COVID-19 Update: We are reducing costs for qualified applicants, and offering same day bonding.
Please apply online, or call our team for assistance. Learn more
Contact Our Experts

Connecticut Auto Dealer Bond

Real-Time Surety Bond Quotes
Free quotes using soft credit pulls.
#1 Bond Writer with the Lowest Rates
Our high volume allows us to negotiate excellent rates.
100% Money Back Guarantee
Your bond will be accepted, or your money back.
Get Bonded Online in Three Steps
  • 1. Real-Time Quote
  • 2. Buy Securely Online
  • 3. Get Bonded in Minutes

Create a Sub-Broker Account

Create a free account and offer bonds to your clients instantly

What Is a Connecticut Auto Dealer Bond?

Motor vehicle dealers are one of many professionals operating in the state of Connecticut that must follow specific rules when obtaining a business license. Any dealership or individual involved in the sale or exchange of vehicles must hold a valid license and have a surety bond in place.

The Connecticut auto dealer bond acts as a form of protection for customers of licensed auto dealers. If an auto dealer fails to comply with state laws when conducting transactions with customers, then a claim can be made against a Connecticut auto dealer bond.

A successful claim results in compensation paid to the individual or party involved in the transaction to cover financial losses incurred. Connecticut auto dealer bonds ensure the buying public has some safety net when conducting business with licensed auto dealers.

How Does a Connecticut Auto Dealer Bond Work?

As with other surety bonds, a Connecticut auto dealer bond represents a contract between various parties.

The Obligee

The state's licensing authority requiring the bond be in place is known as the obligee of the bond.

The Principal

The principal of the bond is the auto dealer who must obtain the bond to be licensed in the state.

The Surety

The surety company provides the bond to the principal. The surety then pays any successful claims made against the bond, and the principal eventually pays back the claim to the surety.

Connecticut Auto Dealer Bond Obligee Details

Connecticut auto dealer bonds have the following obligee:

State of Connecticut Department of Motor Vehicles

Dealers and Repairers Section

60 State Street

Wethersfield, Connecticut 06161

Phone: 800-842-8222

Who Needs a Connecticut Auto Dealer Bond?

In Connecticut, auto dealers may fall into different categories, depending on the types of vehicles they sell or exchange. Both new and used auto dealers are required to have a Connecticut auto dealer bond in place. Auto repairers and rental or leasing dealers are also required to have a valid bond to conduct business.

How Do You Get a Connecticut Auto Dealer Bond?

Licensed auto dealers in Connecticut may start the process of obtaining an auto dealer bond by submitting a brief online application. The surety company reviews the details of the application, including the bond type, amount, and the financial history of the auto dealer to determine the bond price.

How Much Does a Connecticut Auto Dealer Bond Cost?

The price of a Connecticut auto dealer bond is determined by several different factors, including the amount of the bond that must be secured.

For repairers, a bond of $5,000 is required, while rental or leasing companies must have a $10,000 bond. New and used auto dealers in Connecticut must have a $50,000 bond. Auto dealers and repairers won’t have to pay the entire amount of the bond upfront.

The surety company providing a Connecticut auto dealer bond calculates a bond premium. The bond premium ranges from 1 to 10 percent of the bond total, and this is the amount paid by the auto dealer.

Can I Get a Connecticut Auto Dealer Bond with Bad Credit?

Auto dealers that have a solid financial history and a healthy credit background pay a lower bond premium than auto dealers with a limited or negative financial history. It is possible to obtain an auto dealer bond with bad credit, but the bond premium you pay will be higher because the surety company will consider you higher risk.

How Do I Renew My Connecticut Auto Dealer Bond?

Connecticut auto dealer bonds must be renewed at the same time your auto dealer license renews, which is every two years. You will receive a renewal notice before your bond expires, and it is important to send in your renewal with ample time to spare, so that you don’t risk your bond becoming invalid.

Frequent Questions

What does an auto dealer bond cost?

Costs are a percentage of the auto dealer bond amount that's required of you, which is based on your personal credit. Use our bond pricing tool to get a quick ballpark estimate.

Can I get a bond with bad credit?

Yes. You can get approved for a bond regardless of your credit situation. However, the price will increase. You can apply to get an instant approval. As the largest writer of surety bonds in the U.S., we have access to high risk markets that many other agencies do not.

How long does the application take?

It only takes minutes, as we can approve you for your bond instantly online. You can get a no obligation quote on our website at any time.

Can I get auto dealer bond insurance to protect myself?

No. An auto dealer bond does not protect you, it protects the public. However, you can protect yourself or your customers by getting fidelity bonds.

Get Your Surety Bonds from the Best Bonding Companies
We work with the top A-rated, T-listed surety bond companies in the nation

Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

The Nation’s #1 Volume Surety Bond Service
Our company writes $4,000,000,000+ in bonds each year!
  • #1 Bond Writer
    We are the nation's largest volume bond producer.
  • Easy Process
    Fastest online surety bond application process; we approve bonds instantly.
  • Lowest Rates
    Our high volume allows us to negotiate lower rates on your behalf.
  • Claim Specialists
    Your JW surety bond agent will be your claims advocate when you need them most.

Don't wait days to get bonded. Get your surety bond instantly!

Get Your Free Bond Quote
About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.