Alaska Lost Title Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Alaska Lost Title Bond
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: Equal to one and a half times the appraised value of the vehicle
- Who Needs it: All individuals who have lost or never received their vehicle title in Alaska
- Purpose: To ensure the rightful vehicle owner does not suffer financial harm if the title applicant does not actually own the vehicle
- Who Regulates Lost Title Bonds In Alaska: The Alaska Division of Motor Vehicles
Alaska statute 28.10.216 requires all individuals who never received or have lost their vehicle title to purchase a surety bond prior to obtaining their duplicate title. The Alaska legislature enacted the bonding requirement to ensure that the rightful vehicle owner will receive compensation if the title applicant does not actually own the vehicle. The bond amount must be equal to one and a half times the appraised value of the motor vehicle.
What is the Purpose of the Alaska Lost Title Bond?
Alaska requires residents to purchase a surety bond as part of the application process to obtain a duplicate title. The bond ensures that the rightful vehicle owner will not suffer a financial loss if the title applicant is seeking to obtain the title fraudulently. If the title applicant is engaging in fraud, then the rightful vehicle owner can file a claim against the bond and receive compensation up to the full amount of the bond. In short, the bond acts as a safeguard against people attempting to obtain ownership of a vehicle through unethical means.
How Can an Insurance Agent Obtain an Alaska Lost Title Bond?
BondExchange makes obtaining an Alaska Lost Title Bond easy. Simply login to your account and use our keyword search to find the “title” bond in our database. Don’t have a login? Gain access now and let us help you 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 assist you.
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Is a Credit Check Required for the Alaska Lost Title Bond?
Surety companies will not conduct a credit check for bonds that are less than $25,000. At limits over $25,000, surety companies will review the applicant’s credit standing to determine qualification for the bond. For larger bond amounts, applicants with poor credit may be subject to a higher rate. Generally, most carriers want to have an understanding as to how the applicant came to have ownership of the vehicle
How Much Does the Alaska Lost Title Bond Cost?
The Alaska Lost Title Bond costs either $100 or 1.5% of the bond amount, whichever is greater (rates may vary for bonds greater than $25,000).
How is the Bond Amount Determined?
Alaska statute 28.10.26 dictates that the limit on the lost title bond must be equal to one and a half times the vehicle’s appraised value.
What are the Appraisal Requirements?
The Alaska Division of Motor Vehicles dictates that the duplicate title applicants appraise their vehicles in accordance with the following criteria:
- Appraisal must be conducted in Alaska
- Must be for the vehicle’s retail value and submitted on a company letterhead
- Vehicle must be physically inspected by the Appraiser
- Must be a complete vehicle
- Appraisal can’t be over 90 days old
- May be appraised by a licensed motor vehicle dealer, insurance appraiser, or a bank
- Title applicant and the appraiser can’t be the same individual or company
- The vehicle seller and the appraiser can’t be the same individual or company
The appraisal must contain the following items:
- Plate number and state (if available)
- Body style
- Name and address of applicant
- Name, phone number, and address of appraiser
- Description of the interior and exterior of the vehicle such as body damage, missing or damaged components, torn upholstery and/or seats, safety glass damaged and not replaced, etc.
Who is Required to Purchase a Bond?
Alaska requires all individuals applying for a duplicate vehicle title to file a three year, non cancelable, surety bond. However, if the vehicle weighs 500 pounds or less the DMV may not require the title applicant to be bonded. Title applicants for vehicles weighing 500 pounds or less should check with their local DMV to determine if they need to purchase a bond or not.
How do Alaska Residents Apply for a Duplicate Title?
To apply for a duplicate title, Alaska residents must complete the following steps:
Step 1 – Purchase a Surety Bond
Duplicate title applicants must purchase and maintain a surety bond equal to one and a half times the appraised value of the motor vehicle
Step 2 – Have Their Vehicle Inspected
The Alaska Division of Motor Vehicles will not issue a duplicate title unless they have physically inspected the vehicle. To have their vehicle inspected, title applicants need to simply visit their local DMV. See Form 811 for the inspection requirements.
Step 3 – Complete the Affidavit
Alaska requires all duplicate title applicants to complete the Affidavit of Lost, Stolen, or Destroyed Title (Form 809) and submit the affidavit to their local DMV
Step 4 – Pay Fees
Duplicate title applicants must pay a $15 fee prior to receiving their title
What Are the Insurance Requirements for Duplicate Title Applicants in Alaska?
Alaska requires all motor vehicle owners to purchase auto insurance with the following limits:
- $50,000/$100,000 bodily injury
- $25,000 property damage
Duplicate title applicants must purchase and maintain a surety bond equal to one and a half times the appraised value of the motor vehicle.
How Do Alaska Duplicate Title Applicants File Their Bond?
Duplicate title applicants in Alaska should submit the completed bond form, including the power of attorney, to their local DMV. The Alaska Lost Title Surety Bond requires signatures from both the surety company that issues the bond and the duplicate title applicant. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Vehicle information
- Date the bond is signed
How Can Alaska Residents Avoid Claims Against Their Lost Title Bond?
To avoid claims against their bond, duplicate title applicants in Alaska must ensure that they are the rightful owners of the motor vehicle.
What Other Insurance Products Can Agents Offer Duplicate Title Applicants in Alaska?
Alaska requires all motor vehicle owners to purchase auto insurance. Bonds are our only business at BondExchange, so we do not issue other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.