What is a Rhode Island Automobile Dismantler & Parts Recycler Surety Bond?
Auto wrecking and salvage yards in Rhode Island are required to post a $10,000 Automobile Dismantler & Parts Recycler Surety Bond to conduct business in the state. An auto wrecking or salvage yard is defined as any person, firm, corporation or association that destroys, junks, dismantles, processes or stores for later dismantling or destruction motor vehicles and parts.
This Rhode Island Automobile Dismantler & Parts Recycler Surety Bond guarantees that the principal (wrecking or salvage yard) operates their business in accordance with all state rules, laws and regulations governing their business. The surety bond also protects harmed parties from financial loss if the principal fails to comply with the terms of the bond. If a valid claim is filed against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What is required to become a licensed auto wrecking/salvage yard?
- Complete application
- License fee of $750.00 – payable to the Rhode Island General Treasurer (If you have a branch location or own more than one auto wrecking/salvage business, separate application and fee must be filed for each location)
- Proof of zoning
- Tax Payer Affidavit
- Criminal history report for all owners, partners, managers and corporate officers (Include a CHR from your home state as well as from RI if you reside out of state)
- Second hand dealers license obtained from the city/town the business is located in or proof of compliance with Rhode Island General Law 42-14.2-8 (2) & (3) if your city/town does not have a second hand dealer license
- $10,000 Surety Bond
How much will my bond cost?
Pacific Surety is proud to offer a variety of approvals regardless of credit, with rates as low as 1% of the total bond amount annually for well qualified applicants. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
- Rhode Island Department of Business Regulation Auto Wrecking/Salvage Yard Bond
- Rhode Island Department of Business Regulation Auto Wrecking, Salvage Yard & Salvage Processors License Application
- Rhode Island Department of Business Regulation
- Rhode Island Commercial Regulations – Title 230, Chapter 30, Subchapter 05, Part 5
- Rhode Island General Laws – Title 42, Chapter 42-14.2