Pennsylvania Auto Dealer Bond

Pennsylvania Auto Dealer Bond

The Pennsylvania Department of Transportation requires a surety bond for several vehicle business types, including motor vehicle dealers and manufacturers, full agents, salvors, messenger services, and card agents. The bond is a guarantee of compensation to those financially harmed by a licensee’s forbidden actions.

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How Much Does a Pennsylvania Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond Cost?

The cost depends on several factors: 

  1. Bond Type
  2. Bond Limit
  3. Credit Standing
  4. Years in Business

For those who need the $20,000 Manufacturer/Dealer Bond, rates start at $10 per month and $100 for one year. The lowest rates for the $30,000 Full Agent Bond are $12 per month and $125 for one year. Additional bond types and their corresponding starting prices are reflected in the chart below.

Bond TypeBond LimitMonthly1 Year
Dealer/Manufacturer$20,000$10$100
Full Agent$30,000$12$125
Card Agent$3,000$10$100
Messenger Service$50,000$40$400
Salvor$10,000$10$100
Pennsylvania Vehicle Dealer Bond Prices

A credit check is required to be approved for an Auto Dealer Bond, Vehicle Manufacturer Bond, or any other vehicle-related business bond through the Pennsylvania Department of Transportation (PennDOT). This is standard across the surety industry, and it will not affect your credit score.

Getting a Vehicle Business License With PennDOT

As you know, there are several business types that need licenses through the Pennsylvania Department of Transportation. Each license type has specific requirements. Details can be found in the following page links:

Manufacturer/Dealer: All motor vehicle dealers and manufacturers in Pennsylvania

Card Agent: Authorized PennDOT agent that can complete vehicle title applications and transfer existing plates from one vehicle to another if owned by the same customer—cannot issue new temporary registration plates.

Messenger Services: Private business contracted to provide vehicle registration and driver licensing services online.

Agent Services (Full Agent): Does everything a Card Agent & Online Messenger can do—Authorized PennDOT agent that can complete all applications in regards to titling and registration and can issue temporary registration.

Salvor: Someone who acquires abandoned vehicles to disassemble, recycle, sell, rebuild, and/or exchange them (or their parts). 

What Purpose Do Motor Vehicle Dealer, Manufacturer, Agent, and Salvor Bonds Serve?

The general purpose of surety bonds is to provide a means of restitution to anyone that suffers monetary loss due to the actions of a licensed business. Motor Vehicle Dealer Bonds are required in all 50 states, and several other vehicle-related license types also need surety bonds in those states. 

In Pennsylvania, the Department of Transportation is tasked with enforcing regulations upon auto dealers, vehicle manufacturers, full agents, card agents, messenger services, and salvors, the surety bond being one of them. Should a licensee fail to comply with Pennsylvania laws, there are several disciplinary actions that can be taken, including a bond claim, license suspension or revocation, and fines or fees. 

A surety bond is unlike insurance—it only pays claimants when the licensee has committed a negligent or fraudulent act and refuses to fix the issue. Because of this, any claim payout made by the surety company (Jet) must be paid back to the surety by the licensee. The licensee will be unable to further do business until the bond is restored to its full bonding limit.

To read license-specific legislation, refer to the links below:

Manufacturer/Dealer (75 Pa.C.S. 1335)

Full/Issuing Agent, Card Agent, Messenger Service (75 Pa.C.S. 7503.1)

Salvor (75 Pa.C.S. 7302)

Getting Your Surety Bond With Jet

The bond process takes less than five minutes to complete from clicking the button below to submitting your payment.

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General business and personal information is collected to get you approved rates. Then, you can choose between monthly, annual, or multi-year for your bond term. Next, you enter in credit card information and upon successful payment, your bond form and receipt will be available to download.

The original signed and sealed bond form must be sent to PennDOT at the following address:

Pennsylvania Department of Transportation
PO Box 68283
Harrisburg, PA 17106

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.

Pennsylvania Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond Form Example

Pennsylvania Auto Dealer Bond Form

Notary Bond Application:

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:

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:

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: