Vermont Auto Dealer Bond

Vermont Auto Dealer Bond

If you are selling five or more vehicles per year, a Motor Vehicle Dealer Bond is required by the Vermont Department of Motor Vehicles. The surety bond is just one part of the licensing process utilized to protect the public from financial harm caused by immoral/illegal dealer practices.

GET A QUOTE

The application only takes a few minutes and your bond will be ready to download.

How Much Do Vermont Motor Vehicle Dealer Bonds Cost?

The rate you receive will be based on three main factors: the bond limit, your personal credit, and the number of years you’ve been licensed as a dealer. The chart below reflects the starting prices for the Vermont Dealer License Bond.

Bond LimitMonthly1 Year2 Years
$20,000$10$100$175
$25,000$11$113$197
$30,000$14$135$236
$35,000$15$158$276
Vermont Motor Vehicle Dealer Bond Rates

The bond limit is determined by the DMV, based on the number of vehicles sold per year:

$20,000: Less than 25 vehicles sold per year
$25,000: 25-100 vehicles sold per year
$30,000: 101-250 vehicles sold per year
$35,000: New applicant OR 251+ vehicles sold per year

Jet’s monthly payment option is exclusive to the market—it allows you to pay for the bond as you go. The advantage of the annual and multi-year terms is saving some money down the road by paying for the bond in full. No matter what, we’ve got pricing options that work for everyone.

Why Does the Vermont Department of Motor Vehicles Require Surety Bonds for Dealers?

Surety bonds, in general, are used to guarantee compensation for anyone that has been victimized by a regulated person’s negligent or fraudulent actions. When speaking about Auto Dealer Bonds, specifically, the bond affords protection to anyone who has purchased a vehicle from a licensed dealer and was financially harmed, say by the dealer tampering with the odometer to sell the car at a higher price. 

The Vermont Department of Motor Vehicles is responsible for regulating dealerships in the state. The DMV’s thorough licensing process ensures dealerships comply with the laws or are penalized accordingly. The surety company (Jet) is there as the financial backer on the bond in case things go awry and a valid claim is filed against the car dealer. It doesn’t end there, though, the dealer is liable to pay the surety company back—more on that in the Bond Claim Process article link found below.

To read Vermont’s dealer legislation, refer to Vermont Statutes, Title 23.

How to Get a Vermont Auto Dealer Bond

From the click of the below button to bond form download, the bond process can be completed within five minutes. 

GET A QUOTE

The application asks for basic information like your business name and address, social security number for the soft credit check (which won’t impact your credit score), contact information, etc. You’ll be given a few bond term payment options and be able to put in your credit card information to receive your receipt and digital bond form.

Bonds must be filed to the address below. When able, Jet will take care of this for you.

Vermont Department of Motor Vehicles
120 State Street
Montpelier, VT 05603

If you need to cancel your bond at any time, email [email protected]. Once we notify the DMV, the bond will remain on file for 30 days before being cancelled.

We produce these bonds as Jet Insurance Services through our partnership with Lexington National Insurance Corporation.

Read About Dealer Bond Claims and Bond Handling With Jet

How to Renew My Bond

See the ins 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.

Vermont Motor Vehicle Dealer Bond Form Example

Vermont 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: