MI Auto Dealer Bond
Do I need a MI auto dealer bond?
If you’re involved in selling five or more new or used vehicles in a 12-month period in Michigan, you’ll need a motor vehicle dealer license. If your dealer license is Class A, B or D, you’ll need a $10,000 MI auto dealer bond to go with it. Check out the Absolute Surety blog for more on how to get licensed as a new or used auto dealer (Class A or B license) in Michigan — then call Absolute Surety to get your auto dealer bond!
How much does this bond cost?
With $10,000 of coverage, Your Michigan auto dealer bond costs you only a fraction of its $10,000 coverage. The premium for this bond can range from $100-$1,000. Your premium depends on a review of your credit history — but don’t worry if your credit isn’t the best. Absolute Surety can get you the best rate for your Michigan motor vehicle dealer bond!
Give us a call at 1-855-689-5106 for your surety bond quote today!
When do Michigan auto dealer bonds expire?
This bond stays in effect continuously unless the surety cancels it with 30 days’ notice to the secretary of state. You’ll need to renew it each year, just like you’ll have to renew your Michigan motor vehicle dealer license. You also pay your premium each year along with any renewal fees. And your bond premium could decrease — if your credit gets better or the longer you have a bond without any claims, the lower your premium can get.
I just purchased my bond — now what?
When you receive your Michigan auto dealer bond, examine it for correct information:
- Exact business name and address appears on bond
- Individual owners and partners listed
- Bond number on the front
- Name of surety
- Power of attorney accompanying the bond or on file with the Department of State
- Five signatures
- Attorney-in-fact for the surety company
- Witness to the surety’s attorney-in-fact
- Licensed Resident Insurance Agent who sold the bond
- Principal (you, the bondholder)
- Witness to the principal
After verifying that information is correct, submit the original surety bond (not a copy!) to the Secretary of State along with your application.