Do Dealerships Register Cars For You In Nebraska

This guide provides information for insurance agents to help new and pre-owned auto dealership owners on Nebraska Auto Dealer bonds

At a Glance:

Average Cost: 0.v% – 9% of the bond limit per twelvemonth, based on the business possessor's credit
Bond Amount:
- $100,000 for auction dealers
- $l,000 for a motor vehicle, trailer, wholesale or motorbike dealers
Who Needs It: All individuals or business entities who sell or deal in motor vehicles either directly or indirectly
Purpose: To ensure the public will receive compensation for whatsoever amercement should the motorcar dealer fail to comply with dealer licensing law
Who Regulates Dealers in Nebraska: The Nebraska Motor Vehicle Industry Licensing Board (MVILB)

Background

Nebraska Revised Statute threescore-1406 mandates auto dealers operating in the state to obtain a motor vehicle dealer license with the MVILB. The Nebraska legislature enacted the license and regulations to ensure that dealers engage in upstanding concern practices and remit required taxes and fees. In society to provide financial security for the enforcement of the license law, dealers must purchase and maintain either a $50,000 or $100,000 motor vehicle dealer surety bond to be eligible for licensure.

What is the Purpose of the Nebraska Auto Dealer Bond?

Nebraska requires dealers to buy the Motor Vehicle Dealer Bail equally part of the awarding process for the Motor Vehicle Dealer License. The bond ensures that the public volition receive compensation for financial harm if the car dealer fails to comply with the licensing regulations and that the dealer will pay all required taxes and fees to the State of Nebraska. In short, the bail is a type of insurance that protects the public if the dealer breaks licensing laws.

nebraska auto dealer bond

How Can an Insurance Agent Obtain a Nebraska Auto Dealer Bond?

BondExchange makes obtaining a Nebraska Auto Dealer Bond easy. Only login to your account and use our keyword search to observe the "auto dealer" bail in our database. Don't have a login? Enroll now and permit us help y'all satisfy your customers' needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assistance you.

At BondExchange, our 40 years of feel, leading technology, and access to markets ensure that we have the noesis and resource to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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How Much Does the Nebraska Auto Dealer Bond Cost?

The $50,000 Nebraska Motor Vehicle Dealer surety bail can toll anywhere between $250 to $4,500 per year. Insurance companies decide the rate based on a number of factors including your customer's credit score and experience. We likewise offer like shooting fish in a barrel interest-free financing for premiums over $500. The chart beneath offers a quick reference for the guess bond price on the $50,000 bond requirement.

$50,000 Nebraska Auto Dealer Bond Price

Credit Score*	Bond Cost (1 yr)
700+	$250
660 – 699	$375
649 – 659	$475
629 – 648	$525
619 – 628	$750
600 – 618	$1,000
580 – 599	$2,000
550 – 579	$iii,500
500 – 549	$4,500

*The credit score ranges practise not include other factors that may event in a modify to the annual premium offered to your customers, including but non limited to, years of experience and underlying credit factors contained within the business owner's credit written report.

How Does Nebraska Define "Motor Vehicle Dealer"?

Nebraska Revised Statute lx-1406 considers any person or business concern entity who buys, sells, or deals in motor vehicles either straight or indirectly to be a motor vehicle dealer.

How Exercise Auto Dealers Apply for a License in Nebraska?

Dealers in Nebraska must navigate several steps to secure their motor vehicle dealer license. Below are the full general guidelines, only dealers should refer to the Dealer Application Instructions canvas for details on the procedure.

License Flow – The Nebraska Dealer License expires on Dec 31st of each year regardless of the date of issuance and must be renewed before the expiration date.

Footstep 1 – Determine the License Blazon

Nebraska requires dealers to obtain specific licenses corresponding to the nature in which the dealer's business operates. Keep in mind that dealers volition demand to acquire a license for each type of business they wish to operate. Beneath are the unlike types of the Nebraska Dealer License.

- Dealer
  - Combination Motor Vehicle/Trailer Dealer – Authorized to sell new or used motor vehicles, trailers, and motorcycles
  - Trailer Dealer – Sells new or used trailers only
  - Motorbike Dealer – Sells new or used motorcycles only
- Auction – Sells motor vehicles at an auction
- Wreckage/Salve – Dismantles motor vehicles and sells the parts
- Manufacturer/Distributor/Branch – Manufacturers or distributes new motor vehicles
- Finance Company – Sells repossessed motor vehicles or trailers

Step 2 – Establish a Location

Before dealers can obtain their dealer document they must get-go buy or charter a permanent business location. The location must run across the following requirements:

- Part in either a building or motorhome that has infinite to shop all business records
- Brandish space big for at least 10 motor vehicles
- Landline telephone with the phone number registered in the business's proper name
- Open up a minimum of xl hours per calendar week, with at least 20 of those hours betwixt viii am and 5 pm
- Posted business organisation hours
- Have a service facility or a service facility understanding with a service facility located in the dealer'due south canton

Stride iii – Erect a Sign

Dealers must erect a permanently affixed sign at their business location. The sign must brandish the business name in letters at least 8 inches high and be visible from the nearest public roadway.

Step 4 – Obtain Zoning Approval

Dealers must obtain written approving from the local zoning dominance certifying that the dealer's business location is in compliance with all applicative zoning regulations.

Step 5 – Purchase Insurance

Dealers are required to obtain liability insurance and submit a Certificate of Insurance with their awarding. The minimum required limits are:

- $25,000 per person
- $50,000 per accident
- $25,000 holding damage

Trailer-only dealers are exempt from this requirement.

