When automobile owners in Arizona are unable to prove ownership of a vehicle in their possession, the Motor Vehicle Division allows them to file for a transfer of title to their name by means of a surety bond. Jet Insurance Company offers the Lost Certificate of Title Bond (also known as a Lost Title Bond) to protect any parties with an ownership stake in the vehicle who might not have been found in the title search.
At Jet, we are taking on the bonding process to get it running lean. We are the direct carrier for the bond, taking out the middlemen who slow down the application process, cost you more in fees and commissions, and leave you on the side of the road if you receive a bond claim.
The cost of the Lost Title Bond starts at $225 but can change depending on the required bond limit. Bonds that have a limit of $15,000 or less have a flat rate of $225 for the three-year term. A bond limit greater than $15,000 will require a personal credit check and relevant documents, such as a bill of sale, to receive a quote.
|Bond Limit||Cost (3-year term)|
|Equal or less than $15,000||$225|
|More than $15,000||Varies|
Jet Insurance Company is able to offer low prices because we are a direct surety carrier, which means we are able to avoid paying third-party fees and commissions that may be added by a middleman.
The Lost Title Bond has a limit that is 1.5 times the fair market value of the vehicle, as determined by the Arizona Motor Vehicle Division. The limit should be enough to repay any previous or future owner from expenses (including attorney fees) or damages if this bond was issued incorrectly.
Per the Arizona Revised Statutes Chapter 28-2057, the Lost Title Bond serves to protect any prior and future owners of the vehicle from damages that might occur from undisclosed ownership interests that come to light. Previous owners or lienholders who still have legal claim to the vehicle will be compensated for damages that may have resulted from the MVD conferring title. Future owners who purchase the vehicle with a Lost Title Bond in place are protected against finding residual, undiscovered ownership of the vehicle post-sale. Once the bond is posted, it is active for three years and cannot be cancelled.
For example, imagine a vehicle is given as a gift between family members or friends, but the physical title certificate or any other proof of ownership cannot be found. Arizona MVD’s bonded title process helps the receiver establish proper ownership of the vehicle by conducting a title and lien search, and then reaching out via certified mail to any interested parties in the vehicle’s past. If no ownership interest is claimed, ownership can be transferred to the receiver (provided all taxes are paid).
When you buy the Lost Title Bond with Jet, the online application for bonds up to $15,000 takes just a few minutes . For bondts over $15,000, we will need to ask for some additional paperwork (such as the bill of sale for the vehicle) and run a credit check. After a quick review, a Jet team member will get back to you with your bond quote and a link to purchase instantly. Once your purchase is complete, you will receive an email with a copy of the bond for your records and a receipt.
In order to properly file the Lost Title Bond with the Arizona MVD, vehicle owners must obtain all of the following documents and bring them (potentially along with the vehicle itself) to a MVD location. This will include:
It is recommended that vehicle owners comply with the MVD’s instructions for obtaining a bonded title and include the physical copy of the bond in their paperwork submission at an MVD location. The State's DOT address below is for reference and not specifically where the bond form should be sent.
State of Arizona Department of Transportation
Motor Vehicle Division
P.O. Box 2100, MD 555M
Phoenix, AZ 85001-2100
The Arizona Lost Title Bond is required to remain active for three years after it is posted and cannot be cancelled by the vehicle owner or Jet for any reason.
According to Arizona Revised Statutes Chapter 28-2057, the bond protects previous and future owners from damages (including legal fees) that might be the result of the newly issued title. As the title holder, the best way to avoid claims is to make a thorough search of the title and liens of the vehicle when applying for its title. This will reduce the risk that a previous owner or lienholder will come looking to claim ownership.
If you receive a claim against your bond, Jet will begin an investigation within ten days to determine the validity of the claim, per the Arizona Administrative Code R20-6-801. To aid in this effort, we will need your honest communication, providing any documentation proving ownership of the vehicle. Jet will aid in defending you against the claim as much as possible.
If the claim is valid, Jet Insurance Company is obligated to pay for the damages outlined in the terms of the bond, up to the full amount. In this case, consider Jet as a financial guarantor, standing in for you in case of claims. You are responsible for the actions that resulted in the claim, and must reimburse Jet for the payment to settle the claim. The Arizona MVD is likely to withhold the title for the vehicle until the bond is restored to its full limit and reinstated.