Louisiana Auto Dealer Surety Bond
What is a Louisiana auto dealer surety bond?
The State of Louisiana requires those applying for a motor vehicle dealer license to post a Motor Vehicle Dealer Bond. This includes new car dealers, used car dealers, motor vehicle facilities, and inspection stations.
- New motor vehicle dealers: $20,000 bond
- Used motor vehicle dealers: $50,000 bond
- Specialty motor vehicle dealers: $20,000 bond
- Motor vehicle facilities: $10,000 bond
- Motor vehicle inspection stations: $5,000 bond
An 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 in Louisiana:
How much does a Louisiana auto dealer surety bond 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 Louisiana auto dealer bonds for as low as 0.5% of the bond amount. Apply today!
How to Apply for Your Auto Dealer License in Louisiana
The process depends on what type of license you’ll need in Louisiana. The two most common are used dealer license and new dealer license.
- To apply for a new car dealer license, visit the Louisiana Motor Vehicle Commission.
- Used car dealer applicants should contact the Louisiana Used Motor Vehicle Commission.
- To successfully apply for either license, you must establish a permanent business location, take an educational training seminar, and pass a criminal background check.
- You’ll also need liability insurance and a surety bond.
Pay the required fees and submit your complete application to one of the following:
- New vehicle dealer applicants can email applications to info@lumvc.louisiana.gov.
- Used vehicle dealer applicants can mail their physical applications to the Louisiana Used Motor Vehicle Commission, 3132 Valley Creek Drive, Baton Rouge, LA 70808.
Frequently Asked Questions
How long does it take to get a motor vehicle 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 within 24 hours of application.
Who regulates auto dealer bonds in Louisiana?
The Louisiana Motor Vehicle Commission regulates licensing and bonding for new auto dealers. The Louisiana Used Motor Vehicle Commission regulates used auto dealers in the state.
How do I renew my surety bond?
Your bond and license must be renewed each year by a specific date to remain active. In Louisiana, the deadline is December 31.
If you’re buying your bond from Zip, 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 Louisiana Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
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.