FOR ALL YOUR SURETY BOND NEEDS.
View all of the Alabama Surety Bond products that we offer at Single Source Insurance. This includes those for Birmingham, Mobile, Montgomery, Huntsville, and all others. Find Dealer Bonds required by the AL department of Revenue, Mortgage Bonds, Court Bonds and more. Simply fill out an application with our Alabama bonding company online, and you'll receive a quick turnaround!
Learn more about Alabama auto dealer bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
Alabama dealer bonds guarantee that auto dealers in the state will operate in compliance with the rules and regulations of the Alabama Motor Vehicle Division. They provide protection for the state and for consumers against financial losses incurred as a consequence of a dealer�s conduct. The terms and conditions of the bond establish what constitutes acceptable and unacceptable business practices for auto dealers in Alabama.
In Alabama, anyone applying for or renewing a license as a new or used motor vehicle dealer must first obtain an Alabama auto dealer bond. The bond requirement also applies to wholesale dealers, auto reconditioners and rebuilders, and motorcycle and trailer dealers.
The Alabama Department of Revenue, Motor Vehicle Division, states that any person wanting to sell 5 or more vehicles in a 12-month calendar year must apply for a dealers license.��As of August 1, 2014, this will also include the Designated Agent surety bond.���In order to maintain your dealer license with the State of Alabama you must keep your surety bond in good standing.
Alabama requires a continuous auto dealer bond, which means that a continuation certificate must be submitted at each renewal. Every Alabama dealer license expires on September 30th of each year and must be renewed by October 1. Failure to maintain a continuous bond will result in license revocation.
Any violation of the terms and conditions of the bond can result in a claim being filed against the bond. The surety will determine the validity of the claim before making payment to the claimant. That payment is essentially a courtesy, because ultimately, the dealer must reimburse the surety in full for the amount paid to the claimant.
The Alabama Motor Vehicle Division has established the required amount for all Alabama auto dealer bonds as $50,000 beginning October 1, 2020. The dealer pays only a small percentage of that amount, however, which is known as the premium rate.
The main factor impacting the premium rate you will pay is your credit score, though other factors may also enter into the picture. If you maintain good credit, you can expect to pay anywhere between .7% to 5% of the bond penalty amount. For individuals with lower credit ratings, we can still offer the most competitive premiums with financing sometimes being an option.
After you�purchase your bond with Single Source Insurance, you will need to log into the Alabama Department of Revenue Website. You will then need to locate your new dealer packet for the current year and, save the surety bond form to your computer, and email us the bond form.
If you need assistance, you may also call us at�1-855-689-5106�and we can walk you through it or even log in for you. The only way to issue a new bond with the State of Alabama is through their portal. The bond form must have a specific number on the bottom and also their seal over the entire form.
Give us a call or apply online to see what rate you would pay for an Alabama dealer bond.
