Utah Lost Title Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Utah Lost Title Bond
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: Twice the vehicle’s fair market value
- Who Needs it: Vehicle title applicants in Utah 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 Utah: The Utah Division of Motor Vehicles
The Utah Tax Commission 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 State of Utah 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 twice the vehicle’s fair market value.
What is the Purpose of the Utah Lost Title Bond?
Utah 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 a Utah Lost Title Bond?
BondExchange makes obtaining a Utah Lost Title Bond easy. Simply log in 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 at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
The Utah Division of Motor Vehicles dictates that the bond amount must be equal to twice the vehicle’s fair market value. The DMV will determine the bond amount during the title application process.
Is a Credit Check Required for the Utah 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 Utah Lost Title Bond Cost?
The Utah 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 Utah Tax Commission 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
Vehicles with a fair market value of less than $1,000 are ineligible for a bonded title.
How do Utah Residents Apply for a Bonded Title?
To apply for a bonded title, Utah residents must complete the following steps:
Step 1 – Contact the DMV
Bonded title applicants in Utah should contact their local DMV office prior to purchasing a surety bond. Utah 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. If the DMV determines the applicant needs a bonded title, they will assist the applicant in determining the bond amount.
Step 2 – Purchase a Surety Bond
Once the DMV determines the applicant needs a bonded title, the applicant must purchase and maintain a surety bond in an amount equal to twice the vehicle’s fair market value.
Step 3 – Have the Vehicle Inspected
Bonded title applicants whose vehicles have never been registered in Utah must have their vehicle inspected by either a designated DMV employee or a Utah law enforcement officer. The inspector must sign a certificate of inspection and return it to the applicant.
Step 4 – Complete the Application
Bonded title applicants should submit their completed title applications to their local DMV office. Applicants must complete the application in its entirety, and submit the following items:
How Do Utah Bonded Title Applicants File Their Bond?
In Utah, bonded title applicants should submit the completed bond form, including the power of attorney, to their local DMV office. The Utah 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 location entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Vehicle information
- Date the bond is signed
What Are the Insurance Requirements for Bonded Title Applicants in Utah?
Utah requires all motor vehicle owners to purchase auto insurance with the following minimum limits:
- $25,000 per person
- $65,000 per accident
- $15,000 property damage per accident
Bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s fair market value.
How Can Utah Residents Avoid Claims Against Their Lost Title Bond?
To avoid claims against their bond, bonded title applicants in Utah must ensure that they are the rightful owners of the motor vehicle.
What Other Insurance Products Can Agents Offer Bonded Title Applicants in Utah?
Utah 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.