Maryland Motorcycle or Trailer Dealer Bond
Know the who, what, and how of this surety bond today!
What is a Motorcycle or Trailer Dealer Bond?
To obtain a license, motorcycle or trailer dealers must submit a surety bond to the Motor Vehicle Administration of the Maryland Department of Transportation.
The purpose of the surety bond is to provide risk coverage in case the motorcycle or trailer dealer commits an act that is against the Transportation Article of the Annotated Code of Maryland and other relevant rules.
When this happens, the person who has suffered damages will be eligible to recover the amount lost by filing a bond claim.
What is the Motorcycle or Trailer Dealer Bond amount?
LICENSE APPLICANT
MOTORCYCLE DEALER (selling new motorcycles) – the bond amount will be equal to the estimated volume of sales in the initial license year. The minimum bond amount is $50,000.
MOTORCYCLE DEALER (selling used motorcycles) – The minimum bond amount is $15,000.
TRAILER DEALER (selling trailers that are more than 15ft.) – The minimum bond amount is $15,000.
LICENSEE
MOTORCYCLE DEALER (selling new motorcycles) – the bond amount will be based on the number of new motorcycles sold during the previous license year.
| NUMBER OF NEW MOTORCYCLES SOLD | BOND AMOUNT |
|---|---|
| 1 to 500 | $50,000 |
| 501 to 1,000 | $75,000 |
| 1,001 to 2,500 | $100,000 |
| Over 2,500 | $300,000 |
MOTORCYCLE DEALER (selling used motorcycles) – the bond amount will be based on the number of used motorcycles sold during the previous license year.
| NUMBER OF USED MOTORCYCLES SOLD | BOND AMOUNT |
|---|---|
| 1 to 250 | $15,000 |
| 251 to 500 | $25,000 |
| 501 to 1,000 | $35,000 |
| 1,001 to 2,500 | $50,000 |
| Over 2,500 | $150,000 |
TRAILER DEALER (selling trailers that are less than 15ft.) – The bond amount is $5,000.
TRAILER DEALER (selling trailers that are more than 15ft.) – the bond amount will be based on the number of trailers sold during the previous license year.
| NUMBER OF TRAILERS SOLD | BOND AMOUNT |
|---|---|
| 1 to 250 | $15,000 |
| 251 to 500 | $25,000 |
| 501 to 1,000 | $35,000 |
| 1,001 to 2,500 | $50,000 |
| Over 2,500 | $150,000 |
If you have an excellent credit score, you will be eligible to pay for a low bond premium!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Motorcycle or Trailer Dealer Bond?
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the surety bond conditions?
- The surety who will issue the bond should be recognized in the State of Maryland
- The Obligee will be the Administrator of Motor Vehicles, State of Maryland
- The motorcycle or trailer dealer must comply with the provisions of the Transportation Article of the Annotated Code of Maryland as well as the rules and regulations of the Motor Vehicle Administration of the Maryland Department of Transportation
- If the motorcycle or trailer dealer commits a violation, the aggrieved party will be eligible to file a claim against the bond