The Utah Motor Vehicle Enforcement Division (UMVED) requires motor vehicle dealers, special equipment dealers, crushers, and autobody repairers within the state to secure a surety bond as part of the licensing process.
The Utah Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop Bond (which we will continue to refer to as the Utah Motor Vehicle Dealer Bond) is similar to other surety bonds in that it is an agreement among the obligee, the principal, and a surety company. The surety bond ensures that the licensed principal or business will fulfill their contractual obligations, and abide by all state licensing laws and regulations. The obligee—in this case, the UMVED—receives assurance from the surety that the principal (the licensed business or individual) will fulfill their contractual obligations and provide compensation to any affected parties up to the bond amount if a claim is valid.
In the event that the principal does not abide by state laws and licensing regulations, and an injured party files a claim against the principal’s bond, the surety will provide compensation to the affected individuals up to the bond amount, following an investigation into the claim’s validity. Valid claims may relate to the sale of stolen vehicles, deception, fraud, and negligence. Upon payment of valid claims, it is the principal's responsibility to reimburse the surety for damages paid to affected parties, plus additional fees and expenses incurred by the surety while investigating the claim.
New or used motor vehicle dealers, special equipment dealers, crushers, and autobody repairers operating body shops are required to obtain a Utah Motor Vehicle Dealer Bond. In particular, affected businesses include:
This bond ensures compliance with all requirements and provisions of the Utah Motor Vehicle Business Regulation Act.
Note that the Utah Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop Bond expires one year from the date of issuance and must be renewed before the license expires.
The bond amount for the Utah Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop Bond is usually $10,000, $20,000, or $75,000, depending on the type of dealership. Here is a quick list of prices by dealer type (as of 2023):
Although bond amounts vary, only a small percentage of the bond amount called a premium, is required to obtain the bond. The premium rate is determined by several factors, such as the business owner’s credit score, experience in the industry, and the business's financial strength. Please note that this soft credit inquiry will not harm your credit score.
If you have excellent credit, your rates could be as low as 1-3% of the bond amount. Fortunately, we work with upwards of 35 surety companies to find you the best rates available, including those with nonstandard credit.
The obligee, or the authority that requires the motor vehicle dealer bond, is the Utah Motor Vehicle Enforcement Division. Here is their contact information:
Utah State Tax Commission
Motor Vehicle Enforcement Division
210 North 1950 West
Salt Lake City, Utah 84134
Phone: 801-297-2600
Email: mved@utah.gov
With EZ Surety Bonds, your bond application is quick, easy, and free! Simply apply for your Utah Motor Vehicle Dealer, Special Equipment Dealer, Crusher, or Body Shop Bond via the short form on our website, and one of our friendly surety experts will get back to you regarding your free quote within 24 hours. Following payment and receipt of your bond, you may then file it with your obligee, the Utah Motor Vehicle Enforcement Division.
Need surety bonding assistance? You can reach our friendly surety experts at bonds@southcoastsurety.com or by calling 1-800-361-1720.
To obtain your Utah Auto Dealer License, you must complete the following steps:
Note that regardless of when the license was issued, the dealer license expires on June 30th of every year. Therefore, even if you obtain the license on March 1, 2024, it will expire on June 30, 2024.
The Utah Motor Vehicle Dealer Bond, Special Equipment Dealer Bond, and Crusher or Body Shop Bond require bond amounts ranging from $10,000 to $75,000. However, what you’ll pay is the premium rate, which is determined by several factors, such as your credit score, industry experience, and financial standing.
Regardless of the applicant's credit rating, we offer competitive quotes. Apply on our website today and one of our surety experts will contact you regarding your free quote within 24 hours.
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal). However, every obligee has their own unique filing requirements. Always confirm the bond filing requirements with your obligee before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