Pace 6 – Complete the Application

All new dealer regulatory license applications and dealer regulatory license renewal applications should be mailed to:

Nebraska Motor Vehicle Manufacture Licensing Lath
301 Centennial Mall South
P.O. Box 94697
Lincoln, NE68509

Dealers tin can access the Dealer License application here. The following information should be included with the awarding:

- 6.a Pictures – Dealers must submit photographs of their concern location and sign with their awarding
- half-dozen.b Lease – Dealers who lease their business concern location must submit a copy of their lease understanding with their application. The lease agreement cannot expire earlier Dec 31 of the current twelvemonth.
- 6.c Service Understanding – Dealers who do not have a service facility at their business concern location must submit a Service Agreement with their application
- 6.d Worker'south Compensation – All Nebraska businesses with employees must obtain worker'southward bounty insurance and submit proof of insurance with their application. Dealers who do non have any employees tin submit a Worker'due south Compensation Waiver with their application.
- 6.e Franchise Agreement – Dealers who sell new motor vehicles must submit a franchise agreement with their awarding that grants them express permission from a manufacturer to sell each make and model of a new motor vehicle
- 6.f Concern Registration – Dealers must register their business organization with the Nebraska Secretary of Country which they can do hither.
- half dozen.g Salesperson License – All dealerships must have at to the lowest degree i licensed salesperson. Dealers should submit a Salesperson Awarding with their dealer application. There is no application fee for the Salesperson License

Stride seven – Pass Inspection

Afterward the dealer has submitted their application, an investigator from the MVILB will contact the dealer to schedule an inspection of the dealer'south business location. If the dealer passes inspection the investigator will issue the dealer an inspection report besides as their initial application which must be mailed again to:

Nebraska Motor Vehicle Industry Licensing Board
301 Centennial Mall South
P.O. Box 94697
Lincoln, NE68509

Step 8 – Pay Fees

The following fees must exist paid when applying for or renewing a dealer license in Nebraska:

- $400 Dealer License, Auction License and Finance Company License application fee
- $200 Wrecker/Save Dealer License application fee
- $600 Manufacturer/Distributor License application fee
- $200 Factory Branch License Application fee

Step 9 – Obtain Dealer Plates

After the dealer has received their application, they tin purchase dealer plates from their local canton treasurer.

Pace 10 – Purchase a Surety Bail

Dealers must purchase and maintain either a $l,000 for a motor vehicle, trailer, wholesale, or motorcycle dealers, or $100,000 for auction dealers. The bond should run concurrently with the license and expire on Dec 31st of each year.

How Exercise Nebraska Auto Dealers Renew Their License?

The Nebraska Dealer License expires on December 31 of each yr regardless of the date of issuance and must be renewed before the expiration date. Dealers should receive a renewal discover prior to the expiration date containing the renewal application and instructions. Dealers should mail their renewal awarding along with their original surety bond to the following address:

Nebraska Motor Vehicle Industry Licensing Board
301 Centennial Mall South
P.O. Box 94697
Lincoln, NE68509

What Are the Insurance Requirements for the Nebraska Motorcar Dealer License?

The State of Nebraska requires dealers to obtain liability insurance with minimum limits of 25/50/25. Dealers with employees are likewise required to obtain worker'southward compensation insurance.

How Do Nebraska Auto Dealers File Their Bail?

Dealers should post the completed bond form, including the ability of attorney, to the following address:

Nebraska Motor Vehicle Industry Licensing Board
301 Centennial Mall Southward
P.O. Box 94697
Lincoln, NE68509

Both the $100,000 and $50,000 surety bonds crave signatures from both the surety company that issues the bond and the auto dealer. The bond form will require the post-obit items:

Legal name and location of entity/private(s) buying the bond
Surety company's proper noun and state they are located in
Engagement bond will expire
Date the bail is signed and sealed
Notary signature for the chief

How Tin Nebraska Auto Dealers Avoid Bond Claims?

To avoid claims on the Motor Vehicle Dealer Bail, dealers must follow all dealer regulations in the state, including some of the most of import issues below that, tend to cause claims:

Practise not engage, or permit representatives of the business to engage, in any acts of fraud
Pay sellers of vehicles promptly and in full
Transfer all vehicle titles when sold
Do non substitute motor vehicles or trailers later on a sale has been fabricated
Pay all lien and security interests
Pay taxes on time and in full. Dealers should consider setting aside revenue enhancement obligations as they accumulate.
Do not appoint in whatever illegal selling practices

What Other Insurance Products Can Agents Offer Dealers in Nebraska?

Nebraska requires dealers to obtain liability insurance. All dealers with employees must obtain worker'south compensation insurance. Nearly reputable dealers should as well obtain garage keeper'south liability. Bonds are our only business at BondExchange, so we do non consequence any course of liability insurance, but our agents often utilise brokers for this specific line of business. A list of brokers in this infinite can be institute here.

How Can Insurance Agents Prospect for Nebraska Auto Dealer Customers?

Nebraska conveniently provides a public database to search for active motor vehicle dealers in the state. The database can be accessed on the Nebraska NVILB site here. Contact BondExchange for additional marketing resources. Agents tin likewise leverage our print-mail relationships for discounted mailing services.

What Other States Require Auto Dealer Bonds?

All 50 states and the District of Columbia crave auto dealers to obtain an Motorcar Dealer Bond as a prerequisite for licensure. Insurance agents should utilise our Chief MVD Page for a detailed analysis of the Car Dealer Bail requirements nationwide.