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Dealer dismantler license10/28/2023 While the bond amount for the AL Motor Vehicle Bond is $50,000, that is not what you’ll pay for your bond. Phone: 33 How much does an AL Motor Vehicle Dealer Bond cost? Should you need it, their contact information is as follows:Īlabama Department of Revenue Motor Vehicle Division 2545 Taylor Road Montgomery, AL 36117 The obligee for this motor vehicle bond is the Alabama Department of Revenue Motor Vehicle Division. The principal is financially obligated to reimburse the surety for all claims paid out, plus additional fees and expenses incurred. Please note that surety bonding is not insurance. If the surety company finds the claim valid after a thorough investigation, the surety will compensate the claimant for their losses up to the bond amount. If a principal fails to adhere to their licensing regulations or laws, resulting in injury to an individual (typically a customer), that injured individual (the claimant) can file a claim against the dealer’s bond. The bond is a three-party agreement between the principal (i.e., the vehicle dealer or other business), the obligee (the entity that requires the bond, in this case the Alabama Department of Revenue, see below), and the surety company that writes the bond. The Alabama Motor Vehicle Bond ensures that a licensed motor vehicle dealer, dismantler, manufacturer, title service provider or other licensed motor vehicle business, acts within the terms of their license and state regulations and, in the instance that they do not, offers financial protection to the public. Take the Alabama Motor Vehicle Bond, for example. Most motor vehicle bonds, from dealers and manufacturers to dismantlers and designated agents, work in a similar fashion. Surety bonds ensure the accurate completion of a contract or other obligation according to the terms of that contract/obligation and any applicable laws and regulations. However, a surety bond is not the same as an insurance policy. Understandably, many people don’t fully comprehend the purpose of their bond or mistake it for insurance.
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