Alaska Auto Dealer Bond
What is an Alaska auto dealer bond?
Alaska Statute 08.66.060 requires all motor vehicle dealers to post a $100,000 surety bond unless they sell only motorcycles (in which cases a $25,000 bond is required).
An Alaska auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.
Get Your Auto Dealer Bond:
What does a motor vehicle bond in Alaska cost?
Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
ZipBonds can offer Alaska auto dealer bonds for as low as:
- $250 for a $25,000 motorcycle dealer bond
- $1,000 for a $100,000 motor vehicle dealer bond
Why is this bond required?
According to Alaska Statute 08.66.060, vehicle dealers must follow the state’s laws and avoid committing fraud or making fraudulent representations while operating a business. The bond protects customers financially in case of fraud or other law violations that can cost them money.
How to Get Your Alaska Auto Dealer License
Follow this process (click here for detailed instructions) to apply for your motor vehicle dealer license online:
- Complete the application form.
- Obtain your surety bond.
- Include a passport-type photo of every owner, member, corporate officer, or partner.
- Include a photo of your dealership location.
- Attach your business license.
- Provide proof of insurance (workers’ compensation and liability).
- Complete a dealer plate application (if applicable).
- Return all documents to the Dealer/Fleet Department and pay a $50 fee.
The address (to submit your application in person or by mail) is:
- Alaska Division of Motor Vehicles
- ATTN: Dealer/Fleet
- 3901 Old Seward Hwy, Ste 101
- Anchorage, AK 99503
Frequently Asked Questions
How long does it take to get an Alaska auto dealer bond?
Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.
Who regulates auto dealer bonds in Alaska?
The Alaska Department of Administration Division of Motor Vehicles regulates the industry (licensing and bonding).
How do I renew my auto dealer bond?
Once you’ve purchased your motor vehicle dealer bond, remember to renew it before its expiration date each year. If you’re buying your bond from us, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.
What happens if someone files a claim on my bond?
A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.
Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.
How can I avoid claims on my auto dealer bond?
Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.
How to Get Your Alaska Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting auto dealer bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly. Many of our bonds can be processed and issued immediately online.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.