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Washington bonds

Washington — Vehicle Dealer Bond

Washington motor vehicle dealers file $30,000 surety security for covered dealer-law violations. Check your licensed classifications and locations, then begin the bond application with RLI.

Also known as Washington Vehicle Dealer Bonds

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

What this bond does

A financial surety requirement to ensure dealers conduct business in conformity with state dealer laws and provide recovery for injured parties.

Who needs it
Motor vehicle dealers in Washington state
Who it protects
Retail purchasers, consignors, or other motor vehicle dealers who suffer loss due to a dealer's statutory violation.

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 Amount

Motor vehicle dealers are required to file a $30,000 surety bond with the department.

Recovery Scope

The bond covers retail purchasers and other dealers who sustain losses due to a dealer's violations of chapter 46.70.

Aggregate Liability

The total liability of the surety to all claimants cannot exceed the bond amount.

Sources

Have these ready

  1. List each licensed classification and check the highest applicable bond amount rather than adding unrelated forms together.
  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

Are there different bond amounts for different dealer types?

Yes, $30,000 for motor vehicle or trailer dealers and $5,000 for miscellaneous dealers.

What happens to the license if the bond is exhausted?

The vehicle dealer license is automatically deemed canceled upon exhaustion of the bond penalty or cancellation by the surety.

Does a dealer need one bond for every location?

Yes, dealers must maintain a bond for each business location and provide coverage for all temporary subagencies.

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