Indiana Auto Dealer Bond

An Indiana Auto Dealer Bond costs as little as $250. While the full amount of the bond needed is $25,000, you only need to pay a small percentage of this amount (generally 1% - 10%).

The percentage that you need to pay is known as surety bond cost, a bond rate, or a bond premium. A surety company may examine business financials, past bonding history, and assets to determine your bond rate. However, the main factor that influences your bond rate is your personal credit score. 

While most factors determining your bond rate are already set, you can control which surety company you choose. Picking the right surety company is an easy way to ensure you're getting the best possible rate. 

• Larger and more established sureties tend to offer the best premiums. At JW Surety Bonds, we are able to offer the lowest rates in the industry due to the large volume of bonds we underwrite. 

Just this week, we had an applicant named Hank looking for an Indiana Auto Dealer Bond quote. He was thrilled when we were able to beat the prices he was quoted from other surety agencies by over $50.

1. Apply For Your Bond

Fill out an online application. It is available 24/7, takes only minutes to complete, and provides a free, no-obligation bond quote. 

Information that you will need on hand includes:

• Bond Name (Indiana Auto Dealer Bond, also known as an Indiana Vehicle Merchandising Bond)
• Bond Amount ($25,000)

• Your Contact Information

Prefer to chat with one of our bond experts? Call us at (888)-592-6631.

2. Get a Quote

A bond quote will be sent to the email you provided. This generally only takes a few minutes after your application is sent, but in some cases may take slightly longer. Please check your Spam folder. 

If you have any questions regarding your quote or the bonding process, don't hesitate to contact us. 

3. Purchase Your Bond

Log in to our website to fill out the indemnity agreement and pay your bond invoice.

Once your payment is processed, a copy of the completed surety bond form will be emailed to you. Please check this over to ensure all the information is correct. The original bond will be sent through mail.

A $25,000 Indiana Auto Dealer Bond is a main requirement to get an Indiana Auto Dealer License. This license is needed for any individual in the state of Indiana who sells, offers to sell, or advertises for sale at least:

• Twelve (12) new or used motor vehicles (including semi trailers, trailers, off-road vehicles, snowmobiles, mini-trucks, and recreational vehicles) in a 12-month period.

Why do auto dealers need to be bonded? An Indiana auto dealer bond protects the state and the dealer's customers from fraudulent or misleading business practices. Should a claim be made against this bond, compensation is paid to the party that experiences losses due to the auto dealer's malpractice. 

Every Indiana Auto Dealer Bond is a contract between three parties:

1. Principal - the auto dealer that needs to get bonded. They are agreeing to conduct business ethically and lawfully. 
2. Obligee - the entity requiring the dealer to get bonded (Indiana Secretary of State).
3. Surety - the company that issues the bond (ex. JW Surety Bonds). They are agreeing to pay for any bond claims initially. However, the principal is then required to pay them back in full.

Each Indiana Auto Dealer Bond is issued for a one-year term. Therefore, it must be renewed annually for the auto dealer to remain compliant with state laws. 

Generally, both the state and the surety that issued the bond will send out renewal at least 30 days before expiry. However, it is your responsibility to submit your renewal before your bond expires. If you do not renew your bond before it ends, your dealer license will be suspended during any lapse in bond coverage.

If you have a claim made against your Indiana surety bond, then an investigation is triggered.

This investigation is looking to see if the claimant's statement is valid. This is essential to:

• Ensure that the bond holder isn't paying for false bond claims.
• Determine if the claim falls under the bond's coverage.

As part of this process, you may be asked to provide documents and information for your defense. If the bond claim is deemed valid, the surety that issued your bond will initially pay. You must then work out a repayment schedule with them.

Note:  For Indiana construction bonds, you may also hear a bond claim referred to as a "little miller act claim."

You will need the following information, assets, and documents to get an Indiana Auto Dealer License, 

• Dealer License Type – There are separate licenses for new car dealers and used car dealers. 
• Dealer Training Certificate – Required for all used car dealers not previously licensed. This course is by the Indiana Independent Automobile Dealers Association, and it is available online.
• Business Location – This permanent location must be zoned for commercial use, at least 1300 sq. feet, have permanent signage, have an office, and more.
• Retail Merchant Certificate – Issued by the Indiana Department of Revenue (DOR). 
• Business Registration – Have your business registered with the Indiana Secretary of State. 
• Insurance – Commercial General Liability Insurance and Automobile Liability.
• Surety Bond - $25,000 Indiana Auto Dealer Bond. 
• Background Check – Includes fingerprinting.