The newly increased surety bond requirement for Alabama motor vehicle dealers announced in 2019 will go into effect October 1, 2020. AB-393 amends many of the existing requirements for licensees, but the bond amount change will likely be the most cumbersome.
How do I increase my Alabama motor vehicle dealer bond to $50,000?
On September 1st, the Alabama Department of Revenue Motor Vehicle Division released instructions for renewing a dealer regulatory license, including obtaining the new $50,000 bond form on their website. Check out the video below for complete details on how to update your bond with the Alabama DOR.
Once this process is completed, dealers should contact their surety bond provider for next steps. Since the bond amount is doubling from $25,000 to $50,000, motor vehicle dealers in the state should expect their annual premium to increase accordingly.
The deadline for existing auto dealers to submit their new $50,000 surety bond form to the Department of Revenue is October 1, 2020, so active dealers must complete this process as soon as possible.
What should SuretyBonds.com customers expect?
If you’re a SuretyBonds.com customer, simply send a PDF scan of your new surety bond form to [email protected] to request your existing bond form be updated. We will follow up with a link to pay the additional premium reflecting the bond increase.
Once we’ve received your new bond form and payment for your $50,000 bond, we will send along a FedEx tracking number to monitor the shipment of your motor vehicle dealer bond. From there you will sign the bond and file it with the Alabama Department of Revenue Motor Vehicle Division.
How do I get a new motor vehicle dealer surety bond in Alabama?
If you need a new surety bond to file with the state, you can apply for an Alabama motor vehicle dealer bond online 24/7 or call 1(800)308-4358 to speak with a surety expert about your bonding needs.
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