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The Alabama Department of Revenue Motor Vehicle Division has recently updated bond requirements for all motor vehicle professionals in the state. Our surety experts have put together this guide to explain the new bond requirements you’ll need to fulfill to remain in compliance with the state’s licensing laws.
Who is affected?
Effective August 1, 2014, surety bond requirements for the following motor vehicle professionals will change:
- New Motor Vehicle Dealers
- Used Motor Vehicle Dealers
- Designated Agents – Motor Vehicles
- Motor Vehicle Rebuilders
- Motor Vehicle Reconditioners
- Motor Vehicle Wholesalers
*Automotive dismantlers and parts recyclers are not affected by this legislation.
What are the changes?
Under the new requirement, motor vehicle and designated agent bonds will now be issued on the same bond form. The required amount of coverage for both positions will be $25,000. Designated agents who are dealers must obtain the new combination bond form for the $25,000 amount. Designated agents who are not dealers can use their existing surety bond.
All rebuilder, reconditioner, wholesaler, and new and used motor vehicle dealer bonds must be rewritten on the new bond form. The required bond amount has been increased from $10,000 to $25,000.
When do these changes go into effect?
The new requirement goes into effect on August 1, 2014, and licensees have 30 days to update their surety bonds to reflect the changes.
How much will my bond cost?
Dealer bond premiums are calculated based on applicants’ financial credentials. Individuals seeking dealer bonds must submit an application for underwriting consideration and can expect a free, no-obligation quote within one business day. SuretyBonds.com can instantly issue the $10,000 non-dealer designated agent bond for just $100 without a credit check.
How do I update my bond?
SuretyBonds.com can help ensure you remain in compliance with the state’s new bond requirements. Give us a call at 1 (800) 308-4358 or fill out an online bond request, and our team of experts will help you get the bond you need quickly for the lowest available rate.