The Rhode Island Motor Vehicle Dealer Bond starts at $500 plus shipping costs and fees. Fill out the form to buy your bond instantly!
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Rhode Island Dealers’ License and Regulations Office as part of the licensing requirements for dealerships to conduct business in the state. The License and Regulations Office sets the total bond amount at $50,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Rhode Island auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Rhode Island auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Rhode Island auto dealer bonds provide protection for customers, creditors, and the state government. When a Rhode Island motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the License and Regulations Office) that they will conduct business in compliance with the conditions listed in the provisions of Chapter 1499 Public Laws 1956.
If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
To obtain your auto dealer license in Rhode Island, you must meet the Rhode Island Dealers’ License and Regulations Office licensing requirements by completing the following steps:
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.
