Used Motor Vehicle Renewal Bond Quote Request
Requirements set by the Georgia State Board of Registration of Used Motor Vehicle Dealers
In addition to garage liability coverage, a $35,000 Used Motor Vehicle Dealers Surety Bond is also required by the State of Georgia in order to obtain a Used Car Dealer license. This is a three-party agreement that legally binds together the principal (the Dealer), the Obligee (the State of Georgia) and the Surety Company who sells the bond. A bond provides a financial guarantee that contracts and other business deals will be completed according to mutual terms. A Surety Bond provides protection for consumers against fraud and misrepresentation.
Used Motor Vehicle Dealers Surety Bonds expire on March 31 of even numbered years (2022, 2024, 2026, etc.) and it’s important to note that this also aligns with the expiration of dealer’s licenses. A Surety Bond is not insurance. It will not indemnify the principal if a claim is paid. If a dealer sells a consumer a vehicle with a fraudulent title and the consumer makes a claim against the dealer’s surety bond, the bond company will indemnify the consumer and then require repayment from the dealer. When a dealer signs a surety bond contract they are agreeing to indemnify the Bond Company if a claim is paid. Therefore, in order to qualify for a surety bond, the bond company reviews the dealer’s credit history and determines if they are eligible for a bond.
Only the owners of a dealership can apply for a dealer bond. If there are multiple owners in the dealership, all owners will need to be on the bond application, and the premium will be based the credit history of all of the owners. A family member or friend of the owner of the dealership (brother, dad, mother) can not apply for a dealer bond because they have better credit history, UNLESS, they are an owner of the dealership.
Moving Coverage to Reeves Insurance Associates, Inc.
Reeves Insurance quotes used motor vehicle bond with the top carriers in Georgia. If your bond is with another agency, but with a carrier we have a contract with, we can move your bond to Reeves Insurance and obtain the same premium of your renewal offer from your current bond carrier. In many cases, we can move you to a new bond carrier at a cheaper premium. This way, you’ll have all coverages with Reeves Insurance, and we can service all policies for you at once. Either the same carrier or new carrier, we’ll need to following info to do so: