Effective January 23, 2023, the required bond amount for the Michigan Uniform Vehicle Dealer Surety Bond will increase to $25,000. The surety bond requirement is mandated by Michigan Compiled Laws 257.248. These bonds are more commonly known as “Michigan auto dealer bonds” or Michigan motor vehicle dealer bonds.”
As of December 28th, 2022, the Michigan Department of State confirmed they have not yet distributed this information to motor vehicle dealers currently licensed in the state. The new bond form is not yet available.
How do I increase my Michigan auto dealer bond?
The Michigan Department of State advised SuretyBonds.com that existing bonds must be increased with a rider amendment document at their next renewal term since they were originally filed as continuous until canceled. SuretyBonds.com can deliver official Michigan dealer bonds and rider increase documentation by email, which will expedite the process for increasing your bond at renewal. Dealers have until December 31st, 2023, to file paperwork that increases their Michigan auto dealer amount from $10,000 to $25,000. The state has advised licenses will be canceled for dealers who do not file the mandatory paperwork to increase their bond to $25,000 by December 31st, 2023.
How will this bond increase affect my renewal?
Since the state requires the increase to existing bonds be made at the next renewal term, dealers with active bonds already on file with the state should expect increased premiums that coincide with the bond amount increase for their next renewal term. Once dealers have paid their renewal invoice, they’ll need to file the newly provided paperwork with the state. Because SuretyBonds.com offers digital document delivery for official Michigan dealer bonds, individuals who renew with SuretyBonds.com can file their required paperwork quickly and easily.
How can I get a new Michigan vehicle dealer bond?
If you’re unsure who your current surety provider or insurance carrier is or are looking for a surety provider that offers faster, friendlier, and more affordable bond service, you can apply for a new Michigan dealer online 24/7 or call 1(800)308-4358 to speak with a surety expert about your bonding needs. All new Michigan uniform dealer surety bonds issued with an effective date of January 23, 2023, or later must be filed with the new $25,000 bond amount.
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