If you are trying to register a vehicle for which you don�t have a valid title, you may be able to do so by obtaining a bonded title from the Iowa Department of Transportation. The same process applies whether you never received a title when you acquired a vehicle, received a defective title, or received a title but lost it before transferring it into your name.
Learn everything you need to know about the Iowa bonded title process below, and contact Single Source Insurance to get the bond you need today.
What Is a Bonded Title?
A bonded title protects the state and anyone who might later show up and be able to prove a valid ownership interest in the vehicle. The bond is your guarantee that you are the legitimate owner and will cover any financial loss suffered by another party if that turns out not to be true.
Who Needs a Bonded Title?
Anyone who lacks a proper title and is attempting to retitle or register a vehicle in their name needs a bonded title. This requires the purchase of an Iowa title bond.
How Does the Process Work?
The Iowa bonded title process is essentially the same regardless of the reason why you don�t have a valid title. You�ll need to follow these steps:
- Complete and sign an Application for Registration and Bonded Certificate of Title for a Vehicle.
- Attach any documentation you have to support your ownership claim, such as a Bill of Sale, receipt, or cancelled check for the purchase.
- Submit the completed application and proof of ownership to the Iowa DOT�s Office of Vehicle & Motor Carrier Services, P.O. Box 9278, Des Moines, IA, 50306.
- The DOT will do a title record search and notify any owner on record with instructions to claim the vehicle or waive any further claim on it within 10 days of the date of mailing. If a waiver is received or there is no response, the DOT will continue processing the bonded title application.
- The DOT will appraise the vehicle and send you a bond form stating the vehicle�s value and the required title bond amount (1 � times the vehicle�s appraised value).
- Once you�ve purchased a three-year title surety bond, send the bond receipt and a letter authorizing the county treasurer to issue a bonded title to the DOT’s Bureau of Investigations and Identity Protection. You will be contacted by an investigator to verify the information you provided with your application.
- When you receive an authorization letter from DOT, you�ll need to take it to your county treasurer�s office within 30 days to apply for the title certificate, pay the fees and any taxes due, and register the vehicle.
The three-year term of the surety bond gives anyone with an ownership interest in the vehicle three years to file a claim for compensation. If there are no claims on the bond within that time, you will be issued an unbonded title.
If a claim is filed, the surety company will attempt to negotiate a settlement if they determine that the claim is valid. If no settlement is agreed upon, the surety company will pay the claim on your behalf, but you are legally obligated to reimburse the surety for that amount.
Understanding the Costs of Obtaining a Bonded Title in Iowa
Surety bond premiums are calculated as a small percentage of the required bond amount. At Single Source Insurance, all Iowa bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.
Get A Quote
Our experts at Single Source Insurance will work with you to get you the best possible rate on the title bond you need. Contact us today.