How much do vehicle surety bonds cost in Washington?
The Washington State Department of Licensing requires vehicle and vessel dealers, registered tow truck operators, wreckers and vehicle manufacturers to post surety bonds.
Businesses or auctioneers that sell new or used cars, trucks or motor homes at wholesale or retail must be licensed and bonded as a Washington motor vehicle dealer. The required bond amount for these professionals is $30,000.
Professionals who manufacture mobile homes only must post a $40,000 surety bond, while professionals who manufacture travel trailers only (including 5th-wheel trailers) must post a $20,000 bond.
Professionals who sell at least 15 vessels per year with a retail value greater than $2,000 must post a Washington vessel dealer surety bond in the amount of $5,000.
Registered tow truck operators, including professionals who transport or impound unauthorized vehicles, must post a $5,000 surety bond.
Vehicle wreckers must post a $1,000 surety bond.
|Bond Type||Bond Amount||Cost|
|$1,000 Motor Vehicle Bond Wrecker||$1,000||$100|
|$5,000 Motor Vehicle Bond Vessel Dealer or Registered Tow Truck Operator||$5,000||$100|
|$20,000 Motor Vehicle Bond Travel Trailer Manufacturer||$20,000||Price Varies||GET A QUOTE|
|$30,000 Motor Vehicle Bond New or Used Vehicle Dealer||$30,000||Price Varies||GET A QUOTE|
|$40,000 Motor Vehicle Bond Mobile Home Manufacturer||$40,000||Price Varies||GET A QUOTE|
Why do I need this bond?
By posting a Washington vehicle surety bond, principals (dealers, manufacturers, tow truck operators and wreckers) pledge to uphold all laws of the state of Washington while conducting business under their specified license. If the principal conducts business unethically and unlawfully and an entity suffers financial loss as a result, the surety will reimburse harmed parties up to the full penal sum of the bond. The principal, in turn, must pay the surety for all damages paid out.
What’s the fine print?
Vehicle, vessel, vehicle manufacturer, registered tow truck operator or wrecker bonds in Washington are continuous until canceled. The surety can cancel the bond at any time by giving the Department of Licensing written notice of cancellation. Cancellation becomes effective 30 days after the department receives the notice.
This bond form covers vehicle dealers, vessel dealers, vehicle manufacturers, registered tow truck operators and wreckers. Applicants should be sure to indicate the correct license type on the surety bond form.
How to become a vehicle dealer, wrecker, or manufacturer in Washington
Although there are specific licensing requirements for each license type covered by this surety bond, there are a few blanket requirements applicants must fulfill, including posting a surety bond in the proper amount and submitting a completed Business License Application.