Applicants for the $100,000 New York automobile broker bond who are approved, will pay $1500 annual premium. Our agency will only be able to bond those with good credit profiles. Please read below for further details.
Auto brokers in New York state are regulated and licensed by the New York Department of State. In 2017 and 2018 there were some significant changes to the licensing regulations for auto brokers. The most financially consequential of these was the increase from a $75,000 surety bond to a New York auto broker bond of $100,000, as a prerequisite for licensing.
The surety bond is required as per §740-a of the General Business Law in New York state.
This surety bond is available from AmeriPro Surety Bonds.
The purpose of the $100,000 New York auto broker bond is to protect the state of New York, and customers, from any acts of fraud, theft, criminal misconduct or malfeasance committed on the part of a licensed New York auto broker or brokerage company in the performance of their duties.
The bond also serves as a financial guarantee that a New York auto broker will be in compliance with state laws regulating their professional conduct.
Of note, the New York auto broker bond is not an insurance policy for the auto broker or brokerage.
Rather, the bond’s requirement is solely and exclusively for the protection of others.
Should a claim be paid on this surety bond, it will be the legal responsibility of the principal (in this case, the New York auto broker or brokerage) to reimburse the surety for all costs involved.
As an applicant for this surety bond, the cost you will pay will be a small fraction of the $100,000 surety bond requirement.
The application process can be completed over the phone with our agency, and we are glad to oblige.
Because of this bond’s large size, questions involved during the application process may include the request for information regarding:
And, importantly, a credit check will perhaps be the largest determining factor for the cost (premium) of this auto broker bond.
As a way to prepare financially, it should be noted that auto broker bond renews annually for as long as you are licensed in New York state.
After your purchase of the auto broker bond from our agency, a copy of the bond can be emailed to you, and the original will be mailed out by the next business day.
You are only permitted to file the original copy of the bond with New York state, but you should keep a copy for your records
Once received by you, you will sign the bond in the appropriate areas and mail the bond to the licensing authority.
Besides the $100,000 New York auto broker bond requirement (which is probably your most expensive licensing cost), as an applicant for the auto broker license you will also need to:
AmeriPro Surety Bonds is honored to work both with new persons to the New York auto brokerage industry (congrats!), and those who are existing auto broker businesses who need to renew or update their surety bond.
Our agency will work for you to obtain you the best surety bond pricing available to meet your needs.
We provide surety bonds of all types throughout New York state and nationwide...
We look forward to helping you get bonded!