Illinois Designated Agents Bond for Vehicle Dealer

Click Here To Apply For Your Illinois Designated Agents Bond for Vehicle Dealer

The Illinois Designated Agents Bond for Vehicle Dealers is required by the Office of the Secretary of State, Vehicle Services Department. The required bond amount  is $50,000. The bond has a mandatory expiration date each year of 12/31. The surety bond states that the agent must collect and remit the required title and registration fees. This bond is required for all who wish to be vehicle dealers.

An Illinois Designated Agent for Vehicle Dealers is a person who is authorized by a licensed vehicle dealer to act on the dealer’s behalf in certain matters, such as collecting and remitting sales taxes and registration fees, and issuing temporary registration plates. An Illinois Designated Agents Bond for Vehicle Dealer is the same as an Illinois Motor Vehicle Dealer Bond. The two terms are used interchangeably

How to get the Illinois Designated Agents Bond for Vehicle Dealer

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Illinois Designated Agents Bond for Vehicle Dealers will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

What does the surety bond do?

An Illinois Designated Agents Bond for Vehicle Dealers is a type of surety bond that is required by the Illinois Secretary of State for all Designated Agents for Vehicle Dealers. It guarantees that the agent will comply with all applicable laws and regulations, including:

• Collecting and remitting sales taxes and registration fees
• Issuing temporary registration plates
• Processing title transfers
• Handling vehicle registrations and renewals
• Responding to customer inquiries and complaints

If a Designated Agent for Vehicle Dealers fails to comply with their duties, the surety company that issued the bond will be liable for any damages that are incurred by consumers or the state of Illinois. This helps to ensure that consumers are protected from financial losses and that the state receives the revenue that it is owed.

Here are some examples of how an Illinois Designated Agents Bond for Vehicle Dealers can protect consumers:

• If a Designated Agent for Vehicle Dealers collects sales taxes and registration fees from consumers but fails to remit them to the state, the surety company will be liable for the unpaid taxes and fees.
• If a Designated Agent for Vehicle Dealers issues a temporary registration plate to a consumer but fails to process the vehicle registration, the surety company may be liable for any fines or penalties that the consumer incurs as a result.
• If a Designated Agent for Vehicle Dealers mishandles a vehicle title transfer, the surety company may be liable for any losses that the consumer incurs as a result.

If the surety pays a claim on a bond it will look to the bond principal (licensee) for reimbursement.

To become a Designated Agent for Vehicle Dealers in Illinois, you must follow these steps:

1. Meet the eligibility requirements. You must be at least 18 years old, be a resident of Illinois, have a clean criminal record, and pass a written examination administered by the Illinois Secretary of State.
2. Complete the Designated Agent for Vehicle Dealers application and submit it to the Illinois Secretary of State.
3. Obtain a surety bond from a surety company that is authorized to do business in Illinois. The bond amount is $50,000 and it guarantees that you will comply with all applicable laws and regulations.
4. Pay the application fee and bond fee. The application fee is $100 and the bond fee is $500.
5. Once your application is approved and you have paid the required fees, you will be issued a Designated Agent for Vehicle Dealers license.

Your license will be valid for one year and must be renewed annually. To renew your license, you must submit a renewal application and pay the renewal fee.

Once you are licensed as a Designated Agent for Vehicle Dealers, you can begin working for a licensed vehicle dealer. Your duties will vary depending on the needs of the dealer, but may include collecting and remitting sales taxes and registration fees, issuing temporary registration plates, processing title transfers, and handling vehicle registrations and renewals.

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