Michigan Auto Dealer Bonds
Motor vehicle dealers in Michigan have the responsibility of holding a uniform motor vehicle dealer bond in the amount of $10,000. Michigan law requires a bond to be in effect at the time of submitting the motor vehicle dealer application. At Jet, we provide this bond at a fraction of the typical price for dealers by shopping with various A-rated or better insurance carriers.
What Is the Cost of an Auto Dealer Bond in Michigan?
The price of the motor vehicle bond will vary, based on several factors including the dealer’s personal credit score. In Michigan, prices can be as low as $100 per year, or $9 per month.
|Price Tier*||$10,000 Michigan
|Monthly | Annual|
|Preferred||$9 | $100|
|Standard||$13 | $150|
|Credit Repair||$37 | $400|
*The price of Michigan auto dealer bonds are based on several factors, as stated above. Our lowest prices are reflected in the chart above, but these are subject to change and not guaranteed.
Can the Application For the Michigan Car Dealer Bond Be Done Online?
The application process is quick and painless. Click the “Apply Now” button below to start our application. Follow the prompts and submit your information for a same day quote.
|Michigan Auto Dealer Bond Application|
|$10,000 Car Dealer Bond|
Why Is a Surety Bond Required for Car Dealers in Michigan?
All new (A), used (B), and broker (D) Dealers must have a $10,000 bond to cover any misconduct on behalf of the dealer, whether accidental or intentional. Upon a legitimate claim being filed against the dealer, the surety company will compensate any monetary loss the Obligee has incurred up to the $10,000 limit of the bond. The dealer is then legally obligated to pay back the full amount of the claim as well as any legal fees.
Additionally, a motor vehicle dealer license cannot be granted without a uniform vehicle dealer surety bond. Motor vehicle dealers cannot be licensed without bond coverage.
A Uniform Surety Bond is Required for Lost Titles.
Vehicles without a title available must have a uniform surety bond (Form TR-121) to apply for a replacement title. The vehicle must be less than ten years old or more than $2,500 in value. This bond must be supplied by a bonding company licensed to do business in the state of Michigan. The amount of the bond must be double the value of the vehicle and have coverage for three years.
Requirements for the Bond Application.
The Michigan Department of State includes the uniform vehicle dealer surety bond as part of the application to become a motor vehicle dealer. A dealer license cannot be obtained if the bond is not correctly filled out. The requirements for concluding the bond application are as follows:
- The business name and address must EXACTLY match on the bond and the dealer license application
- Individual owners and partners MUST be included with the business name and address
- ONLY the corporate name and address, not corporate officers, are required for a corporation
- The BOND NUMBER is needed on the front of the bond
- The name of surety must be entered
- The bond must have the following signatures:
- Principal (dealer license applicant)
- Witness to Principal
- Attorney-in-Fact for the surety
- Witness to Attorney-in-Fact for the surety
- Licensed Resident Insurance Agent (agent who sold the bond)
- The power of attorney must be on file with the Michigan Department of State, or be in accompany with the bond when filed.