Major Points Of The Claim Process In Auto Dealer Surety Bonds

To avoid confusion we will discuss some of the major points of the claim process in auto dealer surety bonds.

Surety bonds are not the same as an insurance policy.

A surety bond protects the consumer not the business.  The surety bond is an agreement that outlines an obligation of one of the parties, in this case the car dealer, to another, their customer, which is watched carefully by a third party, the surety company.  If there is a claim against the car dealer the surety bond company may need to pay the client based on the claim and then seek reimbursement from the dealership.  A car dealership that is bonded is financially obligated to pay back the surety if a claim is paid on your behalf.  No matter how long the dealership has been in business or how long it has been out of business, if a claim is levied against the dealership and the surety is paid the surety company will seek to get reimbursement on the paid claim from the dealership.

Eight of the most common bond claims that arise from used car dealerships.

–          Failure to account for the sale and/or supply a valid title as stated under the contract

–          Writing a check that does not clear or to not make a payment on a vehicle

–          Tampering with the automobiles odometer

–          Providing inaccurate or false information in regards to the cars past and current condition during the sale

–          Fraudulent activity in regards to the financing of the car

–          Selling vehicles that have been stolen

–          Failing to pay for the warranty that was purchased by the consumer

–          The inability to honor the written car warranty

In our next installment we will finish discussing the major points of the claim process in auto dealer surety bonds.

Construction Bonding Specialists, LLC are dedicated Surety Bond Professionals that are aligned with several Treasury Listed and AMBest Rated Surety markets which allows them to assist with virtually all Bid, Performance and Payment, Financial Guarantee and Supply bond needs.  Find out more information at http://www.bondingspecialist.com.

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