When people 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 or bonded title, to protect any parties with an ownership stake in the vehicle that might not have been found in the title search.
Jet is 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 Lost Title Bond starts at $100 for a three-year term, but the price depends on the bond limit required. Bond limits over $15,000 require a personal credit check. Other relevant documents, such as a bill of sale, may be needed. The chart below shows different limits and their corresponding rates.
|Bond Limit||Cost (3-year term)|
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. Previous owners or lienholders who still have legal claim to the vehicle will be compensated for damages that may have resulted from the Arizona Department of Transportation (ADOT) 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.
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).
The online application takes just a few minutes. Applicants with a bond limit under $15,000 will be approved for a rate instantly. For those with a limit over $15,000, a credit check and other documentation is required. Once a rate is ready, it will be sent via email to purchase directly online. When the purchase is complete, you will receive an email with your receipt and a copy of the bond for your records.
In order to properly file the Lost Title Bond with ADOT, vehicle owners must obtain all of the following documents and bring them (potentially along with the vehicle itself) to a ADOT location. Documents include:
Vehicle owners should comply with the Arizona Department of Transportation's instructions for obtaining a bonded title and include the physical copy of the bond in their paperwork submission at an MVD location. ADOT's address below is for reference, but a different address may be given to you for filing the bond.
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. Therefore, no refund is applicable.
According to Arizona Revised Statutes Chapter 28-2057, the bond protects previous and future owners from damages (including legal fees) when a new title is issued. As the title holder, the best way to avoid claims is to thoroughly search for the vehicle title and any liens before applying for a title and surety bond to 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 claim's validity, 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 defend you against any false accusations.
If the claim is valid, Jet Insurance Company is obligated to pay for the damages outlined in the bond terms, up to the full bond limit. 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 made on your behalf. ADOT is likely to withhold the title for the vehicle until the bond is restored to its full limit and reinstated.