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Monday, November 25, 2013

How to Get an Auto Dealer Surety Bond

Many auto dealerships are required to be licensed and bonded. A surety bond is a three party guarantee by the dealer (principal) to protect the consumer (obligee). The backer of the bond (surety) ensures that the principal will fulfill its obligations to the obligee.
Why do I need a surety bond?

Surety bonds protect and benefit the consumers and the industry itself, providing financial guarantees and protections against fraud or unethical business conducts by the dealer. The bond also helps the consumers recover from any resulting financial loss. It's also important to select the right bond agency to avoid slow turnaround time, extra/hidden fees and even failure to obtain the bond.

What is the difference between a surety bond and garage liability insurance?

A surety bond serves to protect the consumer against any fraud committed by the dealer. Garage liability insurance protects automobile dealers for liabilities arising out of their business operations.

  • Surety bond: a contract among at least 3 parties protecting the principal.
  • Insurance: a form of risk management with a two-party contract.

How much does a surety bond cost?

The price of a surety bond will depend on the amount of bond needed and statutes. By analyzing your application, financial background and credit check, you may be qualified for very low prices!

Where and how can I get a surety bond?

Ashton Agency has helped thousands of dealers nationwide to get their surety bond and garage liability insurance with simple solutions at affordable rates. Call (800) 451-4854 (East of the Mississippi) or (800) 452-2663 (West) to get a free quote today!

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