Auto dealerships operating within the state of Florida must obtain the proper licenses and a $25,000 FL Dealer Bond. This is to ensure the motor vehicle dealership is operating within the regulations outlined by the Florida Highway Safety and Motor Vehicles Department. These bonds may also be referred to as Motor Vehicle Dealer (MVD) Bonds, DMV Bonds, Vehicle Dealer Bonds, Car Dealership Bonds, Car Dealer Bonds & Used Car Dealer Bonds.
How Much Do They Cost?
Florida dealer surety bonds require underwriting and are based on personal credit of all the owners. You can expect to pay anywhere from $188 and up a year based on excellent credit. For dealerships with lower credit ratings, we can still offer the most competitive premiums with financing being an option as well to help you purchase the appropriate bond.
The Bond Penalty Amount – $25,000 – Rates Start from $188
The Bond Expiration Date– All Florida dealer bonds expire on April 30th.
The State of Florida requires a 30-day cancellation clause on the bond. What this means is that on April 1st of the expiration year, if you have not renewed your surety bond, the insurance company will send you and the Florida Dept. of Highway Safety a cancellation notice at which time you will have 30 days to renew the bond. If you switch insurance companies, the bond will cancel and you will be issued a new original surety bond.
Why Do I Need A Dealer Bond?
FL dealer bonds are required by the Florida Department of Highway Safety and Motor Vehicles. Any person that is licensed as an Independent motor vehicle dealer (VI), Wholesale motor vehicle dealer (VW), Motor vehicle auction (VA), or a Salvage motor vehicle dealer (SD) must maintain an active dealer surety bond in order to keep their license active. Failure to keep a current bond will result in the loss of your dealer license with the State of Florida.
Who needs the Florida Used Motor Vehicle Dealer Bond?
In the State of Florida, Auto Dealers are required to obtain a $25,000 Motor Vehicle Dealer Bond to be in compliance with Section 320.27 of the Florida Statutes. All Florida motor vehicle dealer bonds have a common expiration date of April 30th.
What is the Florida Used Motor Vehicle Dealer Bond?
The Motor Vehicle Dealer Bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your auto dealer bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.
What else do I need besides the Used Motor Vehicle Dealer Bond?
In addition to the bond, the State of Florida requires that you carry garage liability insurance. Motor vehicle dealers must obtain:
A garage liability insurance certificate which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection; OR
A general liability insurance policy coupled with a business automobile policy, which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection
What To Do After Purchasing A Florida Dealer Bond
After you receive your auto dealer bond from Absolute Surety, you will need to sign it, submit it with the attached power of attorney to your DMV office (along with other licensing paperwork required for your entity). Please contact your regional office to see whether they will need the original or will accept a copy.
Dealers will submit the original signed bond form to the State of Florida Department of Highway Safety and Motor Vehicles at the following address: