Illinois Auto Dealer Bond
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What does an Illinois auto dealer bond cost?
Illinois auto dealer bond costs start at $410 annually. Your exact premium will be calculated based on the state's required 12/31 bond term expiration date. Your free quote will be provided after a quick application underwriting review.
How do you get an Illinois designated agent bond for vehicle dealers?
You can apply for your Illinois licensed dealer bond online 24/7 through our safe and secure application portal. You must provide the following information for Secretary of State approval.
- dealership name
- dealership address
- license type (used vehicle dealer or new vehicle dealer)
- dealer license number (if available for existing dealerships)
Once your order has been processed, you'll receive a digital copy of your car dealer bond by email. Your official documentation will be delivered based on your preferred shipping method.
How fast can I get a designated agent bond for vehicle dealers?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Illinois auto dealer bonds faster than any other surety provider. The Secretary of State requires these bonds be physically issued and delivered to you. Orders placed by 4 PM CST Monday-Friday are typically shipped same-day. If you're in a rush, choose overnight shipping during checkout.
If you have any questions about Illinois designated agent vehicle dealer bonds or your application, call 1(800)308-4358 to speak with one of our friendly surety experts.
What is an Illinois auto dealer bond?
Illinois Vehicle Code Article 1 requires individuals file a $50,000 surety bond for each physical dealership as part of the state's dealer license application process. The state-required bond form is officially titled the "Designated Agent Bond for Illinois Vehicle Dealers," but it's more commonly known as a "motor vehicle dealer bond" or just "auto dealer bond."
The bond term will match the auto dealer license term, which expires annually on December 31st. The bond form language requires bonded dealers comply with all Secretary of State rules for dealerships, which specifically includes collecting and remitting business according to the Illinois Vehicle Code.
Why do you need an Illinois auto dealer bond?
By filing an auto dealer surety bond, you agree to follow Illinois vehicle code when operating your dealership. If you fail to fulfill the bond's terms as outlined in Illinois code, claims can be filed against your bond. The surety company will pay valid claims up to the full $50,000 bond amount, which you must then reimburse.
Who regulates licensing for auto dealers?
The Illinois Secretary of State Dealer/Remitter Licensing Section enforces auto dealer license requirements for motor vehicle dealers in the state. Call 1(217)782-7817 to request an application packet. Effective January 1, 2018, the state increased the required surety bond amount from $20,000 to $50,000.
Who should get an Illinois auto dealer bond?
Individuals who sell 5 or more vehicles during a calendar year must file a $50,000 Illinois designated agent bond for vehicle dealers and maintain their bond for the first 60 months of business operations.
Illinois auto dealer bonds are required for vehicle dealer licensing. If you need a bond for vehicle registration, a separate Illinois certificate of title bond is required.
How do I update or change my motor vehicle dealer bond form?
If the Illinois Secretary of State Dealer/Remitter Licensing Section requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your motor vehicle dealer bond from SuretyBonds.com, email our customer service team at [email protected] to explain the needed change.
The most common changes requested are the dealership's name or address.
How do I renew my vehicle dealer bond?
Your bond must be renewed annually before it expires on December 31st. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to keep your bond and dealers license active with the state.
How do dealers apply for a motor vehicle dealer license in Illinois?
Learn How To Get An Illinois Auto Dealer License by reviewing our comprehensive guide.
Complete the following steps to apply as an Illinois motor vehicle dealer.
- Establish a permanent business location. If the property is leased, provide a copy of the lease.
- Attend an 8-hour training course covering taxes, consumer protection laws, and licensing requirements.
- Purchase a $50,000 motor vehicle dealer surety bond.
- Get a registration statement of approval from the Illinois Department of Revenue.
- Provide your completed dealer license application along with the $1,0000 license fee required if applying before June 15th or $500 license fee if applying June 16th or later.
All documents must be submitted to the following address.
Illinois Secretary of State
Dealer/Remitter Licensing Section
501 S. Second St. Rm. 069
Springfield, IL 62756-7000
Have Questions?
Call 1 (800) 308-4358 to talk with a Surety Expert today.
