Why do I need a Florida Salvage Dealer Surety Bond, and what is required to obtain one?
Anyone engaged in the business of acquiring salvaged or wrecked motor vehicles for the purpose of reselling them or their parts is required to be licensed in the state of Florida.
Previously, salvage dealers were able to operate under their existing Independent Vehicle Dealer Surety Bonds in the state of Florida. However, effective for the licensing period from May 1, 2019 to April 30, 2020, the Department of Highway Safety and Motor Vehicles will require Salvage Dealers to have a separate surety bond in the amount of $25,000 for both your Salvage Dealer’s license and Independent motor vehicle dealer’s license.
What are the terms of the bond?
Florida Salvage Dealer Surety Bonds ensure the principal (salvage dealer) complies with all provisions of Chapter 319 and 320 of the Florida Statutes, and provides protection to anyone who suffers a loss as a result of a violation. If financial damages occur, 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. The aggregate liability of the surety shall not, in any one year, exceed the penal sum of the bond.
The bond term runs concurrently with the principal’s license and is renewed on April 30th with a continuation certificate sent to the state. The surety may cancel the bond at any time by giving 30 days written notice, mailed to the state by registered mail.
How much will my Florida Salvage Dealer Surety Bond cost?
Pacific Surety offers a wide range of approvals, regardless of credit, for Florida Salvage Dealer Surety Bonds. 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! Rates as low as .75%, subject to underwriting. This 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.