Hurry Up, Nebraska Auto Dealer Bonds Expire in Less than Two Months
License renewal is once again due for auto dealers in Nebraska, which means it’s also time to talk about Nebraska auto dealer bond renewal. Each year on December 31st your bond is set to expire, which means you have to get in touch with your surety agent to renew it.
But did you know that not all surety agents know how to renew your bond quickly and save you some money at the same time? Let’s discuss some of the specifics of surety bond renewal and give you some tips on how to proceed this year.
Does the dealer bond renewal concern me?
Yes, in accordance with Nebraska legislation, all active auto dealers in the state must be licensed and bonded. The original bond form, signed by a surety bonds company, must be submitted along with your license application.
Do I still need to get insurance?
Yes, we’d like to remind you that your insurance is different from your auto dealer bond. Your automobile liability insurance protects the cars on your lot, whereas the bond protects your customers and the state.
Learn more about what is a surety bond to get a better idea of the responsibility involved in obtaining a Nebraska auto dealer bond.
How do I renew my auto dealer bond?
To renew your bond you need to contact a surety agency. Normally, the agency you worked with last year will send you a bond renewal quote. However, there is still time to shop for a better quote – the choice of a good agency can make a tremendous difference. Try getting a FREE online bond quote from us and see for yourself.
After you choose the agency to work with, they will send you the bond form, which needs to reflect the type of ownership – individual, partnership, corporate or LLC, etc. After you sign it, the agency will file have it signed for you by the bond underwriter. You will receive the original bond form by mail, which you need to attach as part of your renewal application, though you can request copies as well.
How much does surety bond renewal cost?
Surety bonds are paid in annual premiums which will not vary greatly from year to year unless there is a change in your credit history. Depending on your credit score the premium will vary between 0.75% and 10%. Since the total bond amount set by Nebraska is $50,000, this means your annual premium can be as low as $375.
Many surety agencies, however, may not tell you that other factors also come into play in determining your surety bond costs. If you or your business partners are financially strong, this can be reflected in the application and will help you get a better quote. The same goes for the experience you have in the industry, whether it is as a dealer or a salesperson – this means you are someone who knows what they are doing.
Renew your bond with Lance Surety Bonds
Choose to get your bond renewed with Lance Surety Bonds and our agents will use their know-how to get you the lowest possible rate. We have established partnerships with America’s most reputed bonding companies, which not only means you get better quotes, but also a bond that the state of Nebraska cannot reject.