Suppose you are looking to get into the Pennsylvania motor vehicle industry, whether as a dealer, salvor, or even a messenger service, you will encounter the requirement of a surety bond. But what exactly is a surety bond, and why do you need one?
Peace of Mind for Pennsylvanians
A motor vehicle surety bond acts as a financial guarantee issued by a surety company on your behalf. It protects the Pennsylvania Department of Transportation (PennDOT) and the public from financial losses in case you, the bonded business, violate any laws or regulations related to your license.
Think of it as a safety net. If you fulfill your legal and ethical obligations, no claim is made on the bond, and everyone goes about their business. However, suppose there is a complaint against you, like failing to deliver a proper title or defrauding a customer. In that case, the surety company may have to step in and cover the losses, up to the bond amount. When they cover a claim on your behalf, you are required to reimburse them for the amount paid.
Bonds for Every Motor Vehicle Role
The good news is there is a specific bond type for various motor vehicle professions in Pennsylvania. Here is a quick breakdown:
- Motor Vehicle Dealer/Manufacturer Bond: This is the most common type, required for anyone selling or manufacturing vehicles. The bond amount is $20,000.
- Motor Vehicle Salvor Bond: Needed for businesses that process or tow abandoned vehicles. The bond amount sits at $10,000.
- Card Agent Bond: This is for individuals performing limited tasks like title and registration transfers. The bond amount for card agents is $3,000.
- Full Agent Bond: Authorized by PennDOT to issue temporary registration cards and plates, and transfer registrations. Requires a $30,000 surety bond per location.
- Messenger Service Bond: If you deliver titles, registrations, or other vehicle documents for a fee, you will need this bond. The amount can vary depending on the number of branch offices, with a minimum of $50,000.
Getting Your Bond in Gear
Obtaining a Pennsylvania motor vehicle surety bond is a straightforward process with E. R. Munro and Company. You can download the application on our website at https://ermunro.com/bonds/pennsylvania-card-agent-dealer-full-agent-and-messenger-bonds/, you can contact us by phone at 877-376-8676 (877-ERMUNRO) or email us at [email protected].
