FAQs

Among others, they offer Garage Liability, Physical Damage, Garagekeepers Liability, Personal Injury, False Pretense, Title Errors and Omissions/Truth In Lending/Federal Odometer, Broadened Coverage, and Commercial Property.

The very nature of the auto broker side of the business dictates that the sales transaction needs to take place between a retail car dealer and a buyer. The auto broker helps source the vehicle to be purchased but never actually buys or sells [...]

created the Surety Bond FAQ exactly for this reason. We have a deep understanding of the insurance and bond business and enjoy imparting that knowledge to others that have questions!

The issuing governing entity controls whether a dealer bond is mandated and determines the required bond limit. The surety company issues a bond that is signed by their power-of-attorney, stamped with an embossed seal, and then notarized, thus validating it as an official document. Oftentimes bonds are required before business [...]

A Used Car Dealer Bond is a legal contract that guarantees and protects customers. The Dealer Bond promises to provide aid in the recovery of financial loss resulting from dealer fraud or unethical business activity. Most states require motor vehicle dealers to procure a [...]

All states have a specific division created to deal with overseeing the licensed vehicle dealers doing business legally. In states like Arizona, this division is called the Motor Vehicle Department (MVD) and in states like California, dealers will recognize the name Department of Motor Vehicles [...]

The applicant must be approved by a surety bond company. The bonding company is making a promise to the obligee (the DMV in this case) that the dealer will follow applicable states and federal regulations and pay all their bills. You can apply for [...]

This is the #1 most common question we receive even though it's actually a DMV pre-licensing test question. The answer is a little complicated but hopefully, this makes sense. There is a carve-out in the law that allows a $10,000 bond for motorcycle-only retail dealers. [...]

Surety bond premiums vary due to the following reasons: Surety bond limit ($10,000 or $50,000 in California). Credit Score. The Experian Credit Score is what most surety bond carriers will rate your bond based in 2018. Application and Financial Credentials. Financials are usually not [...]

The most common reason we see for a high-priced bond is the dealer not having established credit. In this scenario, no credit is basically the same as bad credit. There are a few reasons why folks don't have established credit when they are getting their [...]