NEW MEXICO

NEVADA
MOTOR VEHICLE DEALER BOND

Nevada Motor Vehicle Dealer Bond

 

Getting a Nevada motor vehicle dealer bond is a key step to becoming a licensed car dealer in the state. The motor vehicle dealer bond serves as an extra guarantee that your dealership will follow all rules and regulations that govern motor vehicle dealers in the state of Nevada.

Just like all surety bonds, the Nevada motor vehicle dealer bond serves as protection for the general public, and not as insurance for your business. In case you don't follow the rules and your obligations under the bond, a claim can be made against you. If proven to be a legitimate claim, the penal sum of the bond is used to compensate the affected parties. The surety covers the costs of claims up front, which you’ll be required to reimburse in full. This means you should avoided having any claims, as they can cause serious harm to your business and finances.

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Nevada Motor Vehicle / Auto Dealer Bond Cost

While $100,000 might seem like a large amount to pay, in reality, you only need to pay a percentage of it to get bonded, which is called the bond annual premium. The surety company will look at several factors to determine your motor vehicle dealer bond cost, most importantly, your credit score. Factors such as years licensed and years of industry experience will also play a factor in your dealer bond cost.

  • If your credit score is above 650, you’ll likely have to pay between .75% and 2% of the bond amount.

  • For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.

Nevada Motor Vehicle / Auto Dealer License and Renewal

Who is required to be licensed?

  • All Dealers of: Horse Trailers without living quarters or utility trailer with an unladen weight of 3,501 or more

       (Requires $50,000 Surety Bond)(Requires Certificate of Insurance)

 

What are the dealer license fees?

  • New License Fee: $125.00

  • Fingerprint Processing Fee: 40.25 per principal

  • Late Fees: A license that expires for failure to renew may be reinstated upon submission of a completed renewal application, renewal fee, and a $25.00 late fee.

  • License Renewal Fee: $50.00

What are the bonding requirements?

  • All licensees are required to submit a continuous bond to NVDMV.

  • The company name must read EXACTLY as it does on the application form, including your entity name and your DBA name.

  • Once the bonding company completes the bond, it must be signed by an owner, partner, corporate officer, or member on the front as “Principal”. This line can be found above the insurance agent’s signature on the face of the bond.

  • The bond company must attach a power of attorney to the bond if using an attorney-in-fact

  • All bonding documents must be originals or certified copies

What are the insurance requirements?

  • Insurance certificates must show automobile liability coverage with the Department listed in the certificate holder section. Combined Single Limit (CSL) means an aggregate of the total liability (bodily injury and property damage) per accident. CSL is acceptable on a certificate of insurance as long as the amount is equal to or greater than the amount listed below. Agents are required to submit the appropriate ACORD form, or a comparable company form, titled “Certificate of Liability Insurance”. Please note the following:

  • The insured name must match the DBA name listed on the business application.

  • All coverage types as required below must be clearly marked.

  • If a “Garage Liability” insurance policy is acceptable per the below requirement, it may be indicated by checking one of the empty boxes in the “Automobile Liability” section and filling in “Garage Liability” or by submitting the appropriate “Garage Liability” form.

  • Descriptions of operations may be noted in the “Description of Operations/Locations/Vehicles” section.

Dealers, Rebuilders, Manufacturers, Distributors and Transporters

Garage Liability policy (including automobile liability) or Commercial Auto policy is acceptable per NRS 482.325. Language must include one of the following: Any auto (symbol 21 for Garage Liability or symbol 1 for Commercial Auto), CSL of at least $95,000 per accident or bodily injury $25,000 per person, bodily injury $50,000 per accident, property damage $20,000. OR All owned or scheduled autos, plus hired and non-owned autos (symbols 22 or 27 plus 28 and 29 for Garage Liability or symbols 2 or 7 plus 8 and 9 for Commercial Auto), CSL of at least $95,000 per accident or bodily injury $25,000 per person, bodily injury $50,000 per accident, property damage $20,000.

Trailer Dealers, Manufacturers and Distributors

 

Garage Liability policy (including automobile liability) or Commercial Auto policy is required only when the licensee requests or has special plates issued by the Department per NRS 482.325. Language must include one of the following: Any auto (symbol 21 for Garage Liability or symbol 1 for Commercial Auto), CSL of at least $95,000 per accident or bodily injury $25,000 per person, bodily injury $50,000 per accident, property damage $20,000. OR All owned or scheduled autos, plus hired and non-owned autos (symbols 22 or 27 plus 28 and 29 for Garage Liability or symbols 2 or 7 plus 8 and 9 for Commercial Auto), CSL of at least $95,000 per accident or bodily injury $25,000 per person, bodily injury $50,000 per accident, property damage $20,000.

Request a FREE Bond or Insurance Quote today!

 

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