Need Help getting garage insurance or a bond?
NOTE: Where possible, I listed each states Independent Auto Dealers Assocation. They can usually help with bonding and liscensing concerns. Alabama A $5,000 Surety Bond or a net worth statement for $25,000 or more is required. Dismantlers must present a bond showing a net worth of no less than $100,000. http://www.alabamaiada.com/ Alaska $50,000 bond required; $3,000 for motorcycle dealers. Arizona Surety bond of not more than $50,000 for each type of license for each county where dealer has established business; required for each location. Arizona IADA 5517 N. Black Canyon Hwy. Phoenix, AZ 85015 602-246-1498 Arkansas Franchise dealers must post a $25,000 bond with the Arkansas Motor Vehicle Commission to obtain a license. Used car dealers must post $25,000 bond with the State Police. http://www.arkiada.org/ California $50,000 bond required. http://www.iadac.org Colorado A $30,000 bond must be posted upon application for license. http://www.ciada.org/ciada.html Connecticut Required; $5,000 for repairers and limited repairers; $20,000 for new and used vehicle dealers. Submitted in the name of the licensee prior to license issuance. Delaware There are no bond requirements for dealers. http://www.miada-diada.com/ District of Columbia A $10,000 bond is required; filed with the Department of Consumer Regulatory Affairs. Florida All motor vehicle and mobile home dealers are required to file a $25,000 Surety Bond. An irrevocable letter of credit may be substituted for a motor vehicle dealer’s bond. Recreational vehicle dealers require a $10,000 bond. For more than 4 additional lots, MH dealers require $50,000 bond, and RV dealers require $20,000 bond. http://www.fiada.com/ Georgia A $20,000 bond is required of all vehicle dealers. http://www.giada.org Hawaii Bond is not required, however, a $50,000 line of credit from a financial institution is required. Greg Le Lesch, Secretary/Treasurer 1001 Ahua Street Honolulu, HI 96819 808-840-8900 Idaho A $10,000 bond is required for motorcycle, ATV and snow machine dealers; $20,000 for all others. Douglas Gaskell, Executive Director Idaho IADA 813 N. Mitchell Boise, ID 83704-8161 208-376-9517 Illinois $20,000 for 36 months. Indiana Bond is not required. Debbie Andersen, Executive Director Indiana IADA PO Box 1393 Crown Point, IN 46308 219-661-0287 Iowa $50,000 Surety Bond must be filed with the Department of Transpiration. Kansas $5,000 to $20,000 is optional. Kansas IADA 529 Humboldt, Suite K Manhattan, KS 66502-6073 785-776-0044 Kentucky $15,000 may be required. Louisiana A $20,000 bond for new vehicle dealers; $10,000 for used vehicle dealers. Louisiana IADA 7440 Exchange Place Baton Rouge, LA 70806-1531 225-922-9910 Maine Required for all dealers except light trailer and light boat trailer dealers. Bond amount is established by the number of vehicles sold by the dealership: Vehicles Sold Bond Limits Vehicles Sold Bond Limits 0-50 $5,000 151-200 $20,000 51-100 $10,000 201 and over $25,000 101-150 $15,000 Maryland Based upon sales volume, surety is required for all dealers. http://www.miada-diada.com/ Massachusetts None required Michigan $10,000 bond required. http://www.miada.org/ Minnesota $50,000 must be filed by all dealers; $5,000 for boat, snowmobile, trailer and motorized bicycle dealers. http://www.northlanddealers.com/ Mississippi A $15,000 Designated Agent’s Surety Bond is required for all licensed dealers. Filed with the application for a dealer’s license. Mississippi IADA PO Box 1081 Ridgeland, MS 39158-1081 601-957-1010 Missouri $25,000 Corporate Surety Bond. Montana Franchised dealers, used car dealers, recreational vehicle dealers, auto auctions, wholesalers and trailer dealers who sell mobile homes, house trailers and commercial trailers exceeding 6,000 lbs. GVW