Michigan?

$15 a month or $150 for one year! There are also two- and three-year options. The price offered will depend on your personal credit (it's a soft credit check that doesn't affect your score), years of experience and dealership's practices. See the chart below for starting rates.

Bond TermCost
Monthly$15
1 Year$150
2 Years$263
3 Years$375
MI Vehicle Dealer Bond Prices

What is the Monthly Payment Option?

We give you the option to purchase your bond on a monthly subscription basis, starting at just $15. There is no down payment required.

We are the only surety company willing and able to allow you to pay for the bond month-to-month.

Unlike other providers who require you to pay the full amount upfront and won't refund the premium if you need to cancel midterm, with Jet you can cancel anytime with a simple chat, email or phone call.

Why Is a Surety Bond Required for Michigan Motor Vehicle Dealers?

Michigan has the responsibility of protecting its citizens from fraudulent business practices. Laid out in the Michigan Vehicle Code are laws applicable to motor vehicle businesses overseen by the Michigan Department of State (MDOS). The Business Licensing Section of the MDOS is tasked with licensing motor vehicle dealers to ensure brokers and dealers comply with the rules and regulations, one of which is the requirement of a surety bond for motor vehicle brokers and dealers of new and used vehicles to hold a surety bond.

The Uniform Vehicle Dealer Surety Bond is a guarantee to the MDSOS that funds are available via the surety company (Jet) should a dealer or broker commit an act that causes financial harm to the public or the State. A claim can be filed to recover damages, but that’s not the end of the story as the dealer is still liable for any claim payments—more on this in the Bond Claim Process link below.

The bond limit was raised from $10,000 to $25,000 in January 2023. The bond has a common expiration date of 12/31 each year so those renewing their bond for 2024 will be seeing an increased surety bill.

How Does a Michigan Auto Dealer Bond Get Filed?

Once you’ve submitted your business information through the application and paid for the bond, the bond form is ready for download, along with your receipt. The original bond will be mailed to you for filing with the Michigan Department of State.

During checkout, you can choose to overnight the bond, should it be necessary. Send the completed bond form to the address below:

Michigan Department of State, Business Licensing Section
430 W. Allegan, 3rd Floor
Lansing, MI 48918

Read More About Motor Vehicle Dealer Bond Claims and Bond Handling 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 should know what causes a claim and what to do if one is filed against them.

Michigan Uniform Vehicle Dealer Surety Bond Example

Michigan 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: