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Nevada Auto Dealer License Bond
Nevada motor vehicle business owners must file a Vehicle Industry Business License Bond with the DMV’s Occupational and Business Licensing section as part of their licensing with the Nevada Department of Motor Vehicles (DMV).
Jet Insurance Company provides Motor Vehicle License Bonds to various license types such as brokers, dealers, rebuilders, lessors, manufacturers, and distributors as an assurance to the Nevada Department of Motor Vehicles that the business owner will not create damages. The surety bond guarantees financial protection for Nevada's citizens against fraudulent behaviors that are associated with auto dealers.
Jet is a direct surety provider, which allows us to offer you the Nevada Motor Vehicle License Bond without the use of middlemen agents who draw out the process and add on commission fees. You’ll receive your bond right away at an affordable rate!
How Much Does a Nevada Motor Vehicle Surety Bond Cost?
For the $100,000 Auto Dealer Bond, rates are as low as $45 monthly or $450 annually. The quote you are provided is based on your experience and personal credit. Motor vehicle lessors, rebuilders, brokers, and distributors are included in this pricing group.
Specialty dealers are required to have a lower bond limit and therefore rates for their bonds start much lower. Please refer to the chart below to see Jet’s preferred pricing tier for all Nevada motor vehicle business bond types.
| Bond Type | Bond Limit | Monthly | Annual |
|---|---|---|---|
| Auto Dealer or Broker | $100,000 | $45 | $450 |
| Motorcycle Dealer Only | $50,000 | $23 | $225 |
| Off-Highway Vehicle Dealer Only | $50,000 | $23 | $225 |
| Trailers over 3,500 lbs. | $50,000 | $23 | $225 |
| Boat Trailers or Trailer under 3,500 lbs. | $10,000 | $10 | $100 |
Jet’s monthly surety bond payment plan is exclusive to the market and is a great choice for business owners looking for a convenient and affordable option. With this option, your bond will remain active with the Nevada Department of Motor Vehicles for as long as you’d like—cancel any time.
Auto manufacturers’ pricing starts at $80 monthly or $800 annually for the surety bond. These bonds require an underwriter's review before a final offer can be provided. We may require additional information after the initial online submission is completed.
Licensed Nevada auto transporters will need a $100,000 limit surety bond as well, but rates start at $60 monthly.
Can I Receive a Lowered Bond Limit?
Yes, you can! If you are a business owner of five years or longer and have consecutively been in good license standing with the Nevada Department of Motor Vehicles, you can request to have your bond limit lowered (the bond amount can not be reduced by more than 50%). The Bond Reduction Request Form must be filled out and submitted to the DMV's Occupational and Business Licensing office for approval.
Which Businesses Need the Motor Vehicle License Bond?
The Nevada Department of Motor Vehicles has various bond requirements for businesses in the automotive industry. Let’s break down each business license.
Motor Vehicle Dealers
Motor vehicle dealers are those selling more than three vehicles a year and must be licensed with the DMV. A $100,000 Auto Dealer Bond is needed by used, wholesale, and new or franchise dealers. Franchise dealers must also be certified by the model manufacturer or distributor. More Nevada Dealer Information.
Motor Vehicle Brokers
Any person who collects compensation for the arrangement, negotiation, or act of assisting in the purchase or sale of a motor vehicle is considered a broker. Like a dealer, a $100,000 Nevada Auto Broker Bond is required as part of the licensing. Brokers do not buy or sell vehicles. More Nevada Broker Information.
Off-Highway Vehicle Dealer License
Any individual who sells off-highway vehicles such as ATVs, UTVs, and dirt bikes must be licensed with the DMV. A $50,000 Off-Road Vehicle Dealer License Bond is required for any dealer, rebuilder, manufacturer, distributor, or broker of off-highway vehicles. More Off-Highway Vehicle (OHV) Information.
Motor Vehicle Manufacturers
Manufacturers are those licensed to produce motor vehicles, trailers, semi-trailers, and off-road vehicles. The surety bond amount will vary depending on vehicles or trailers manufactured.
Motor Vehicle Distributors
This license group is for the in-betweeners from manufacturers to dealers. The surety bond amount will vary depending on vehicles or trailers distributed.
Motor Vehicle Rebuilders
There are about 10 licensed companies engaged in the business of reconstructing motor vehicles for compensation. The bond amount is based on vehicles or trailers being rebuilt.
Vehicle Transporter
Vehicle transporters are people who transport and/or operate motor vehicles on Nevada highways that they do not have ownership of. The bond limit is always $100,000. More Vehicle Transporter Information.
| Bond Limit | Vehicle/Trailer |
|---|---|
| $10,000 | Boat trailers or trailers with a weight under 3,500 lbs. only |
| $50,000 | Motorcycles, off-highway vehicles, horse trailers, or special purpose trailers over 3,500 lbs. only |
| $100,000 | All other motor vehicles, including travel trailers or trailers with living quarters. This is the most common required limit. |
Why Is the Nevada License Bond Required?
The Nevada Department of Motor Vehicles requires licensed business owners in the motor vehicle industry to obtain the Vehicle Industry Business License Bond for the purpose of keeping the licensee and their employees accountable for their actions in cases where regulations are violated. If a consumer is damaged due to such a transgression and recompense is not made by the licensee, the surety bond will act as a financial guarantee for losses incurred.
