Louisiana Auto Dealer Bond
How Much Do Louisiana Auto Dealer Bonds Cost?
This is the question we hear the most as soon as we answer the phone. I wish there was a simple answer for this. However, the fact is that rates can vary greatly depending on several factors. First, the credit rating of the owners will have the greatest impact on the premium or price paid for the surety bond. Simply put, the better the credit rating, the cheaper the cost of the bond. However, this is not the only factor to take in when purchasing a Louisiana auto dealer bond. Have you had a claim in the past? If so, and an insurance company has paid out a claim then chances of you being able to obtain a surety bond will be pretty slim.
Louisiana auto dealer bonds will range from $490 for 2 years and up. This is a small percentage of the penalty amount which is currently set by the state at $50,000. The term of the Louisiana dealer bond must be for 2 years. This is set by the LAUMVC and cannot be altered.
Do I Need A Louisiana Auto Dealer Bond?
The State of Louisiana mandates that all persons wanting to get a used car dealer license post a $50,000 surety bond with the Louisiana Used Motor Vehicle Commission. Any licensed auto dealer must submit a 2 year $50,000 Louisiana auto dealer bond.
What Does My Personal Credit Have To Do With The Auto Dealer Bond Premium?
Premiums of the Louisiana auto dealer bond will be greatly based on the owners personal credit score. This is because if a surety company has to pay out a claim, they want to make sure the applicant has a good track record of paying that debt back. Unlike insurance, if you have a valid claim on your auto dealer bond, the insurance company will look to the applicant to repay the debt. Untimely payments on your report will result in a higher bond premium.
When Does The Louisiana Auto Dealer Bond Expire?
The Louisiana surety bond will expire 1 year or 2 year from the effective date. This is determined by the location of the dealership.
I Just Purchased My Auto Dealer Surety Bond…Now What?
Once you have received the bond from Absolute Surety, you will need to file it with the Louisiana used motor vehicle commission. You can provide a copy via email, fax or mail.
The auto dealer bond is also known as the MVD Bond, motor vehicle dealer bond, auto dealership bond, used car dealer bond, etc. No matter what you call them…we can write them!
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