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

Brief Summary

PennDOT will not issue a salvor certificate of authorization until this $10,000 bond is in place, and the certificate is suspended automatically if the surety withdraws the bond. One bond covers every place of business you run as a salvor, so a second yard does not mean a second bond. Keep it in force through each annual renewal and the certificate stays clean.

Pennsylvania requires a $10,000 bond from every salvor before the Department of Transportation will issue a certificate of authorization to acquire and dispose of abandoned vehicles. The requirement is in 75 Pa.C.S. 7302(c) and 67 Pa. Code 253.3. The bond indemnifies the public and PennDOT against damages caused by the negligence or intentional conduct of the salvor and its employees, and one bond covers all of the salvor's places of business.

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

• Confirm the business is a currently registered vehicle salvage dealer under 75 Pa.C.S. 1337(c)(2), or a registered repair or towing business in a county with no qualified salvage dealer.
• Have the legal business name and the address of every place of business that will operate as a salvor.
• Owner name, home address and Social Security number for the surety's credit review.
• Complete the bond application and review the quote.
• Pay the premium and receive the executed $10,000 bond.
• Submit the bond to PennDOT with the salvor application and a copy of the lease or deed for the place of business.

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

Who needs this bond

A salvor, under 67 Pa. Code 253.2, is a person in the business of acquiring abandoned vehicles to take apart, junk, sell, rebuild or exchange the vehicles or their parts. Under 75 Pa.C.S. 7301(b), no one may operate as a salvor unless PennDOT has authorized it. Certificates of authorization go to currently registered vehicle salvage dealers under section 1337(c)(2) of the Vehicle Code. Where a county has no qualified vehicle salvage dealer, PennDOT may authorize a registered repair or towing business instead under section 7301(a.1). Either way, the bond comes first.

What the bond covers

Section 7302(c) sets the amount at $10,000 and requires the applicant to furnish and maintain the bond before the certificate is issued. The bond indemnifies the public and the Department. The regulation spells out the scope as damages incurred as a result of negligence or intentional conduct by the principal and its employees. You do not need a separate bond for each location, but every place of business must be covered by the one bond.

What happens if the bond goes away

Under 67 Pa. Code 253.3, if the bonding company withdraws the bond or becomes insolvent, the certificate is automatically suspended or terminated until the salvor furnishes a substitute bond in the amount required by law.

Other conditions of the certificate

The regulation also requires an established place of business, at least 5,000 square feet of open or closed space reserved solely for storing abandoned vehicles, and a truck of 1 ton or more designed or adapted to tow or haul abandoned vehicles. The applicant submits a copy of the lease or deed for the place of business. Certificates are issued for one year and are subject to annual renewal, which includes a review of the salvor's status as a vehicle salvage dealer. PennDOT may issue a temporary certificate good for 60 days while it investigates an application.

Before the bond is issued

The application is made on a form PennDOT prescribes. Confirm the current bond form and filing steps with PennDOT before the bond is issued so it matches what the Department will accept.

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

• Bond amount of $10,000 under 75 Pa.C.S. 7302(c).
• Bond indemnifies the public and the Pennsylvania Department of Transportation.
• One bond covering every place of business the salvor operates.
• Continuous coverage. If the surety withdraws the bond or becomes insolvent, the certificate is suspended until a substitute bond is filed.
• At least 5,000 square feet of storage reserved solely for abandoned vehicles, plus a tow truck of 1 ton or more.

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

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