North Dakota Auto Dealer Bond

North Dakota Auto Dealer Bond

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. 

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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.

What Is the Lowest Price for a Dealer Bond in North Dakota?

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 TypeLimitMonthly1 Year2 Years
Motor Vehicle Dealer (New and Used)$25,000$14$140$245
MPR Vehicle Dealer$10,000$10$100$175
Trailer Dealer$10,000$10$100$175
North Dakota Auto Dealer Bond Prices

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.

For What Reason Does North Dakota Require a Dealer Surety Bond?

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 TypeBond 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
North Dakota Auto Dealer Bond Limit Requirements

How Does a Dealer Get the Bond Filed?

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.

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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

What About A Motor Vehicle Dealer Branch Office, Do They Need A Bond?

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.

Read More About Motor Vehicle Dealer Bond Claims and Bond Handling With Jet

How to Renew My Bond

See the in and outs surrounding renewing with Jet. It’s super easy.

How to Cancel My Bond

Read about cancelling your surety bond here.

Bond Claim Process

North Dakota dealers can read more on what leads to a claim and what happens after a claim is made.

North Dakota Motor Vehicle Dealer Bond Example

North Dakota 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: