What are Ohio Motor Vehicle Dealer Surety Bonds?
Used motor vehicle dealers in the state of Ohio are required to post a $25,000 auto dealer surety bond to legally conduct business.
This Ohio Motor Vehicle Dealer Bond is used solely for the purpose of replenishing funds that have been distributed from the Title Defect Rescission (TDR) Fund to compensate retail purchasers of the said dealership. The TDR Fund provides refunds to retail purchasers of motor vehicles who suffer damages from motor vehicle dealers who failed to provide a valid certificate of title in the purchaser’s name within the statutorily required period of time. If a valid claim is filed by the state, the surety company will pay out up to the penal sum of the bond to resolve the claim. The principal is than required to reimburse the surety for all monies paid out.
What are the requirements for Ohio Motor Vehicle Dealer Bonds?
- The bond must include the registered business name of the dealership and must correspond exactly with the business mane on file with the Bureau of Motor Vehicles and the Secretary of State.
- The bond must be posted in favor of the State of Ohio.
- The original bond must be mailed to the Ohio Attorney General’s Office for processing.
- The bond must be retained for the entire duration of the license.
- The bond may be continued by certificate for subsequent periods in support of the dealer license.
- The bond may be canceled at anytime by the surety with thirty (30) day written notice to the registrar of the bureau of motor vehicles.
How much do Ohio Motor Vehicle Dealer Bonds cost?
Pacific Surety offers a wide range of approvals regardless of credit, and our rates start as low as 0.60% with qualifying credit. Our strong surety relationships help get your price down as low as possible each year. No need to shop your rate, we do that for you! 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.