What is a motor vehicle rental company bond?
A motor vehicle rental company bond ensures that companies follow state laws and industry regulations while conducting business. If a car rental company violates the law or acts unethically, and a customer loses money because of it, the company will be held responsible for the damages.
Rental Company Bond Requirements
Surety bond requirements for rental companies vary by state. Currently, only a few states require this bond:
- Vermont ($1,000–$400,000)
- Missouri ($100,000)
- Connecticut ($15,000)
Get Your Vehicle Rental Company Bond:
- A motor vehicle rental company bond ensures that companies follow state laws and industry regulations while conducting business.
- If someone believes you have violated the terms of the surety bond and cost them money, they can file a claim against your bond.
- Currently, only a few states require this bond, including Vermont, Missouri, and Connecticut.
How do rental company surety bonds work?
These bonds are three-party agreements involving a surety company, an obligee, and a principal.
- Obligee: The state that requires the surety bond
- Principal: The motor vehicle rental company that must post the bond
- Surety: The financial entity that underwrites and issues the bond
If someone believes that you violated the terms of the surety bond and cost them money, they can file a claim against your bond. Your surety will investigate the claim to determine if it’s legitimate. If not, no further action should be taken. If it has merit, the surety may cover you by paying the harmed party the amount owed – up to the total bond amount. You must then repay the surety in full plus applicable interest and fees.
How much does a motor vehicle rental company bond cost?
To obtain your surety bond, you will pay a small percentage of the bond amount required. If you have excellent credit, you could pay as low as 1%. For example, if you live in Missouri and need a $100,000 bond, you might pay $1,000 per year.
Get a Vehicle Rental Company Bond in Your State
ZipBonds is the fastest and most secure way to get the license and permit bond you need. We take out the pain of long, complicated applications. Most of our bonds are approved and processed immediately. Get your vehicle rental company bond by applying below – or call us directly, and we’d be glad to walk you through the process.
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.