New Jersey Auto Dealer Bond

New Jersey Auto Dealer Bond

Motor vehicle dealers doing business in New Jersey are required to file a $10,000 surety bond with the Motor Vehicle Commission. This includes new and used vehicle dealers and leasing companies. The bond provides a means of restitution to those financially harmed by the actions of a licensed dealer.

Your Auto Dealer Bond will be ready in minutes—click the button to get started:

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No need to worry about added fees. As the surety company, Jet cuts out the middlemen (the ones who work for commissions) to work directly with its customers, allowing for lower rates and a quicker process.

How Much Does a New Jersey Motor Vehicle Dealer Bond Cost?

You can pay as low as $6 per month, $60 for one year, or take care of two years upfront for $105. Prices are the same for the Leasing Company Bond, New and Used Car Dealer Bond, and Used Car Dealer Bond. 

Bond TermCost
Monthly$6
1 Year$60
2 Year$105
New Jersey Auto Dealer Bond Cost

The rate you’re approved for is dependent on your personal credit and years of experience. The soft credit check is standard in the surety industry for Auto Dealer Bonds to assess risk, but it won’t affect your credit score.

What Purpose Do New Jersey Auto Dealer Bonds Serve?

Just like the other 49 states, New Jersey utilizes surety bonds for auto dealers to protect the state and its people from fraud and negligence. Surety bonds give the public a way to be reimbursed should they incur monetary loss after purchasing a vehicle from a dealership. If a dealer refuses or fails to address the issue in a timely manner, a bond claim can be filed. 

Valid claims will be paid out by the surety company (Jet) to the claimant. Because surety bonds can only provide payment for intentional or reckless acts, the licensee is liable to restore the bond to its full limit by paying back the surety company.

The New Jersey Motor Vehicle Commission enforces the surety bond, among several other requirements, for dealers and leasing companies to be licensed. Failure to comply with regulations can result in a bond claim, license suspension/revocation, and/or fines or fees. Title 13, Chapter 21, Subchapter 15 lays out the laws for New Jersey motor vehicle dealers.

Getting Your Surety Bond With Jet

Good news: you can complete the entire bond process from start to finish in three minutes.

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The application collects information including your business name, address, phone number, email, and social security number (for the soft credit check). Once you get through the necessary steps, monthly, annual, and multi-year pricing will be shown on the screen. Simply select your preferred bond term and put in your credit card information. A successful payment will return an electronic copy of the bond and your receipt.

When applicable, Jet will file the bond for you. If you need to file the bond yourself, you can do so at the following address:

New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
PO Box 170
225 East State Street
Trenton, NJ 08666

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.

New Jersey Motor Vehicle Dealer Bond Form Example

New Jersey 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: