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Rhode Island bonds

Rhode Island — Vehicle Dealer Bond

Rhode Island motor vehicle dealers and auction dealers file $50,000 security annually to protect good-faith purchasers from covered violations. Have the license details ready and start with Propeller.

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Recorded state
Rhode Island
Bond type
Motor Vehicle Dealer Bond
Category
Vehicles, titles & transportation

What this bond does

Ensure financial responsibility to indemnify good-faith purchasers who suffer loss due to violations of laws or regulations.

Who needs it
Motor Vehicle Dealer or Motor Vehicle Auction Dealer
Who it protects
A good-faith purchaser who suffers any loss occasioned by a violation of the General Laws or the Rules and Regulations of the Department.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Bond Requirement

All motor vehicle dealers and auction dealers must file a $50,000 bond annually.

Bond Purpose

The bond serves to indemnify customers for losses caused by dealer non-compliance.

Sources

Have these ready

  1. Identify the dealer license and renewal period, and keep the bond separate from dealer-plate and vehicle-inspection paperwork.
  2. Have the legal applicant name, requesting party and any required form available for the provider application.
  3. Compare the requested sum and effective dates with the actual option and issued document.

Questions about this bond

Who is protected?

The regulation protects good-faith purchasers who suffer losses from violations of the governing laws or dealer rules.

What should I prepare for the application?

Have the dealer or auction-dealer legal name, license details and renewal period ready. Keep dealer-plate and inspection paperwork separate.

Where do I start?

The Southern Agency's Purchase Now link opens Propeller in a new tab. After issuance, check the completed bond and file it with the licensing documents as directed.

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