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Indiana Motor Vehicle Dealer, Indiana Auto Dealer Bond:

Did you know that the 391 licensed new car dealers in Indiana collectively sell over $14 billion in vehicles annually, and that doesn't even account for all the vehicles sold on used car lots? The automotive industry is active and important throughout Indiana, which is why the state regulates it carefully.

The Indiana Motor Vehicle Dealer bond is a License Surety Bond that serves to protect Indiana's citizens by providing a path for recourse in situations where an Auto Dealer does not adhere to the laws, rules, and regulations as set in Indiana state legal statutes. An Indiana Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle registration process.

In Indiana, the required Motor Vehicle Dealer bond amount is as follows:

  • Indiana, Motor Vehicle Dealer bond requirement - $25,000 Surety Bond

You should always check with the Indiana Secretary of State Auto Dealer Services Division, or requesting agency, for the most current required Indiana Motor Vehicle Dealer bond amount as well as the required bond forms.

Viking Bond Service, Inc. writes Indiana Motor Vehicle Dealer bonds. We can assist both clients with good credit and clients with bad credit. Typically, the worse the credit, the higher the surety bond premium will be. In either case, we always work to get the best quote for you. Viking Bond Service has partnered with markets that welcome Indiana Motor Vehicle Dealer bond applications and provide competitive quotes for them.

(See Also: Cost Expectations for Auto Dealer Bonds)

How to Get an Indiana Auto Dealer Bond

Before you apply for a bond you may want to learn the basics. Surety bonds are a little different than insurance or loan agreements, which involve two parties. Instead, there are three parties involved:

  • Obligee – Whatever party required the bond. The Indiana Secretary of State Auto Dealer Services Division on behalf of the Indiana public is the obligee.
  • Principal – Whatever party obtains the required surety bond for the auto dealer license. You and any business partners you have are the principal.
  • Surety – Whatever party issues the bond. The surety is the party that provides the guarantee of the principal's adherence to the state laws and regulations covered by the Indiana auto dealer surety bond.

Once you understand the bond requirements set by the obligee, you need to find a surety company that issues bonds that are compliant with Indiana's state laws. Applying for a bond involves supplying some information about your personal and business finances, along with information from any of your business partners. Underwriters for the surety will then analyze the information, calculate your credit risk, and quote you a premium. Once you pay the premium and submit proof that you have the bond to the obligee, you have fulfilled the bond requirement for as long as it's active – typically one year.

How Does an Indiana Auto Dealer Surety Bond Work?

Consumers can file a claim against an auto dealer if the dealer breaks state laws — e.g. by selling a lemon or failing to provide a title. The surety company will then investigate the claim. If it has merit, the surety company will pay the consumer the amount of the claim as long as it does not exceed the bond total. The auto dealer is then responsible for paying the surety company back. Most auto dealers follow all laws and work hard to keep customers happy, but not all do. Surety bonds exist to ensure that consumers get compensated and dealers are held accountable for unlawful behavior.

How Much Does an Indiana Motor Vehicle Dealer Bond Cost?

Even though you're required to obtain a bond worth $25,000, the amount you pay in premiums is a small portion of that, typically 1-3%. When you submit your bond application to a company like Viking Bond Service, underwriters evaluate your credit risk. Basically, they are trying to evaluate how likely you are to pay the surety company back for any claims it settles. If your credit is good, your risk is considered low, so your premiums will be lower as well. The opposite is true if you have bad credit, premiums for applicants with challenged credit are usually higher. The surety bond will be issued once you pay the initial premium. Most bonds expire after a year unless you repay the premium to keep it active. Be sure to budget for your Indiana Motor Vehicle Surety Bond as an annual business expense.

Starting the Process for an Indiana Motor Vehicle Bond

Viking Bond Service has become an industry leader by making motor vehicle bonds accessible to all. Our surety bond application is quick to complete, and you will get a quote back in less than 2 business days. Having bad credit is not an issue, either. Our team is committed to getting as many applicants approved as possible at the best rates available. Rely on Viking Bond Service to make the entire process painless.

Request a Motor Vehicle Dealer Bond Quote:

Contact us by calling 1-(888) 2-SURETY (1-888 278-7389) or by submitting an Online Application. You can also choose to complete the contact form on the page and you will be shortly contacted by one of our agents.

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