Mississippi Auto Dealer Bond

Mississippi Auto Dealer Bond

Motor vehicle dealers in Mississippi are required to have a surety bond to be licensed. Get a quote in two minutes and save now with Jet Insurance Company!

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Used and wholesale dealers are regulated by the Department of Revenue Motor Vehicle Licensing Bureau and need to post the $15,000 Bond of Designated Agent (for Motor Vehicle Dealers). New/franchise dealers are under the jurisdiction of the Mississippi Motor Vehicle Commission and need the $25,000 Bond of New Motor Vehicle Dealer.

How Much Does It Cost Motor Vehicle Dealers to Get a Surety Bond in Mississippi?

For used and wholesale dealers, aka designated agents, the bond price starts at $10 a month or $100 for one year. You can opt to get a multi-year term bond at a discount. 

New/franchise dealers can get a bond starting at $200 for a 1-year term. No monthly option is available for franchise dealers, unfortunately. The bond cannot be canceled once executed per the agreement made on the bond form.

Bond TypeLimitMonthly1 Year2 Years
Designated Agent (Used/Wholesale)$15,000$10$100$175
Appointed Designated Agent$5,000$10$100$175
New/Franchise Dealer (One Location)$25,000NA$200$350
New/Franchise Dealer - Blanket (All Locations)$100,000NA$800$1,400
Mississippi Auto Dealer Bond Prices

Franchise dealers with more than 3 locations can save by purchasing the blanket bond to cover all locations starting at $800 a year. Otherwise, a bond is needed for each location. 

The rates are based on the personal credit of the applicant and the experience of the dealership. Jet can offer these savings to dealers because we do not rely on agents or brokers who add fees and price hikes.

Why Does the State of Mississippi Require Dealers to Have a Surety Bond?

The Motor Vehicle Dealer Bond is a tool utilized by the State of Mississippi to protect the public from financial harm that is caused by dealers breaking rules and regulations. All states have a similar bond requirement in place for dealers, which is not saying much concerning the popular opinion of auto dealers. 

Jet Insurance Company steps in and provides the bond thus giving the State a guarantee from a third-party financial institution that the public will not remain damaged due to a dealer’s actions, at least up to the bond’s limit. 

The Mississippi State Legislature wrote into law the necessity for the oversight and bond requirement of dealers. The Mississippi Motor Vehicle Commission is in charge of new dealers and stated very well that the bond is to “indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of license”. The Department of Revenue oversees used dealers, wholesale dealers, and designated agent appointees.

How to Apply for the Dealer Bond With Jet

Just click the button below, enter some basic information, and get your quote online. You will have the option to purchase immediately. The whole process takes a couple of minutes.

GET A QUOTE

The $100,000 Blanket Bond for New Dealers will be sent to an underwriter for review prior to getting a quote due to the large limit required.

Dealing With the Department of Revenue Motor Vehicle Licensing Bureau - Used/Wholesale Dealers

Pun intended, but seriously let’s dive into filing, renewing, and cancelling the surety bond for used and wholesale dealers.

Filing the Bond

Once purchased, Jet will send you the original bond form signed and sealed with the Power of Attorney. The bond needs to be signed (principal line on the bond form) and submitted by the dealer to the DOR at the following address:

MS Department of Revenue Motor Vehicle Services
Motor Vehicle Services Bureau 
PO Box 1140
Jackson, MS 39215

Renewing the Bond

Keeping your surety bond active is as simple as making payment however you choose. Over the phone at (855) 296-2663, online through a secure link we send, or in the mail. 

Jet sends notice well before the bond expires to give you time to make the payment. Monthly customers need only keep the card they have on file updated and the bond stays active.

Cancelling the Bond

Should you ever need to cancel your bond just email [email protected]. Monthly payments will cease and you will be sent a return premium to you for annual bond terms if applicable. 

Jet sends a notice to the DOR Motor Vehicle Services Bureau cancelling the bond. There is a 30-day grace period where the DOR will keep the bond active should there be any lingering issues. After that 30-day period, you will no longer have an active bond with Jet.

Dealing With The Motor Vehicle Commission - New/Franchise Dealers

Filing the Bond

For dealers just getting their license, Jet needs to send you the original sealed and signed bond form to be filed with your initial dealer application. If you have a current license Jet can handle the bond filing for your or you can elect to file yourself. Bonds are filed to the following location:

Mississippi Motor Vehicle Commission
1755 Lelia Drive, Suite 200
Jackson, MS 39216

Renewing the Bond

Jet will send you a notice prior to the bond expiration date to make payment over the phone at (855) 296-2663, online through a secure link we send, or in the mail. A continuation certificate must be sent to the Commission. Jet will handle that certificate to show the bond was renewed. You will receive a copy and receipt electronically.

Cancelling the Bond

The bond form has verbiage that does not allow the dealer or Jet to cancel the bond once issued prior to the end of the bond’s term. If for any reason you need to cancel the bond after it is purchased email [email protected]. Jet can request the release of liability from the Commission but are at their mercy to get released. If the release can be secured, Jet can then calculate if there is any return premium available.

Designated Agents for the Department of Revenue

A $5,000 Designated Agent Bond is required for operations performing title duties for the DOR. The following business types can get appointed by the DOR:

Read More About Bond Claims for Motor Vehicle Dealers

Bond Claim Process

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

Mississippi Motor Vehicle Dealer Bond Form

Mississippi Bond of Designated Agent

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: