What is a Motor Vehicle Industry Surety Bond?
All body shops, wreckers and transporters involved in the vehicle industry are required to have a surety bond. A Motor Vehicle Industry Bond protects individuals from being injured by the action or actions of the principal and/or his employees or agents involved in any fraud or fraudulent representation. This surety bond protects any individual who is injured by the action or actions of the principal and/or his employees or agents involved in any fraud or fraudulent representation. Dealers, brokers, rebuilders, lessors, distributors, manufacturers, body shops, wreckers and transporters operating in the state all need to be bonded. The surety bond amount will vary based on the type of business activity.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours.
Which states require Motor Vehicle Industry Bonds?
Pacific Surety proudly offers Motor Vehicle Industry Surety Bonds in the following states:
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for Motor Vehicle Industry Bonds?
Bond amounts for Motor Vehicle Industry Surety Bonds vary and are based on obligee’s requirements for licensure. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much do Motor Vehicle Industry Bonds cost?
Pricing for Motor Vehicle Industry Surety Bonds will vary, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for anyone with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Motor Vehicle Industry Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Motor Vehicle Industry Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Motor Vehicle Industry Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How are Motor Vehicle Industry Surety Bonds purchased?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who does a Motor Vehicle Industry Surety Bond protect?
Motor Vehicle Industry Surety Bonds protect any individual who is injured by the action or actions of the principal and/or his employees or agents involved in any fraud or fraudulent representation. Dealers, brokers, rebuilders, lessors, distributors, manufacturers, body shops, wreckers and transporters operating in the state all need to be bonded. The surety bond amount will vary based on the type of business activity. Should fraud occur, a claim on the bond can be filed. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.