NEW MEXICO
ALASKA
MOTOR VEHICLE DEALER BOND
Alaska Motor Vehicle Dealer Bond
Getting a Alaska 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 Alaska.
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Surety Bond Name: Alaska Motor Vehicle Dealer Bond
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Surety Bond Amount: $100,000
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Obligee: Alaska Department of Administration
Just like all surety bonds, the Alaska 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.
Alaska 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.
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If your credit score is above 650, you’ll likely have to pay between .75% and 2% of the bond amount.
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For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.
Alaska Motor Vehicle / Auto Dealer License and Renewal
Who is required to be licensed?
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All new and used motor vehicle dealers.
What are the dealer license fees?
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New/renewal Dealer License fee is $50 and can be made payable via money order, check, or credit card agreement.
What are the bonding requirements?
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All licensees are required to submit a continuous bond in the amount of $100,000 to ADOA.
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The company name must read EXACTLY as it does on the application form, including your entity name and your DBA name.
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Once the bonding company completes the bond, it must be signed by an owner, partner, corporate officer, or member on the front as “Principle”. This line can be found above the insurance agent’s signature on the face of the bond.
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Be certain the notary signs and seals the bond
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The bond company must attach a power of attorney to the bond if using an attorney-in-fact
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All bonding documents must be originals or certified copies
What are the insurance requirements?
Each dealer must provide proof of workers' compensation insurance and liability insurance for bodily injury and property damage.
Whether applying for your first auto dealer license in Alaska, or renewing an existing one, you have to submit a dealer application form, together with all necessary documents that prove you meet the requirements.
What are the location requirements?
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Permanent office structure where the dealership records can be stored and reviewed safely.
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All signs and banners must be permanently affixed.
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The area must comply with all zoning and business requirements.
Considerations
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Application packets received that are incomplete will be returned.
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Please allow up to ten working days for processing.
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Your business information must be filed with the Department of Commerce before a dealer license will be issued.
Common Bond Types: (Many others are available)
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