What is a Minnesota Motor Vehicle Dealer Bond?
All licensed Motor Vehicle Dealers in the State of Minnesota is required to procure and maintain a surety bond. The requirement is enforced by the Division of Driver and Vehicle Services of the Minnesota Department of Public Safety.
The surety bond will act as a guarantee that the licensed motor vehicle dealer will perform his or her duties by § 168.27 of the Minnesota Statutes, as well as the rules of the Minnesota Department of Public Safety.
What is the bond amount?
$ 5,000 – the bond amount required for dealers of the following:
- Boat trailers
- Snowmobile trailer
- Horse trailer
- Motorized bicycle dealers
- Trailers designed to transport small construction or farm equipment with a manufacturer’s rated carrying capacity of 15,000 pounds
$ 50,000 – all other motor vehicle dealers
Those who have excellent credit scores may qualify for a very low bond premium!
Find out what you need to pay by getting your FREE quote here!
What are the bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
- The surety bond should be made payable to the State of Minnesota
- The surety bond should be submitted to the Registrar of Motor Vehicles
- The licensed Motor Vehicle Dealer is obligated to abide by § 168.27 of the Minnesota Statutes, the rules and regulations of the Division of Driver and Vehicle Services of the Minnesota Department of Public Safety, and all the other applicable rules that govern motor vehicle dealers in Minnesota
- If the licensed Motor Vehicle Dealer commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- In case of cancellation, a 30-day notice is required
How can I obtain this type of bond?
To secure this type of bond, the licensed Contractor must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Do you need further information about this bond? Talk to one of our expert surety bond agents today at 800-333-7800!