To comply with the California law, those who approve, renew, or transfer vehicle registration ownership must be licensed by the California Department of Motor Vehicles (DMV). To get a vehicle registration service license, you need to obtain a California Vehicle Registration Service Bond, a specific type of surety bond.
A surety bond is a three-party contract between the obligee, the principal, and the surety company that issues and backs the bond. The obligee is the entity that requires the principal to have a bond (the CA DMV), and the principal, in this case, would be the vehicle registration service business. In short, surety bonds aim to protect the obligee from financial losses if the principal (registration service agent) operates fraudulently, causing injury to the public. The bond transfers liability for the principal’s actions from the obligee (the licensing agency) to the surety company and, ultimately, the principal because they must repay the surety for valid claims.
For instance, if the principal were to operate fraudulently and injure a consumer, the injured party could file a claim against the principal’s bond. If the claim is valid, the surety will compensate the injured party for damages up to the bond amount of $25,000. The principal is liable for reimbursing the surety for all claims paid out, plus any additional fees or expenses incurred.
Any person or business that wants to obtain their vehicle registration service license must get a bond as part of the licensing process. According to the California Vehicle Code Section 505.2, the act of registration includes anyone who receives compensation to process registration documents, conduct lien sales, or process vehicle dismantling documents.
How much you pay for your Registration Service Bond will largely depend on your credit score (reviewed via a soft credit check), as well as your business financials and industry experience. The surety company will analyze your application and assign you a premium rate. Your premium (how much you pay for your bond) will be your premium rate multiplied by the bond amount you need.
The California Vehicle Registration Service Bond has a $25,000 bond amount. Applicants with optimal credit scores and adequate experience in the industry may see premium rates starting as low as 1% of the bond amount.
Don’t be discouraged if you have nonstandard credit. At EZ Surety Bonds, we’ve helped applicants with all kinds of credit get bonded. The credit check won’t harm your score, so apply for your free quote today.
The obligee is the entity that requires you to get the bond. In this case, the obligee is the California Department of Motor Vehicles. Their contact information is below:
CA DMV Occupational Licensing Branch
8243 Demetre Ave
Sacramento, CA 95828
Phone: (916) 229 3126
We make applying for bonds as simple and fast as possible. Simply fill out the application for your bond on our website, and you should hear from one of our surety experts within 24 hours regarding your quote.
If you still have questions, please contact us at 1-866-546-4605 or firstname.lastname@example.org. We’re happy to help!
How do I become a vehicle registration service in California?
To operate as an auto registration service in California, you are required to obtain a California Vehicle Registration Service License. One of the steps necessary for obtaining the license is posting the $25,000 Registration Service Bond. Other required steps are:
Make sure you have everything you need for your application by reviewing this checklist.
How much will I pay for my Registration Service Bond?
The California Vehicle Registration Service Bond requires a $25,000 bond amount. The cost of your bond will be based primarily on your credit (via a soft credit check), as well as your business financials and industry experience. Applicants with optimal financials may see quotes starting as low as 1% of the bond amount.
I’ve purchased my California Motor Vehicle Registration Services Bond, now what?
After you purchase your bond with EZ Surety Bonds, we will mail the original document to you. You must file your bond with the obligee; however, some obligees require the original bond, while others will accept an electronic version. Always double-check your obligee’s filing requirements before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.