North Carolina Auto Dealer Bond

North Carolina Auto Dealer Bond

The North Carolina Department of Transportation Division of Motor Vehicles requires a $50,000 surety bond to be filed for a motor vehicle dealer to be licensed as a franchise, used, wholesale, distributor, factory branch, or manufacturer.

Click the quote button and get your bond in minutes!

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A $25,000 bond is required for each additional location. 

Jet provides auto dealers direct access to surety underwriters and claims handlers without middlemen agents or brokers, simplifying the bond process from purchase to filing.

What Is the Price for a North Carolina Auto Dealer Bond?

The cost for a $50,000 Dealer License Bond starts at $220 for one year or $22 per month. Bonds for additional locations start at $110 a year or $11 monthly each.

Rates are based on the personal credit of the dealer, which is a soft check that won't affect your credit score. The chart shows preferred pricing.

Bond TermCost
Monthly$22
1 Year$220
2 Years$385
3 Years$550
NC Motor Vehicle Dealer Bond Rates

Other companies use underwriting to assess many arbitrary factors, extending the time it takes to provide a rate. Jet streamlines the process to have an immediate rate available for purchase. 

Jet is the only company to offer monthly payments on the North Carolina Auto Dealer Bond. Gone are the days of 30-40% down payments and 20-30% APRs! The monthly payments require zero down payment, zero interest, and zero fees. You can cancel the bond at any time.

Can Jet File the North Carolina Motor Vehicle Dealer Bond for Me?

Yes! Jet will send your surety bond directly to the DMV for filing. When you have purchased the bond, the bond form will be completed with our surety seal and necessary signatures. The original bond will be mailed to the DMV. 

For new dealership applicants, you may need the original bond form to submit along with the initial licensing paperwork. Jet can send it to you upon request within the online application process. When you have all documentation ready, mail all paperwork to:

North Carolina Department of Transportation
Division of Motor Vehicles
3129 Mail Service Center
Raleigh, NC 27697

Can I Cancel My Auto Dealer Bond and Get a Refund?

Yes; unlike other surety companies that withhold minimum earned premiums and commission fees, Jet will provide you a full refund on any unearned premium. Any time that the bond has not been “used” will be reflected in your refund. 

If you are enrolled in the monthly payment plan, you’ll simply need to contact our team to cancel your bond and we will stop the automatic payment withdrawals.

Jet will send out a cancellation notice to the Division of Motor Vehicles immediately following your request to cancel. However, since the DMV keeps the bond in effect for an additional 30 days, that time must be accounted for in the return premium as the bond remains active.

What Is the Purpose of the Auto Dealer Bond?

Surety bonds for vehicle dealers ensure the licensee conducts business according to the Motor Vehicle Dealers and Manufacturers Licensing Law (General Statutes Chapter 20, Article 12) and the Vehicle Mileage Act (Article 15). The North Carolina Division of Motor Vehicles enforces these statutes upon auto dealers as part of their mission to connect people safely with motor vehicle products.

This bond is a guarantee provided by Jet covering any financial harm that falls upon the public due to the fraudulent or negligent actions of a car dealer. Think of Jet as a person vouching to North Carolina that you, the dealer, are trustworthy to sell vehicles in the state. The state expects you to abide by regulations and address customer complaints, and so does Jet who is guaranteeing your business with a surety bond.

How Does a Motor Vehicle Dealer Avoid Bond Claims?

The best way to avoid claims is to follow licensing regulations and conduct business in an honorable manner. If there is misconduct, a person that has purchased a motor vehicle and suffered damages may file a complaint with the DMV. This complaint may be resolved between the parties before it escalates into a bond claim. 

Under North Carolina General Statutes 20-294, certain acts by a motor vehicle dealer may be cause for disciplinary action from the DMV including revocation, suspension, or denial of a license. Examples of these acts include:

These are just some of the ways a dealer can get in trouble. A motor vehicle dealer guilty of financial damage to a person may face a claim against the Auto Dealer Bond for reimbursement to that person.

What Happens if a Bond Claim Is Filed?

In the event that a claim is filed against your Dealer License Bond, Jet will protect you from false accusations. At the outset of the investigation, Jet will request any evidence from the claimant and any applicable records from you. 

The DMV must be notified within 10 days of any action starting the bond claim process. If the investigation concludes and the claim is valid, Jet will reimburse the customer in the amount of the claim, up to the bonding limit. However, since bonds are like an extension of credit, the dealer is ultimately held responsible for the amount that was paid out and must restore the bond to its full amount by reimbursing Jet for the claim payout.

How to Apply for a North Carolina Dealer Surety Bond

You can get your Auto Dealer Bond in just a few minutes. Once you have entered basic information, Jet will offer an approved rate that is ready for purchase.

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An electronic copy of the bond and receipt is available immediately after purchase for your own records.

How to Renew the Auto Dealer Bond With Jet

If you enroll in the monthly payment program, you will not have to worry about renewing your bond! Each payment that is received will keep your bond on file. 

For bonds that are purchased on annual terms, a renewal payment will need to be submitted to continue coverage. When the term is drawing to a close, Jet will send out a renewal notice well in advance of the bond expiration date. The renewal can be processed online instantly, or you can mail in payment. If any payment terms need to be updated, changes can be made during this time.

Does the Auto Dealer Bond Expire?

Not with the NCDMV. The Auto Dealer Bond remains active until cancellation has been requested by Jet. The bond will only expire on a specific date with Jet if an annual renewal or monthly payment is not made.

Does a Motor Vehicle Dealer Need Any Other Coverage?

Auto dealers must also hold a comprehensive liability insurance company policy for dealer plate coverage. A Garage Coverage Form-Automobile Dealer Supplementary Schedule policy number or binder number from an insurance company can also be used for dealer plate coverage.

North Carolina Motor Vehicle Dealer Bond Form Example

North Carolina Motor Vehicle 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: