Deadline Approaching for Illinois Dealer Bond Renewal
In order to renew their licenses, Illinois auto dealers need to submit a renewal application by November 15th. But once done, this does not conclude the process. To stay compliant, they also need to renew their auto dealer bond, officially known as Illinois Designated Agent Bond for Vehicle Dealers by December 31. Let’s delve into more details and explain how bond renewal works.
Do all dealers have to renew their Illinois dealer bonds?
Yes, every dealer that sells more than 5 vehicles in a 12-month period has to get a dealer bond in support of their license. The bond is a requirement aimed to protect your customers in case you try to defraud them. For those unclear with the definition of a surety bond, it’s important to learn more about it, so as to stay out of trouble.
What is the deadline for the surety bond renewal?
You need to show proof that you have obtained the bond by December 31st. However, we always advise the dealers we work with to apply for the bond as early as possible. The end of the year is a busy time for everyone, which may delay processing times. Moreover, starting off early may give you a better chance of getting bonded at the lowest possible price.
What do I have to do to renew my dealer bond?
There isn’t much work required on your part. The surety agency that you work with should send you a renewal quote with this year’s premium. If you are happy with it, you can sign the bond form and the agency will take care of the submission. Usually, this happens electronically and no further action is required on your part.
Still, we advise you to do some shopping around before you choose an agency, as rates will always vary. We invite you to check out our low rates by getting a FREE online bond quote that doesn’t oblige you in any way.
How much does the bond cost?
You are lucky in that the total bond amount required by the state of Illinois is pretty low compared to most other states – all licensed dealers must post a $20,000 dealer bond. *UPDATE*: As of Jan.1, 2018 the cost of the designated agent bond is being raised to $50,000.
To get the bond you pay a premium varying between 0.75% and 10%, mostly based on your credit score. If there isn’t a drastic change in your score or your credit history, this year’s premium will be the same as last years. Read on to find out what you can do to reduce costs if you are not happy with your premium.
How can I reduce my dealer bond premiums?
Improving one’s credit score is the best step towards reducing your bond premium, but this isn’t always an easy thing to do. However, some underwriters are willing to look into other aspects of your business as well. If you are an experienced dealer you can point that out as it makes your business looks more trustworthy and that’s what a surety wants to know before reducing premiums. The same goes for demonstrating strong financials – a signal that you are less of a risk to the surety as you are financially strong enough to pay back your claims.
Final Tip: Work with Lance Surety Bonds
One last tip for reducing your premiums is choosing to work with us. As we mentioned, underwriters have different criteria when giving premium quotes, so the same application gets different offers, depending on the company. As we work with many different bonding companies, we are able to send out your application to many of them and pick the one that offers the lowest price. We also offer fast approval and online bond application to save you time and annoying paperwork.
No need to wait anymore. Apply for a FREE bond quote with us and rest easy about staying compliant in 2018. We are waiting for you!