Don't Be Fooled By Junk Auto Dealer Bonds

Don't waste hundreds of your hard earned money on a worthless auto dealer bond from a sub-par surety company.

Choose the Wrong Surety, Lose Hundreds

The surety company who writes your bond must meet certain requirements to write your dealer bond, such as being licensed in the state you're operating in. Just because a surety company is licensed in one state doesn't guarantee it's licensed in yours. Also, obligees usually require surety companies to have a certain rating from companies such as A.M. Best, indicating they have the financial strength to back your surety bond.

If you get a bond from a surety company that isn't licensed in your state, or one that gets downgraded or goes bankrupt and closes up shop, your bond becomes a "junk auto dealer bond", it will be rejected by the state and you will have to purchase a new one. You usually cannot get your money back if your bond is rejected because surety bond premiums are "fully earned", meaning no refunds of premium are given.

Choose the Right Surety Company

Low Rates Don't Always Save You Money

There are many surety companies out there, but not all are stable enough or qualified to be writing the surety bonds you need and be around for the long term. The surety industry is currently in a "soft market", which translates to easier underwriting criteria and surety companies writing bonds at very low rates for just about anyone.

Remember, the surety bond is a form of credit provided by the surety company that guarantees dealers will act professionally and won't trigger any claims. If bonds are provided to dealers who aren't financially responsible or strong enough to pay back claims if they arise, the surety company will have to pursue the dealers legally, which often will cost thousands of dollars. Because of this, surety experts expect huge losses for many of these surety companies in the near future, which will likely cause bankruptcies and closures, forcing dealers to pay for new bonds elsewhere.

Top Bond Agencies Will Pair You with the Best Sureties

Choosing the right bond agency is often more important than finding the right surety company. Good bond agencies work with many surety companies, and will only pair you with ones that provide reasonable prices and have the industry experience to ensure that they will be around for years to come. Our agency only works with surety companies that have superior financial strength and experience, so you will never have to think twice about getting a "junk auto dealer bond" if you choose to work with us. Check out our article to learn how you can cut your dealer bond costs in half.


Eric is an industry expert that specializes in taking complex surety concepts and explaining them in terms that make sense to the general public. He also manages the JW Surety Bonds website and works with various partners to help further educate the public on suretyship using various mediums.

What our clients have to say

Paige Cotcamp
"I would recommend them highly if you are in the market for surety bonds or similar products."
Ulli Bisono
"When I told them how urgent my request was, they pulled out all the stops and got it done in record time - amazing!"
Eric McMullen
"JW Surety Bonds was able to get me what I needed and gave me the best price of all the bond companies I received quotes from."
Hilda Morfi
"As a small business owner I was looking for a bond company that could issue me a bond at a rate I could afford, and JW Surety Bond by far gave me the best quote."
Stewart Prosser
"Patsy Tinsman seems to always have the answers and goes above and beyond the call of duty to make sure we are taken care of in a timely manner. The personal service she provides makes us think we are her only client..."
Jack Duff
"JW Surety Bonds has continued to meet or exceed my expectations in the past 3 years of business relations."
Jason Webster
"I had a very time sensitive issue that I was needing assistance on. Cori got back to me right away (within minutes) and followed up with me constantly until we had resolved the issue."