Rhode Island Auto Dealer Bond

1. Apply for Your Rhode Island Auto Dealer Bond

We make it easy for our valued Rhode Island customers to set up their new bonds. To begin our straightforward bond process, fill out the online application. This step usually takes only a few minutes to complete. 

Miles had plans to open a car dealership in Providence and needed a bond for the license application. He recently applied online. We gave him a quote immediately and answered his questions. After Miles paid his bond premium, we sent the document to him via email right away. 

2. Review Your Auto Dealer Bond Quote

We take pride in our expedited process. After filling out the application, you will get an instant quote for your new bond. However, if an application is more challenging, the quote is available within 48 hours. 

3. Pay the Bond Premium Online

When you are ready to buy your bond, you can conveniently pay the premium online. We will quickly prepare your bond and deliver it to your email inbox promptly. If requested, we can also mail the bond to you.

Do you have questions or need assistance? Our bond experts are eager to support you. For assistance, contact us or call us at (877) 514-5146.

Auto dealer licenses are processed by the Rhode Island Department of Revenue Division of Motor Vehicles. You must submit a $50,000 surety bond with your license application. This provision is established in Rhode Island Chapter 1499 Public Laws 1956.

The surety bond must name the Rhode Island Dealers’ License and Regulations Office as the obligee. The bond runs continuously with the motor vehicle dealer license and must be renewed with the license renewal.

However, the surety company can cancel the bond prior to the license’s renewal date. This may occur if the bond premium payment is not paid annually. To cancel the bond, the surety company must provide a 60-day written notice to the principal and the obligee.

Your ability to do business as a licensed motor vehicle dealer in Rhode Island is jeopardized if the required surety bond is not renewed or is canceled. To renew and maintain the surety bond, the premium payment must be made annually.

As part of our commitment to providing our customers with the best experience, we will help you maintain your bond. Each year prior to the premium’s due date, we will contact you with renewal payment instructions.

A claim against your motor vehicle dealer bond must be made by the claimant directly to the surety company. After a comprehensive investigation, the surety company will determine if the claim is substantiated. The claim will be denied if it is not validated during the investigation.

The claimant will be properly compensated if the claim is substantiated. The bond’s terms state that the aggregate liability against the claim will not exceed the bond’s penal sum. The auto dealer must reimburse the surety company for the claim payout.

The Rhode Island Department of Motor Vehicles Dealer’s License and Registration Office processes auto dealer license applications. For more information about becoming a licensed dealer, review our Rhode Island dealer license guide. 

When applying for a Rhode Island auto dealer license, you must provide:

• Application form
• Surety bond
• Bureau of Criminal Identification form for each corporate officer, partner or owner
• Business property lease agreement
• City or town license
• At least four pictures of all sides of the building and lot
• Business entity documents, if applicable
• Manufacturer/Distributor Issue Letter of Intent

If the licensing application is approved, additional documentation will be required. For additional information and to submit the licensing documentation, contact:

Rhode Island Division of Motor Vehicles
Dealers’ License and Regulations Office
600 New London Avenue
Cranston, RI 02920-3024
Phone: (401) 462-5733