Connecticut Motor Vehicle Dealer, Repairer and Leasing Company Bonds
Connecticut Motor Vehicle Dealer, Repairer or Leasing Company Bond Information
As required by Section 14-52(b) and Section 14-15 of the Connecticut General Statutes, auto dealers and related motor vehicle businesses in the state must furnish a surety bond to the Commissioner of Motor Vehicles as a condition of licensure.
The surety bond amounts increased effective July 1, 2022 to:
- $60,000 for motor vehicle dealers (new or used)
- $15,000 for motor vehicle leasing or renting companies
- $25,000 for motor vehicle repairers or limited repairers
How Much Does a Motor Vehicle Dealer Bond Cost in Connecticut?
Most Common Bonds
All bonds in effect before July 1, 2022 are required to file a bond rider to increase the bond amount before July 1, 2022. The rider will generally include additional premium due to the surety. The surety or surety agent must file the bond rider with the state; riders will not be accepted directly from the principal.
The notice from the state dated May 26th, 2022 reads as follows:
Action Required by All Dealers, Repairers, and Leasing License Holders
Public Act 22-44, An Act Concerning Recommendations by the Department of Motor Vehicles and Various Revisions, was passed during the 2022 legislative session. Section 2 of said public act, amended Section 14- 52(b) of the Connecticut General Statutes (CGS), increasing surety bond amounts for licenses, effective July 1, 2022, are as follows:
License Type Current Bond Amount Bond amount as of 7/1/22 New / Used Dealer $50,000 $60,000 General Repairer $5,000 $25,000 Limited Repairer $5,000 $10,000 Leasing $10,000 $15,000
All above license holders should contact your surety bond company, and request that it provide a bond rider, in the increased amount, to the Department of Motor Vehicles (DMV). All bond riders must be emailed directly from the bond company to the DMV and should be sent to the following email address: DMV.DR@ct.gov. DMV will not accept bond riders that are received directly from licensees.
All bond riders showing the increased amount, must be received by DMV, no later than July 1, 2022. If DMV does not receive the required bond rider, your business license may be suspended.
All Dealer and Repairer License Holders
Public Act 22-141, An Act Prohibiting Certain Vehicle Storage Agreements as a Precondition to Vehicle Towing, was also passed during the 2022 legislative session and amended Section 14-66 of the Connecticut General Statutes.
Amendment to CGS 14-66(b) will be effective October 1, 2022, and read as follows:
(b) “No licensee shall require the owner to sign a contract for the repair or storage of such owner’s damaged vehicle as part of the towing consideration or to sin an order for the repair or, or authorization for estimating repairs to such vehicle, until the town job has been completed. No licensee shall tow a vehicle in such a negligent manner as to cause further damage to the vehicle being towed. Nothing in this subsection shall be construed to prohibit the licensee and owner of the damaged vehicle from entering into an agreement for the repair or storage of such vehicle.”
Dealers and Repairers Unit
What Does a Motor Vehicle Dealer Bond Protect Against?
The surety bond provides a guarantee to the state that the principal will comply with the provisions of any state or federal law or regulation governing business conduct. Any party sustaining a loss due to acts of the licensee including omissions or other acts constituting reason for suspension or revocation of the license may seek indemnity for such loss. The surety company may cancel the bond by providing 30 days written notice to the state.
Getting Your Connecticut Business License or Registration
The following is an overview of key auto dealer licensing requirements in Connecticut.
- Completed K7 Application
- Class B Survey Map
- K6 marker Plate Request
- Trade Name Certificate
- K89 Storage Rates
- Financial Responsibility Certificate
- Surety Bond
- DEEP Referral Sheet
- K200 VIN Etching Form
- K193/K193A Financial Statement
- Copy of Drivers License
- Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.
Other Helpful Information and Links