Do I need a Indiana auto dealer bond?
If you sell more than 12 vehicles in a twelve-month period in Indiana, you need an Indiana auto dealer bond. You’ll also need to get licensed with the Indiana Secretary of State.
Auto dealers aren’t the only licensees who need this $25,000 surety bond. If you apply for any of the following licenses in Indiana, you’ll need to be bonded:
- Automobile auctioneer
- Converter manufacturer
- Automotive salvage recycler
- Transfer dealer
- Auto mobility dealer
How much does this bond cost?
The Indiana auto dealer surety bond is $25,000 — but that’s not what you pay. Your premium depends on a review of your financial history, but you can expect to pay anywhere from 0.5 to 5% of the surety bond amount.
That means you could pay just $125 for a one-year Indiana auto dealer bond! Call Absolute Surety to get a quote today.
How does my credit score affect my surety bond premium?
Indiana auto dealer bonds require underwriting. This means an underwriter evaluates your financial history to determine your bond premium. A principal with few risk factors in their history — meaning they have a high credit score — will likely pay a lower premium than a borrower who poses more of a risk.
When do Indiana auto dealer bonds expire?
You will need to renew these bonds on an annual basis. The term is usually a 1 year period that expires from the date the bond was issued. Two year bonds are offered on some premiums. Don’t let your surety bond coverage lapse — the state of Indiana will suspend your dealer license if there is a lapse in bond coverage. We will send you via email and mail several invoices to let you know your bond is coming up for renewal.
Renewing your bond can also lower your premiums. If there were no claims on your bond and/or your credit score improved, your premium could go down.
I just purchased my auto dealer surety bond — now what?
After you receive your Indiana auto dealer bond, send a signed copy along with your completed application and attached power of attorney. You can submit the application and additional documents via mail or in person.
Indiana dealer garage liability insurance
Indiana auto dealers need garage liability insurance in addition to a surety bond. Here’s the coverage you’ll need:
- $100,000 liability insurance for bodily injury to one person
- $300,000 liability insurance for one accident
- $50,000 liability insurance for property damage