Wyoming Lost Title Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Wyoming Lost Title Bond
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: Twice the vehicle’s value
- Who Needs it: Vehicle title applicants in Wyoming 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 Wyoming: The Wyoming Department of Transportation
Wyoming statute 31-2-105 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 Wyoming 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 must be in an amount equal to twice the vehicle’s retail value.
What is the Purpose of the Wyoming Lost Title Bond?
Wyoming 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 Wyoming Lost Title Surety Bond?
BondExchange makes obtaining a Wyoming 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?
Wyoming statute 31-2-105 dictates that the bond amount must be equal to twice the vehicle’s retail value. To determine the vehicle’s value, bonded title applicants may utilize the Kelly Blue Book, NADA, have their vehicle appraised by a licensed auto dealer, or utilize the vehicle’s past registration statements.
Is a Credit Check Required for the Wyoming 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 Wyoming Lost Title Bond Cost?
The Wyoming 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 Wyoming Department of Transportation requires title applicants to purchase a surety bond if the applicant cannot present the department with a certificate of title that assigns a prior owner’s interest, notarized bill of sale, or other evidence of vehicle ownership. 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 worth less than $2,500.
How do Wyoming Residents Apply for a Bonded Title?
To apply for a bonded title, Wyoming residents must complete the following steps:
Step 1 – Consult the DOT
Bonded title applicants in Wyoming should consult the Department of Transportation prior to purchasing a surety bond. Wyoming 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 DOT’s contact number is (307)777-4883.
Step 2 – Purchase a Surety Bond
After receiving confirmation from the Department of Transportation, bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s retail value.
Step 3 – Have the Vehicle Inspected
Bonded title applicants must have a law enforcement officer conduct a vehicle identification number inspection on their vehicle
Step 4 – Conduct a Title Search
Wyoming requires bonded title applicants to conduct a title search to determine whether the vehicle has active liens against it or has any previous owners listed. To conduct a title search, bonded title applicants should mail the title search application to the following address:
WYDOT, ATTN: Motor Vehicle Services
5300 Bishop Blvd.
Cheyenne, Wyoming 82009-3340
If the vehicle does have active liens against it or if a previous owner is found, the applicant must contact the lienholder/owner to request either a release of lien or ownership.
Step 5 – Apply for a Bonded Title
After completing the above steps, bonded title applicants should visit their local DOT office to apply for a bonded title
How Do Wyoming Bonded Title Applicants File Their Bond?
In Wyoming, bonded title applicants should submit the completed bond form, including the power of attorney, to their local license office. The Wyoming 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 of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Vehicle information
- Bond term
- Date the bond is signed
What Are the Insurance Requirements for Bonded Title Applicants in Wyoming?
Wyoming requires all motor vehicle owners to purchase auto insurance with the following minimum limits:
- $25,000 per person
- $50,000 per accident
- $20,000 property damage per accident
Bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s retail value.
How Can Wyoming Residents Avoid Claims Against Their Lost Title Bond?
To avoid claims against their bond, bonded title applicants in Wyoming must ensure that they are the rightful owners of the motor vehicle.
What Other Insurance Products Can Agents Offer Bonded Title Applicants in Wyoming?
Wyoming 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.