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Iowa Code Chapter 321 Section 24 requires individuals to file a surety bond for vehicle registration if they have unsatisfactory ownership proof. The Iowa title bond protects any prior owner or future owner from expenses, losses, or damages resulting from certificate of title issuance. If the original vehicle title is found and a valid claim is made on the bond, the surety company will pay harmed parties up to the full bond amount. The bonded vehicle owner must then reimburse the surety company..
Common reasons for unsatisfactory proof of ownership include:
Iowa certificate of title bond costs start at $100. The exact cost will vary depending on the surety bond amount required by the Iowa Department of Transportation.
The Iowa 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).
You can purchase an Iowa certificate title bond online 24/7. You must provide the following information for Department of Transportation approval.
Once your payment is processed, your official bond documents will be delivered to your email instantly.
Iowa 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.
The Iowa Department of Transportation will require a title applicant to purchase a surety bond if the applicant cannot present the department with adequate proof that the applicant does in fact own the vehicle. Typically, lost title bonds are required for the following reasons:
The Iowa Department of Transportation Motor Vehicle Division regulates vehicle registration, including requirements, for vehicles with lost, stolen, or missing titles. Your lost title surety bond must be submitted to the Iowa DOT within 30 days.
Iowa title bonds are used to register vehicles. If you plan to sell vehicles, a separate Iowa motor vehicle dealer bond is required.
Iowa statute 321.24 dictates that the bond amount must be equal to one and a half times the vehicle’s current value. The Department of Transportation will determine the vehicle’s value during the title application process.
We do not conduct a credit check for bonds that are less than $25,000. At limits over $25,000, we will review your standing to determine the qualification and rates for the bond.
If the Iowa Department of Transportation requires your surety bond documentation to be updated for any reason, contact your surety provider.
The most common changes for these bonds include updating the:
Your Iowa title bond expires 3 years from its effective date and does not renew. At that time the Iowa Department of Transportation may return the bond if the vehicle is no longer registered in the state and evidence of the original certificate is provided.
Review the Bonded Certificate of Title information on the Iowa Department of Transportation website and follow the steps listed below.
In Iowa, bonded title applicants should mail the completed bond form, including the power of attorney, to the following address:
Iowa Department of Transportation
Office of Vehicle and Motor Carrier Services
Des Moines, Iowa 50306
The Iowa Lost Title Surety Bond requires signatures from both the surety company that issues the bond and the bonded title applicant. The Department of Transportation will provide the title applicant with a bond form after they have received the title application.
Iowa requires all motor vehicle owners to purchase auto insurance with the following minimum limits:
Bonded title applicants must purchase and maintain a surety bond in an amount equal to one and a half times the vehicle’s current retail value.
To avoid claims against their bond, bonded title applicants in Iowa must ensure that they are the rightful owners of the motor vehicle.