How to Switch Surety Bond Providers Without Interrupting Your License

Switching your auto dealer surety bond provider can save you money and improve your service—but if done incorrectly, it can also put your dealer license at risk. The good news is that the process is simple when you follow the correct steps and work with a specialist who understands dealer licensing.

Here is a clear, step-by-step guide to switching your bond provider without any delays, lapses, or compliance issues.

1. Get Approved for Your New Auto Dealer Surety Bond First

Never cancel your existing bond until your new one is fully approved and filed.

Your new provider will:

• Run a soft credit check (no impact on your credit score)

• Underwrite your new bond

• Prepare the bond documents correctly

All American Bonds and Insurance can approve most dealers the same day they apply and offers some of the fastest state filings in the industry. You can start your switch at QuickerBonds.com.

2. Confirm the New Bond Meets Your State Requirements

Every state has its own rules and requires precise:

• Bond amounts

• Bond forms

• Bond wording

• Filing formats

All American Bonds and Insurance handles all of this for you and ensures every detail is correct before filing. This prevents costly delays that could jeopardize your license.

3. Let Your New Provider File the Bond With the State

Your new bond must be filed with your licensing agency before anything is canceled.

All American Bonds and Insurance will:

• Prepare the new bond

• Issue the power of attorney

• File electronically or by mail depending on the state

You’ll receive confirmation once the state attaches your new bond to your dealer license.

4. Once the State Confirms Receipt, Cancel Your Old Bond

After the new bond is active in the state system, you can safely cancel the old one.

Most bonds have a 30–60 day cancellation period. This is completely normal and does not affect your license as long as the new bond is already on file.

5. Keep Documentation of Your Bond Transition

Make sure you keep copies of:

• The new surety bond

• The cancellation notice for the old bond

• Proof of filing or acceptance from the state

Maintaining a clean paper trail protects your business from future licensing or compliance issues.

Common Mistakes That Create Licensing Problems

Avoid these costly errors:

• Canceling the old bond before the new one is filed

• Forgetting to confirm state-required wording and forms

• Switching providers during unresolved compliance issues

• Assuming the state updates your file automatically

• Working with agents who do not specialize in dealer bonds

When you work with experts like All American Bonds and Insurance, these risks disappear.

Why Dealers Choose All American Bonds and Insurance

Dealers nationwide switch to All American because they offer:

• Fast approvals, even for low or challenged credit

• The lowest rates from every major surety market

• Expertise in state filings in all 50 states

• Bond specialists who understand dealer licensing

• A streamlined online process through QuickerBonds.com

If you want a smooth, hassle-free transition and better service, they are the best choice in the industry.

Conclusion

Switching surety bond providers is simple when you follow the correct order: get approved for the new bond first, file it with the state, then cancel the old one.

With the right partner, you can reduce your bond cost, improve your support, and keep your dealer license active without any interruptions.

Ready to switch?

Start your transition today at QuickerBonds.com. All American Bonds and Insurance — the trusted leader in auto dealer surety bonds.