How much does a registration service surety bond cost?
The cost of your registration service surety bond is a small percentage of the total amount of the bond. The total bond amount is determined individually by each state that requires the bond. The state of California, for example, requires a registration service surety bond in the amount of $25,000.
To get this bond, you’ll need to pay only a small fraction of that amount. Depending on your application, you could obtain the bond for a sum between $188 and $750.
Your exact cost will be determined by the surety, based on their evaluation of your application. To determine your rate, the surety looks at your personal credit score, your financial statements, your assets, your work experience and record, and more. Among these, your credit score is the most important indicator.
Applicants with a score of 700 FICO or more are typically offered the lowest rates: so-called standard market rates. These rates are between 1% and 3% of the total bond amount. Take a look at the table below to find out how much you might need to pay to get a registration service surety bond in California.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|California Registration Service Surety Bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
Options for applicants with bad credit
Applicants who don’t have a high credit score might be worried that they won’t be offered a bond. Thanks to our Bad Credit Program, bad credit applicants can get bonded with the same level of ease as everybody else, at just a slightly higher rate.
Over the years, our program has allowed bad credit applicants to get the bonds they need for their license, in order to launch their business. In turn, this has allowed many of them to improve their credit score, and get better rates with us at a later time when they their bond.
Applicants with lower credit score are offered higher rates because they constitute a higher risk to the sureties who issue bonds to them. How much exactly you will need to pay for a bond is determined upon review of your application. To get your free quote, just fill out our quick application.
What is the purpose of the registration service surety bond?
The purpose of the registration service surety bond is to guarantee that registration service providers will comply with any applicable rules and regulations when registering vehicles, or renewing vehicle registrations. Vehicle ownership transfer is also included under this bond.
The bond provides protection to the public and the state in which the registration service provider conducts business. It protects them by securing financial compensation in the full amount of the bond to cover for any damages that may occur as a result of a provider’s actions. Such actions may include fraud, malpractice, negligence, dishonesty or anything else specified in the state law or the surety bond agreement.
In the case of a claim against the bond, the surety will investigate the situation and determine whether the claimant has a right to receive compensation under the bond agreement. If the surety extends compensation, the bonded registration service provider is obliged to repay the surety in full for that compensation.
How to get a registration service provider license?
To become licensed as a registration service provider, you will be required to submit a valid application which will typically be provided by your state’s Department of Motor Vehicles (DMV). You will most likely also need to cover most of the following requirements:
- Complete and submit a license application form
- Submit personal data and documentation such as social security number and driver’s license
- Complete a Live Scan Clearance (fingerprint check)
- Obtain a registration service surety bond
Make sure to contact your local DMV if you have any additional questions regarding the licensing process for registration service providers.
If you want to know more about the bonding requirements in your state, call us at 866.450.3412 to speak to our professionals. We will be happy to provide you with additional information, and assist you with your bond application if you need help.