Motor vehicle, motor power recreational vehicle (MPR), and trailer dealers in North Dakota are required to have a surety bond in order to be licensed. With Jet Insurance Company, dealers can get their bond in a couple of minutes online.
The North Dakota Department of Transportation - Motor Vehicle Division Dealer Services oversees these licensees and the filing of the bond. The bond is used as financial security for people damaged by dealers failing to uphold their legal responsibilities.
Auto dealers can pay as low as $14 a month or $140 for a year-long bond term. MPR and trailer dealer bonds start at $10 a month or $100 for one year. Jet’s annual and multi-year terms are at discounted rates.
|Bond Type||Limit||Monthly||1 Year||2 Years|
|Motor Vehicle Dealer (New and Used)||$25,000||$14||$140||$245|
|MPR Vehicle Dealer||$10,000||$10||$100||$175|
The rates shown in the chart above are preferred tier rates, meaning applicants with good credit will qualify for them. Those with poor credit and/or a new business can expect to pay more but still find savings with Jet. We have eliminated middleman agents and brokers, so you will never see any added fees.
The North Dakota Legislature enacted Title 39 of the North Dakota Century Code which outlines the rules and regulations surrounding dealerships in the State. The surety bond is one of those requirements deemed necessary by the North Dakota State Legislate Branch and North Dakota is not alone. Every State in the U.S. has done the same and requires a dealer bond.
Surety bonds for motor vehicle dealers protect consumers and other businesses transacting with dealers from financial harm—specifically, perils that occur from the dealer failing to follow their lawful duties, such as the transfer of clean title. The bond is set at a limit thought to be adequate for the reimbursement of the damaged party.
The surety bond allows for a third-party surety carrier (Jet) to guarantee a level of financial stability to the Department of Transportation. If needed, the surety carrier will make payment when the dealer fails to make amends for damages they have caused.
The North Dakota Motor Vehicle Division has provided documentation regarding the dealer licensing. Check out your related license requirement below.
|Dealership Type||Bond Required|
|New and Used Motor Auto Dealers||$25,000 Motor Vehicle Dealer Bond|
|Motor-Powered Recreational Vehicle Dealer||$10,000 Motor-Powered Recreational Vehicle Dealer Bond|
|Trailer Dealer||$10,000 Trailer Dealer Bond|
First, you have to purchase the bond from a surety carrier. With Jet Insurance Company this takes a couple of minutes online or by calling (855) 296-2663.
Once purchased you will get a copy of the bond and receipt for your records. Jet will send you the original signed, sealed, and notarized form for filing. During checkout, you will have the option to have the bond overnighted if necessary. The bond is to the Department of Transportation at the following address:
State of North Dakota Department of Transportation
Motor Vehicle Division Dealer Services
608 E. Boulevard Ave.
Bismark, ND 58505
Yeah, you could. Should you operate a branch office, the North Dakota Department of Transportation may deem there is a greater outstanding risk and thus require extra surety safeguard. The Department of Transportation will determine what amount of a bond is needed. Dealers just need to apply for the bond online and let us know what bond amount is needed during the application.