Your average Nevadan cannot just start buying and selling cars for a living without a license. The reason being is that some will take advantage of their customers, which has happened and continues to happen. The Nevada State Legislature (like all other states) put in a surety bond requirement involving a third party (Jet Insurance Company) that not only will vet license applicants for financial stability, but provide financial recourse to the damaged public. This creates a winning situation for the State of Nevada, and of course, the State collects its fees along the way.
How to Apply for the Nevada Motor Vehicle License Bond With Jet
The application is quick and hassle-free.
Just submit some general information such as your contact details, license type, and personal social security number. Once submitted, we will run a swift soft credit check to get you an approved rate. No need to worry though, this process won’t affect your credit score.
You will receive your price online and can choose the terms of payment. Once the purchase is made you will receive a copy of the bond and receipt.
How Is the Motor Vehicle Business License Bond Filed With the DMV?
The Nevada Department of Motor Vehicles requires the original, signed, and sealed Motor Vehicle License Bond to be filed with their Occupational and Business Licensing office. The surety bond must remain active and on file to sustain the status of your business license upon renewal.
If you would like, Jet can file your bond for you free of charge! However, we continue to offer the option of filing the bond yourself which can be selected during checkout. The Motor Vehicle License Bond and additional license documentation must be sent to the following mailing address:
Nevada Department of Motor Vehicles
Occupational and Business Licensing
555 Wright Way
Carson City, NV 89711
Regarding new business license applicants, the following business license application packets are required to be completed and submitted to the DMV at the above address:
- For brokers and transporters, the General Application for Business License and Garage Registration is needed.
- For dealers, distributors, lessors, manufacturers, and rebuilders, the Application for Business Licensing Packet is required.
- For off-highway vehicle dealers, the OHV Application Business License Packet is mandated.
What Happens if I Need to Cancel My Nevada Motor Vehicle License Bond? Are Refunds Available?
If for any reason you need to cancel your bond, you can request to do so by emailing Jet at [email protected]. The Nevada Department of Motor Vehicles requires all bond termination notices to be sent by certified mail by Jet. Once received, the liability of the Motor Vehicle License Bond will be released within 30 days.
Monthly payment plan bondholders are required to make one last payment during the 30-day liability period as the bond technically remains active. All payments will cease once the DMV officially releases and cancels your bond.
As for refunds for those who purchased their bond on annual terms, Jet will send you any unearned premium available following our release of liability from the Nevada DMV. A check will come in the mail to the address we have on file.
How to Renew the Nevada Motor Vehicle Business License Bond
Jet’s monthly payment plan gives you the advantage of never having to worry about renewing your bond! All you need to do is keep your preferred payment card updated with us. Your bond will remain active as long as payment is fulfilled and until cancellation is sought.
If you choose to purchase your bond through either our annual or multi-year payment option, Jet will send you a renewal invoice far in advance of your bond term expiration date. No extra paperwork or fees are required, we just need the standard payment to be met and your bond will remain active with the Nevada Department of Motor Vehicles for another term.
How Does a Licensed Business Owner Avoid Nevada Motor Vehicle License Bond Claims?
The Nevada Department of Motor Vehicles expects business owners that are licensed as brokers, dealers, rebuilders, lessors, distributors, manufacturers, off-highway vehicle dealers, and transporters to follow all rules and regulations pursuant to Chapters 482 and 490 of the Nevada Revised Statutes. Each license type has its own industry standards and obligations to be upheld; Jet highly recommends a thorough review of the listed statutes in order to stay updated on what is expected of you and your employees.
Code violations may lead to the DMV charging penalties or suspending/permanently revoking your business license, and any damaged party may pursue civil action which can result in a claim on your bond.
A Motor Vehicle License Bond claim may arise if the business owner or their employees commits an act of negligence, unethical reporting, criminal malfeasance, or fraud. For example, a motor vehicle dealer who does not transfer a title appropriately or chooses to sell a previously stolen vehicle is committing a violation. The consumer now faces financial damages and may take civil action against the licensed business owner. If the Nevada State court rules in favor of the claimant, the dealer must abide by the court's decision. Otherwise, a claim may be made upon the surety bond.
What Happens if I Get a Nevada Motor Vehicle License Bond Claim?
Immediately give Jet a call at 855-296-2663 if you receive a court-ordered Nevada Motor Vehicle License Bond claim notice. If you can, be ready to provide us with all available claim information and documentation. We will need these details for our own review and investigation of the accused license violation.
In cases where the Jet team finds the claim to be justified, we are legally obligated per the bond agreement to fulfill claim payouts up to the surety bond limit. You are ultimately held responsible for your own actions and the actions of your employees, and therefore will be responsible for reimbursing Jet for the claim payout made on your behalf. Unlike insurance, the bond payout guarantees a payout to a third party following fraudulent or negligent behavior, and guilt is not transferred to the surety company. An omission to fulfill this obligation will lead to future difficulties in obtaining Nevada surety bonds, particularly bonds that are required to achieve a motor vehicle business license.
What Are There Any Other Bonds an Auto Dealer Might Need?
If an auto dealer performs any vehicle registration or emission station services for the DMV, they would need to have a Nevada Vehicles Registration Program Bond. Jet offers this bond for either service provided.
