Common types of surety bonds that the DMV requires include:
California Motor Vehicle Dealer Surety Bond
Any licensed dealer of vehicles must first obtain a Motor Vehicle Dealer Surety Bond. These bonds guarantee that the dealer of automotive vehicles will comply with all federal, state, and local laws. It also stipulates that all taxes will be paid according to the Motor Vehicle Dealer license. ATV, motorcycle, RV, and aquatic vehicle dealers may require a different license. These surety bonds help protect consumers against fraud, and other wrongful acts.
California Motor Vehicle Wholesale Dealer Surety Bond
Unlike motor vehicle dealers, wholesalers buy vehicles from auction houses and other means and sell them to dealerships. A wholesale dealer who sells fewer than 25 vehicles in a year must obtain a California Motor Vehicle Wholesale Dealer Bond for the amount of $10,000.
California ICP Web User Bond
Anyone who is granted access to the DMV’s computer system to provide services to a client is required to get a California ICP Web User Bond. The amount of the bond is set at $50,000 and is used to protect the confidential nature of the DMV records.
California Surety Bond of Traffic Violator School Owner
Any business that wishes to operate a traffic school in California must obtain a Traffic Violator School Owner Surety Bond. The bond amount varies depending on the services offered at the school. For in class instruction, they require a minimum amount of $2,000, and for online or home study programs, a bond amount of $15,000 must be filed. The bond helps protect the general public in the event of any monetary loss, deceit, or misrepresentation.
California Commercial Requester Bond
For those with legitimate business needs to obtain DMV information, they must apply for a Commercial Requestor Account (CRA). If the CRA is approved and the prevalent information from the DMV includes residential addresses, then a $50,000 surety bond is also required to be filed with the DMV.
California Vehicle Verifier Surety Bond
The California Vehicle Verifier Surety Bond is required for anyone who wants to do business in California as a vehicle verifier or inspector. The bond helps protect against unethical business practices that may result in a financial loss to the state of California. It also protects against any losses that may have been caused by a misrepresented vehicle verification number, hull identification number, or engine.
California Registration Service Bond
Any company that wishes to engage in the business of processing registrations, ownership transfers, registration renewals, or issuances or amendments to any other DMV documents must be properly licensed. To be granted such a license, a California Registration Service Bond must be procured first for a minimum amount of $25,000. It protects the state of California from any financial losses that may be incurred from any misrepresentations.
California Certificate of Title Bond
This bond is sometimes required to claim ownership of a vehicle that has a lost or stolen title. The Certificate of Title Bond protects against undisclosed security interests or instances where duplicate titles have been issued. The amount of the bond depends on the estimated value of the vehicle that requires a title.
California Interstate Carrier Bond
Anyone who needs an Interstate Carrier Partner Permit will need to hold a California Interstate Carrier Bond. This bond is used to guarantee the bond holder will comply with all established rules as listed by the Interstate Carrier Partner Permit. The bond must be in the amount of at least $50,000 and needs to be purchased before a permit can be granted.
The California Department of Motor Vehicles most commonly goes by the acronym “DMV.” The DMV registers motor vehicles and boats, as well as the agency that issues driver’s licenses. They are also in charge of regulating new car dealers through their New Motor Vehicle Board, commercial cargo carriers, private driving schools, and public traffic schools.