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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
If you own a car or truck in Iowa but the paperwork is missing, incomplete or wrong, this bond is how you get a title in your name. Iowa DOT sets the value, you post a bond for one and one-half times that figure, and the bond simply sits in the background for three years before it expires on its own.
Iowa issues a bonded certificate of title when a vehicle cannot be titled or registered because the owner lacks proper ownership documents. Under Iowa Code 321.24, the applicant files a surety bond equal to one and one-half times the current value of the vehicle as determined by Iowa DOT. The surety must be licensed to do business in Iowa. The bond runs for three years and then expires. No bond is needed when the vehicle is valued at $1,000 or less and is at least 12 model years old.
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Many Iowa owners buy a bond they do not need. Iowa DOT does not require a bond certificate when the vehicle it has valued is worth $1,000 or less and is 12 model years old or older. If your vehicle meets both conditions, the bonded title application goes through without a bond.
There is no flat bond amount. Iowa DOT's Office of Vehicle and Motor Carrier Services determines the current value of the vehicle, and Iowa Code 321.24 requires a bond equal to one and one-half times that value. A vehicle valued at $8,000, for example, calls for a $12,000 bond. Wait for the DOT value before you order the bond so the amount on the form matches.
The bond indemnifies any prior owner or secured party, and any later buyer or lender who takes an interest in the vehicle, against expense, loss or damage, including reasonable attorney fees, if someone with a better claim to the vehicle turns up. You are the principal. The surety pays a valid claim and then looks to you for repayment.
You submit the Application for Registration and Bonded Certificate of Title online to Iowa DOT, uploading any ownership documents you received when you acquired the vehicle and photographs of the front and side of the vehicle, the public VIN plate and the manufacturer's federal safety label. Iowa DOT may ask you to bring the vehicle in for inspection by an investigator. Once DOT sets the value, you obtain the bond from a surety licensed in Iowa and return the completed bond documents to the same office. A cash deposit is also accepted and is held for three years without interest.
The bond, and any deposit with it, is returned at the end of three years. It can end sooner if the vehicle is no longer registered in Iowa and the current title is surrendered to the department, unless DOT has been notified of a pending action to recover on the bond.
A vehicle that has been issued a junking certificate cannot be brought back through the bonding procedure unless it is 25 years old or older.
One and one-half times the current value of the vehicle as determined by Iowa DOT. There is no single fixed amount, so get the DOT value before you buy the bond.
No. If Iowa DOT values the vehicle at $1,000 or less and it is 12 model years old or older, no bond certificate is required.
Three years. After that the bond expires and no bond is required. It can be released earlier if the vehicle leaves Iowa registration and the title is surrendered, as long as no claim is pending.
Yes. Iowa DOT accepts a cash bond and holds it for three years on a noninterest-bearing basis.
Iowa DOT notes that fees for a surety bond are set by the bonding company. The premium depends on the bond amount, which follows the vehicle value, and on the surety's review of the applicant.
Only if the vehicle is 25 years old or older. Otherwise a junked vehicle cannot be reinstated through the bonding procedure.
This website is a referral and marketing platform that connects users with licensed insurance agents. We do not issue surety bonds directly except in states where we are licensed. All bond applications are processed and fulfilled by licensed agents. By using this site, you agree to our Terms & Conditions, Privacy Policy, and the use of cookies. If you do not agree, please exit the site.
