An auto dealer bond (a.k.a Motor Vehicle Dealer Bond, Car Dealer Bond, Auto Broker Bond) is a surety bond required by the government in order for auto dealers to obtain their license. It is a prerequisite in many states for obtaining a car dealer license.
Auto dealer bonds protect car buyers, car loan creditors, and the government from financial harm as a result of the auto dealers violating licensing laws. Similar to a dealer license, a dealer bond must be active as long as the dealer is in business.
In the US, all states require an auto dealer bond to be licensed as an auto dealer. However, the bond amount varies based on each state.
For example, in California, auto dealers that sell more than 25 cars in a given year are required to maintain a $50,000 bond.
Every state and licensing board has their own rules. You can use the dropdown below to check the specific requirements for your state.
There are many types of auto dealer bonds. To determine what bond you need, you need to determine what type of dealership you own and then research individual state law.
Yes, when issuing a contractor bond, insurance companies will typically conduct a "soft credit check" on individual contractors to determine price and eligibility. It's important to note that this type of credit check will not have any impact on an individual’s credit score.
The following information is collected to determine the eligibility and pricing of a contractor bond:
We’ll send you via email a PDF copy of the bond once it’s been processed. This will serve as proof that you are bonded.
Generally speaking, a credit score under 600 is considered “bad credit”. We have several insurance partners that specialize in this market, so if you have a less than perfect credit score we can help. Give us a call and we’ll shop around to get you the lowest possible quote.