Montana MVD Bond

Montana MVD Bond

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A Montana MVD Bond is a type of surety bond required by the Montana Motor Vehicle Division (MVD) before issuing certain types of motor vehicle licenses. These bonds are required to ensure that licensees comply with all Montana motor vehicle laws, regulations and requirements. The bond amount is set by the MVD, and it can range from $10,000 to $100,000. The bond must be issued by an approved surety company, and the licensee must pay an annual premium for the bond. If the licensee fails to comply with the MVDs regulations, the surety company may be required to pay out a claim against the bond. The Montana MVD Bond is an important part of the licensing process for many types of vehicles in the state, and it helps to protect both the state and motorists from any potential liabilities.

What is an Montana Car Dealer Bond? 

Montana Car Dealer Bonds are required by the Montana DMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $25,000.  The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The State requires a Car Dealer bond for each license you hold:  

$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers

$15,000 surety bond for motorcycles and quads

$5,000 surety bond for motorboats, personal watercraft, snowmobiles and off highway vehicles

Different parts of a bond:

 There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Montana MVD Bond Requirements and Information

·         New Motor Vehicles: cars, trucks, buses, and light vehicles

·         Used Motor Vehicles: cars, trucks, buses, and light vehicles

·         New Recreational Vehicles: motor homes and travel trailers

·         Used Recreational Vehicles: motor homes and travel trailers

·         Trailers: semi-trailers and pole trailers

·         New or Used Motorcycles: motorcycles and quadricycles

To apply, you must submit an application to the Motor Vehicle Division's Vehicle Services Bureau in Deer Lodge (see below for contact information). All information on your application must be verifiable. Failure to provide this information will prolong the processing and/or result in rejection.

When submitting an application you must include:

·         Your business name and the personal information of every person who has a stake in the ownership of your proposed dealership.

·         Contact information of your insurance carrier and of your local insurance agent.

·         The geographic location(s) of where you intend to sell as well as verification that you have complied with all applicable zoning, planning, and business codes.

·         A diagram or plan displaying the geographic location, lot dimensions, and building and sign placements, along with two or more photos of each.

·         Proof of dealership certification.

·         A copy of general liability insurance.

·         A $30 application fee.

·         A $50,000 bond for dealership licenses covering new and used cars, trucks, trailers, and motor homes.

·         A $15,000 bond for a motorcycle dealer's license.

·         A $5,000 bond for snowmobiles, non-street legal motorcycles and quadricycles and boats.

For a more detailed list of requirements read the Montana MVD's General Information and Requirements for Application for a Motor Vehicle Dealer License (MV22) guide.

    Vehicle Services Bureau Motor Vehicle Division 302,  N Roberts Helena, MT 59620 (406) 444-3661

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