Connecticut Auto Dealer Bond

Connecticut Auto Dealer Bond

The Connecticut Department of Motor Vehicles requires a $60,000 Auto Dealer Bond for car dealers in the state. Motor vehicle repairers, leasing and rental companies, and automobile club associations also need a surety bond to operate.

No matter the requirement, your bond will be ready in minutes.

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Jet's direct distribution model eliminates middlemen brokers, delivering a quicker process and pricing options that work for everyone.

How Much Does a Connecticut Motor Vehicle Bond Cost?

Looking for the $60,000 Motor Vehicle Dealer Bond? That starts at $27 a month or $270 for one year. Additional bond types and their corresponding starting rates can be found in the table below.

The price you are quoted is based on the bond type, the bond limit, your personal credit, and years of experience.

Bond TypeBond LimitMonthly1 Year
Motor Vehicle Dealer$60,000$27$270
Motor Vehicle General Repairer$25,000$25$250
Motor Vehicle Limited Repairer$10,000$10$100
Leasing and Rental Company$15,000$11$113
Automobile Club Association$10,000$10$100
Connecticut Vehicle Business Bond Prices

The soft credit check is standard in the surety industry for Auto Dealer Bonds. It doesn’t impact your score, but it lets the surety company peek at your credit standing and offer an appropriate rate base on that. Newly licensed dealers, repairers, leasing companies, and auto club associations carry more risk, just like with any type of new business. Having a successful track record along with great credit qualifies you for the lowest rates.

The bond limits are current as of July 1, 2022. These are the changes made effective on that date:

Connecticut Motor Vehicle Business Classifications

Motor Vehicle Dealer - those selling new vehicles and/or used vehicles.

General Repairer - offers all repair services, including assembling, disassembling, repairing, adjusting, or overhauling a vehicle.

Limited Repairer - offers minor repair services, including repairing/replacing cooling, electrical, exhaust, and fuel systems, doing brake inspections, adjustments, and repairs, completing wheel alignments, and repairing/replacing shocks. 

Leasing Company - those offering vehicles for rent or lease.

Automobile Club Association - anyone offering membership to the public to perform services that protect vehicle owners/drivers (not including insurance) for a stipulated fee.

Why Are Surety Bonds Required for Connecticut Motor Vehicle Businesses?

The Connecticut Department of Motor Vehicle is responsible for the enforcement of legislation upon auto dealers, repairers, leasing and rental companies, and auto club associations, among others. One of their mission statements is “to promote and advance public safety, security and service”. Along with a thorough licensing process, the surety bond is a way to ensure the citizens of Connecticut are protected from licensee fraud or negligence.

Jet Insurance Company is the provider of the bond, guaranteeing compensation to those who file valid claims. Surety bonds are unlike insurance, only paying restitution when the situation involved an intentional or irresponsible act. Because of this, licensees are liable to pay Jet back. Just so you know, claims can be avoided—it’s important to follow rules and regulations and, should a dispute arise, address the issue before it reaches the point of a bond claim, license revocation, or fines.

To read license-specific legislation, refer to Connecticut General Statutes, Chapter 246.

Getting Your Surety Bond With Jet

Click the quote button to get your Connecticut Auto Dealer Bond:

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The application gathers information that’s needed to get you a quote, fill out the bond, and provides us with contact information. After this, all you need to do is select the payment term, input your credit card information, and boom—your bond form and receipt are ready for download. 

Jet will send you the original bond form via mail, so you can sign it and send it to the Department of Motor Vehicles:

DMV - Dealers & Repairers Unit
60 State St, Room 102A
Wethersfield, CT 06161

Read More About Dealer Bond Claims and Bond Handling With Jet

How to Renew My Bond

See the in and outs surrounding renewing with Jet—it’s quick.

How to Cancel My Bond

Looking to cancel? This article has all the details you need.

Bond Claim Process

Read more about claim causes and the claim process for dealers.

Connecticut Motor Vehicle Surety Bond Form Example

Connecticut Auto Dealer Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: