Most states don't require a motor vehicle rental company to acquire a bond before allowing them to conduct business - but a few do. If the surety bond requirement applies to you, read on to learn everything important.
This type of commercial bond is a way to ensure that a motor vehicle rental company conducts business according to all state laws and standards of conduct. If a business does not follow those requirements, the motor vehicle rental company bond holds them financially accountable.
If the misconduct of a motor vehicle rental company hurts a customer in some way, that person may file a claim against the bond seeking financial compensation equal to the amount of damages caused. As long as the rental company did in fact engage in unlawful behavior, the surety company quickly pays the claim in full. After settling the claim, the surety company will use whatever legal means necessary to collect the amount of the claim (plus interest and fees) from the bonded party (the rental company). The final financial responsibility always falls to the rental car company owner.
At the time of writing, only Missouri, Connecticut, and Vermont require upstart businesses to get a motor vehicle rental company surety bond. That number could grow however, and rental companies in other states may need other types of surety bonds to conduct business legally. If you're unsure whether you need a surety bond, contact Viking Bond Service for one-on-one assistance.
Unlike an insurance agreement, which involves the policy holder and the insurance company, this and all other kinds of surety bond agreements involve an additional party. Here's how it works:
That depends on the state and the applicant. Each state dictates how large the bond must be - eg. the total amount the surety company agrees to pay out in claims. The cost for that bond is a small percentage of the total, but the exact amount depends on the applicant's credit score, financial history, and business strength. Viking Bond Service is committed to getting everyone a fair rate, and we have a special program to help applicant's with credit issues.
The surety will only settle a claim after investigating the details. The goal is to verify that everything outlined in the claim is true so that surety companies don't pay false claims or penalize rental companies that have done nothing wrong. If the surety settles a claim, the principal must pay the surety back an equal amount including interest and fees.
To apply, submit a standard bond application. You will need to enter basic information about your business, background, and financial history. You must also submit to a credit check. Be aware that the surety may ask for additional documentation to complete your application. Get a quote back within 24 hours by applying with Viking Bond Service.
Since so few states require a motor vehicle rental company bond, few surety companies offer it. But Viking Bond Service does - along with everything you need to make the bonding process fast, easy, and affordable. If you have more questions, contact us at 1-888-278-7389 or through the contact form on this page. If you're ready to get a motor vehicle rental company surety bond ASAP, complete this online application at your own convenience.
Viking can quote your Auto Dealer Bond within 24 hours. We provide great rates and accept good and bad credit.
Viking can get you through the Freight Broker bonding process fast. From application to quote to bond in place, we keep it simple.
Learn about the bonding process. Viking will guide you step by step from application to bond in hand.
Viking provides Utility Deposit Bonds nationwide. We provide fast quotes and knowledgeable friendly agents. Learn more here.