Why do I need a Florida Motor Vehicle Dealer Surety Bond, and what is required?
Part of the application process for new Florida Motor Vehicle Dealers includes posting a $25,000 surety bond with the Department of Highway Safety and Motor Vehicles. This is a requirement for both Independent Dealers and Franchise Dealers. Under provision of Chapter 319 or 320, Florida Statues, these surety bonds guarantee that the dealer will follow all state guidelines and laws and offer protection to the public.
In addition to the surety bond, what else does the department of highway safety and motor vehicles require to approve my license?
- Completion Certificate for all pre-licensing dealer training courses
- Copy of lease or proof of ownership for location
- Remit payment for $200 fee per main location
- Provide FEIN (Federal Employer Identification Number) and Sales Tax Number
- Proof of registration with DHSMV of the business entity and fictitious name with the Florida Division of Corporation
- Proof of electronic fingerprinting to the DHSMV
- Appropriate insurance coverage (outlined below)
What insurance coverage is required to obtain my Florida Motor Vehicle Dealer license?
Independent Dealers need a garage liability insurance certificate which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection.
A general liability insurance policy combined with a business automobile policy, which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury. All garage/general liability insurance certificates must include the number of dealer license plates authorized for the dealership by the insurance company.
Franchise dealers must submit a garage liability insurance certificate which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection and the authorized number of dealer license plates.
When do I need to renew my Florida Motor Vehicle Dealer Surety Bond?
Independent Dealer bonds have a required expiration date of April 30th, while Franchise Dealers expire on December 31st. Licenses can be renewed annually or biennial. Original bonds and renewal documents must be submitted to your local DMV office.
How much will my Florida Motor Vehicle Dealer Surety Bond cost?
Pacific Surety offers a wide-range of approvals regardless of credit for Florida Motor Vehicle Dealers. Our strong surety relationships help get your price down as low as possible every year. No need to shop your rate, we do that for you. Rates as low as .75%, subject to underwriting with premium discounts available for members of the Florida Automobile Dealers Association. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing.
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