Effective July 1, 2022, the Connecticut Department of Motor Vehicles (DMV) requires the following businesses to increase their current license bonds.
- Vehicle repair shops
- Motor vehicle dealers (new and used)
- Leasing and rental entities
A license bond is required of applicants in various industries to meet state requirements to obtain a business license. In this case, vehicle repairers, dealers, and rental and leasing companies must post a bond to start a company in Connecticut. If you already have your bond, your premium will increase when the bill takes effect.
Bond Increases for Connecticut Vehicle Dealers, Repairers, and Rental Companies
Public Act 22-44, “An Act Concerning Recommendations by the Department of Motor Vehicles,” is a bill that increases surety bond requirements for those with dealer or repairer licenses. The bill also strengthens licensing requirements for driving schools and instructors. The Act was passed in the 2022 legislative session.
Bond Increases for Dealer & Repairer Applicants (Effective July 1)
|Previous Bond Amount
|Current Bond Amount
|New or Used Car Dealer
|Leasing or Rental Company
If this legislation applies to you, you can expect new quotes for the bonds listed above. Your annual premium will increase. Feel free to give us a call at (888) 435-4191 if you have any questions or need to apply for a new bond.
Other Updates Concerning Connecticut Auto Dealers & Repairers
Another update in the bill that impacts repairers and dealers is how the state handles background checks. Moving forward, applicants must provide fingerprint data.
Defining Auto Dealer and Repairer Bonds
Motor Vehicle Repairer Bond
Motor vehicle repairer bonds are required in the state of Connecticut. They ensure vehicle repairers follow the law and handle customer transactions and business fairly and ethically. If this bond applies to you, file a $25,000 bond with the Connecticut DMV to obtain or renew your business license.
Motor Vehicle Dealer Bond
Applicants hoping to obtain a state motor vehicle dealer license must first file an auto dealer bond. This bond guarantees compliance with the law and industry regulations. It also protects customers from unethical business practices.
If an auto dealer breaks the law or mishandles a customer’s money, the customer can file a claim for compensation. The dealership is responsible for covering the costs involved in settling the claim.
If you’re a licensed or prospective dealer in Connecticut, you must post a $60,000 motor vehicle dealer bond with the DMV.
Motor Vehicle Leasing or Rental Company Bond
A motor vehicle rental company bond is required in a few states to ensure car rental and leasing businesses follow state and industry laws and regulations. If a company violates the surety bond contract and a customer loses money, the company will be responsible for the damages.
File a $15,000 surety bond with the Connecticut DMV to obtain your license as a rental or leasing company – or to remain compliant with the state of Connecticut as a licensed company.
Get the License Bond You Need Today
If you need any of the bonds mentioned in this article or have questions about your requirements, call us at 888.435.4191 or email email@example.com. We can help you determine which conditions apply to you and walk you through the application process.