Idaho Lost Title Bond: A Comprehensive Guide
October 19, 2021
This guide provides information for insurance agents to help their customers obtain an Idaho Lost Title Bond
At a Glance:
- Average Cost: Minimum of $100 or 1.5% of the bond amount, whichever is greater
- Bond Amount: One and a half times the vehicle’s appraised value
- Who Needs it: Vehicle title applicants in Idaho who do not have adequate proof of ownership
- 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 Idaho: The Idaho Transportation Department
Idaho statute 39.02.05.301 requires residents who do not have adequate proof that they own their vehicle to purchase a surety bond prior to obtaining a duplicate title. The Idaho 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 will be active for three years from the date of issuance and must be in an amount equal to one and a half times the vehicle’s appraised value.
What is the Purpose of the Idaho Lost Title Bond?
Idaho requires residents to purchase a surety bond as part of the application process to obtain a bonded 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 Idaho Lost Title Surety Bond?
BondExchange makes obtaining an Idaho Lost Title Bond easy. Simply log in to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Idaho statute 39.02.05.301 dictates that the bond amount must be equal to one and a half times the vehicle’s value. To determine the vehicle’s value, bonded title applicants must have their vehicle appraised by a licensed auto dealer.
Is a Credit Check Required for the Idaho 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 understand how the applicant came to have ownership of the vehicle.
How Much Does the Idaho Lost Title Bond Cost?
The Idaho 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).
Who is Required to Purchase a Bond?
The Idaho Transportation Department requires title applicants to purchase a surety bond if the applicant cannot present the department with tangible proof that they own the vehicle and are unable to contact the vehicle’s previous owner. Lost title bonds are typically required for the following reasons:
- The vehicle has never been titled
- The applicant never received the title
- The previous owner never titled the vehicle
- The applicant has the title but there is an error in the title transfer
- The applicant purchased an unclaimed/abandoned vehicle and is not a bonded agent
Bonded titles are not required for vehicles that are ten years old or older.
How do Idaho Residents Apply for a Bonded Title?
To apply for a bonded title, Idaho residents must complete the following steps:
Step 1 – Consult the DOT
Bonded title applicants in Idaho should consult the Transportation Department prior to purchasing a surety bond. Idaho does not require all title applicants to obtain a bonded title, and usually only does so as an absolute last resort. Title applicants should ensure that they actually need a bond before purchasing one. The Transportation Department’s phone number is (208) 334-8000.
Step 2 – Notify Owners and Lienholders
After the applicant has contacted them, the DOT will prepare a Vehicle Record Report to obtain the vehicle’s most recent title record information. The applicant must order this report and then proceed to contact all vehicle owners and lienholders via certified mail and inform them of the applicant’s intent to title the vehicle in Idaho. If not owner or lienholder objects, the applicant may proceed with the next steps.
Step 3 – Have the Vehicle Appraised
Bonded title applicants must obtain a vehicle appraisal and VIN inspection from a licensed auto dealer
Step 4 – Purchase a Surety Bond
After their vehicle has been appraised, bonded title applicants must purchase and maintain a surety bond in an amount equal to one and a half times the vehicle’s appraised value
Step 5 – Complete the Application
All Idaho bonded title applications should be submitted in person to the applicant’s local DMV office. Bonded title applicants must complete the application in its entirety, and submit the following items:
- Vehicle Record (obtained in Step 2)
- Vehicle appraisal and VIN inspection form
- Indemnifying affidavit
- Surety bond
- Certified mail receipts and copies of documents send to the vehicle’s owners and lienholders
- Lien releases (if applicable)
- 6% sales/use tax
- Title fee
- Proof of ownership (bill of sale, invoices, etc.)
How Do Idaho Bonded Title Applicants File Their Bond?
In Idaho, bonded title applicants should submit the completed bond form, including the power of attorney, to their local DMV office. The Idaho Lost Title Surety Bond requires signatures from both the surety company that issues the bond and the bonded title applicant. The surety company should include the following information on the bond form:
- The legal name and address entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Vehicle information
- Date the bond is signed
What Are the Insurance Requirements for Bonded Title Applicants in Idaho?
Idaho requires all motor vehicle owners to purchase auto insurance with the following minimum limits:
- $25,000 per person
- $50,000 per accident
- $15,000 property damage per accident
After their vehicle has been appraised, bonded title applicants must purchase and maintain a surety bond in an amount equal to one and a half times the vehicle’s appraised value.
How Can Idaho Residents Avoid Claims Against Their Lost Title Bond?
To avoid claims against their bond, bonded title applicants in Idaho must ensure that they are the rightful owners of the motor vehicle.
What Other Insurance Products Can Agents Offer Bonded Title Applicants in Idaho?
Idaho 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.