are required to post $25,000 bond. Wholesaler and trailer dealers selling trailers under 6,000 lbs. GVW and motorcycle dealers must post $10,000 bond. Montana IADA PO Box 1264 Miles City, MT 59301 406-232-2207 Nebraska $25,000 bond is required. Nebraska IADA PO Box 29107 Lincoln, NE 68529-0107 402-464-2089 Nevada A $50,000 Surety Bond is required. New Hampshire A $20,000 to $10,000 depreciating bond, or a $1000,000 blanket bond through the New Hampshire Automobile Dealers Association. The two dealer categories are Bonded and Licensed. Bonded dealers are not issued dealer plates. New Jersey No bond is required. New Mexico A $20,000 corporate Surety Bond is required for auto dealers, salvage dealers, manufacturers, mobile home dealers and motorcycle dealers. A $12,500 bond is required for motorcycle dealers; no bond for boat dealers. New Mexico IADA 608 Chama Street, NE Albuquerque, NM 87108 505-232-0809 New York Bond is required NYIADA 120 Washington Avenue Albany, NY 12210 518-462-3333 North Carolina $25,000 indemnity bond http://www.theciada.com North Dakota All motor vehicle dealers are required to maintain a $25,000 Surety Bond with the department. All mobile home trailer and motorcycle dealers must maintain $10,000 surety bond. http://www.northlanddealers.com/ Ohio Not required Automobile Dealers Alliance of Ohio 7870 Olentangy River Blvd., Suite 107 Columbus, OH 43235-1319 614-436-3396 Oklahoma $10,000 bond is required on new car dealers, $25,000 on wholesale dealers, and $30,000 on manufactured home dealers. http://www.e-oiada.com Oregon Effective March 1, 2000, insurance is increased to $20,000 for each year the certificate is valid; effective March 1, 2001, requirement is increased to $25,000 for each year the certificate is valid. http://www.oiada.com/ Pennsylvania A $20,000 bond is required. www.piada.org Rhode Island All dealers must post a $15,000 Surety Bond with the Dealers License Commission. South Carolina A $15,000 surety bond is required. South Dakota Required. Amounts are: $10,000 bond for new and used vehicle dealers; $2,000 for motorcycle dealer; $10,000 for trailer dealers (required only for dealers who sell trailers weighing over 2,000 lbs.); $10,000 for mobile home dealers; $2,000 for snowmobile dealers. http://www.northlanddealers.com/ Tennessee Bond is filed with Motor Vehicle Dealer Commission. 423-653-7692 Texas A $25,000 surety is required for motor vehicle, motorcycle, wholesale, and wholesale auction dealers for the licensed period unless the dealer is a franchised dealer or trailer dealer. http://www.txiada.com/ Utah Required. A $20,000 corporate surety bond for new or used vehicle dealers. A $1,000 corporate surety bond for new or used motorcycle or small trailer (750 lbs. unladen weight or less) dealers. http://www.iadau.org Vermont Bond requirements. New and used car dealers must provide bond based on number of sales and must have real estate value of not less than $5,000 or more than $15,000. Virginia Original licensees are required to furnish $25,000 bond for the first three years in business. Bond required until dealership has three consecutive years without a claim against the bond or fund. http://www.viada.org/ Washington $15,000 for motor vehicle dealers, $30,000 for mobile home/travel trailer dealers ($15,000 for travel trailer only). $5,000 for miscellaneous dealers. http://www.wsiada.com/ West Virginia $2,000 bond is required for all dealers. Renewal licenses require a new Dealer Surety Bond (Form MV-126-DS-P). Wisconsin $5,000 to $100,000 bond may be required, if there is reason to doubt the financial responsibility or compliance of dealership. http://www.northlanddealers.com/ Wyoming A $10,000 Dealer Bond is required at the time of application for a license. |
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