Do I need a MO auto dealer bond?
If you sell 6 or more vehicles, boats, Rvs and or trailers per year, you will be required to get a $50,000 MO auto dealer bond. You can be exempt from obtaining a dealer license and surety bond if you are a financial institution, a collector of antique vehicles, or disposing of vehicles used solely in your regular course of business. Should you have questions about the legal aspect of getting your license or the surety bond requirements, we urge you to contact the Missouri Department of Revenue.
How much does this bond cost?
The MO auto dealer surety bond is $50,000 — but that is not what you pay. Your annual 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 $250 for a one-year Missouri auto dealer bond! Call Absolute Surety to get a quote today.
How does my credit score affect my surety bond premium?
MO 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 MO 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 and have a cancellation issued — the state of Missouri 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.
When renewing your bond can also lower your premiums. Did you go the full last year with NO claims? This can certainly help you with a lower premium!
I just purchased my MO auto dealer surety bond — now what?
After you receive your MO 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. The MO Dept of Revenue, as of this publication, will only accept the original bond and POA
MO dealer garage liability insurance
Every applicant as a used motor vehicle dealer, power sport dealer, boat dealer, or wholesale auto dealer must provide the state of Missouri with their application a copy of their current garage insurance policy. We offer various garage insurance requirements and can assist you in getting the best rate possible on garage liability. Simply contact one of our agents today at 855-689-5106.Apply For Garage Insurance