Surety Bond Encyclopedia

Motor Vehicle Salvor Service ($10,000) Bond - Statewide in Pennsylvania

Brief Summary

One $10,000 bond, filed on PennDOT Form MV-375, is the financial piece of a Pennsylvania salvor certificate of authorization. It indemnifies the public and PennDOT if the salvor or its employees cause damage through negligence or intentional conduct while handling abandoned vehicles. The surety stands behind the full $10,000 and you pay it a premium.

Pennsylvania requires a $10,000 bond before PennDOT issues a certificate of authorization to act as a salvor of abandoned vehicles under 75 Pa.C.S. 7302(c) and 67 Pa. Code 253.3. Only a registered vehicle salvage dealer can apply. The bond is written in favor of the Commonwealth, filed on Form MV-375 with the MV-951 application, and the certificate renews every year on a cycle ending December 31.

We can help with all Pennsylvania bonds!

How to Apply for a Motor Vehicle Salvor Service ($10,000) Bond:

Hold a current Pennsylvania vehicle salvage dealer registration before applying.
Complete PennDOT Form MV-951, Application for Certificate of Authorization as a Salvor.
Have the surety execute Form MV-375 for $10,000, typed or printed in full, with the original power of attorney attached if an attorney in fact signs.
Attach photographs of the office building, the storage area and the wrecker or towing equipment.
Include a copy of the lease or deed for the place of business.
Renew each year on the cycle ending December 31, with a bond certification completed at renewal.

Detailed Information About the Pennsylvania Motor Vehicle Salvor Service ($10,000) Bond:

The salvor certificate is not the salvage dealer registration

Many yards assume their vehicle salvage dealer registration covers abandoned vehicle work. It does not. 75 Pa.C.S. 7301 says no person shall operate as a salvor unless PennDOT has authorized it, and 67 Pa. Code 253.3 makes registration as a vehicle salvage dealer under 75 Pa.C.S. 1337(c) a condition of applying. The salvor certificate is a second authorization on top of the dealer registration, and it is the one that carries this bond.

Amount and coverage

Section 7302(c) sets the bond at $10,000 and says it indemnifies the public and the department. The regulation describes the coverage as damages incurred as a result of negligence or intentional conduct. The statute also says an individual bond for each place of business is not required, but all places of business must be covered by the bond. Form MV-375 (3-25), the combined PennDOT bond form for manufacturers, dealers, agents, messengers and salvors, prints the salvor amount as $10,000 for each place of business in its instructions. If you run more than one yard, ask the Bureau of Motor Vehicles which reading it applies before the surety writes the bond.

What else the application needs

PennDOT's Salvor Manual, PUB 460, lists Form MV-951, Application for Certificate of Authorization as a Salvor, plus photographs of the office building, the storage area and the wrecker or towing equipment. The regulation adds a copy of the lease or deed for the place of business, a storage area of at least 5,000 square feet reserved solely for abandoned vehicles, and a truck of 1 ton or more designed or adapted to tow them. PennDOT may issue a temporary certificate for 60 days while it investigates.

Renewal

Certificates are issued for one year. PUB 460 puts every salvor on a yearly renewal ending December 31 and requires a bond certification with each renewal. The MV-375 bond is continuous, and the surety must notify the Bureau of Motor Vehicles at least 60 days before cancelling or not renewing it.

Eligibility and Requirements for a Pennsylvania Motor Vehicle Salvor Service ($10,000) Bond:

Bond amount of $10,000 under 75 Pa.C.S. 7302(c), in favor of the Commonwealth of Pennsylvania.
Every place of business covered by the bond.
An established place of business.
Storage area of at least 5,000 square feet reserved solely for abandoned vehicles.
A truck of 1 ton or more designed or adapted to tow abandoned vehicles.

Pennsylvania Motor Vehicle Salvor Service ($10,000) Bond FAQs:

Does my salvage dealer registration cover salvor work?

No. Salvor authorization is a separate PennDOT certificate under 75 Pa.C.S. 7301 and 7302. Being a registered vehicle salvage dealer is a prerequisite for the certificate, not a substitute for it, and the $10,000 bond is tied to the certificate.

I have two yards. Do I need two bonds?

Section 7302(c) says an individual bond for each place of business is not required, as long as the bond covers all of them. The instructions on Form MV-375 list the salvor amount as $10,000 for each place of business, so confirm with the Bureau of Motor Vehicles how it wants a multi-location salvor bonded before the bond is issued.

What does the bond pay for?

It indemnifies the public and PennDOT against damages caused by negligence or intentional conduct of the salvor and its employees. The surety pays valid claims up to $10,000 and then looks to the salvor for repayment.

When does the certificate renew?

Every year. PUB 460 says salvors are on a yearly renewal ending December 31, and a bond certification has to be completed at each renewal.

How is the premium set?

The surety sets it after an underwriting review, usually of the owner's credit and the business's history. The bond amount stays at $10,000 whatever the premium turns out to be.