New Dealers - Get started insurance tips


Dealership Application


  • When submitting your application, you need the original copy of your Dealer Bond and a certificate of insurance from your Dealership Insurance agent.

  •  Your dealership name and address on your application must match your Dealer Bond and Dealership Insurance.  If you change the information on your application after the bond and insurance certificate are issued, the dealer bond will have to be reissued.  The dealership policy can be endorsed, and a new certificate issued to reflect the new information.

  •  I recommend you get the zoning and the tax clearance done prior to shopping for a bond or insurance.  I have had a few Dealers pay for the bond and insurance, but then had to wait 2 to 3 months to get the lot rezoned.

Dealer Bond


  • The dealer bonds are based on your credit score, so if you have a credit score that might be below 650, look for a bond before you sign a lease for a lot, or spend a lot of money.  Dealer bonds normally cost $240 per year, but the bonds for people with credit issues can be as high as $5,000 per year. 

  • The dealer bond is continuous until cancelled. To renew the bond, you simply pay the annual premium every year.

  • Make sure you make several copies of your signed bond prior to mailing it to Dealer Licensing. You will probably need a copy at some point for financing companies, or auctions.

Reduce your risk of claims

  • Make sure you get a copy of the test driver's license. Many dealers use a multi-function scanner/printer to make a copy. If they do not have a drivers license, do you really want them test driving your car?

  • Make every effort to accompany every test driver. Study after study has demonstrated that test drivers have significantly less accidents when a dealership owner or employee is with them.

  • Most test driving accidents occur during overnight and weekend test drives. Most dealers state a mileage and/or time limit for test drives.