Arizona Motor Vehicle Recycler or Dismantler Bond

Arizona Motor Vehicle Recycler Bond

For the 170 motor vehicle recyclers and dismantlers established in Arizona, there is a $20,000 Auto Recycler Bond requirement. The bond is a guarantee from Jet Insurance Company to the State of Arizona Department of Transportation (ADOT) that should the recycler fail in the transferring of title or payment of fees, Jet will provide compensation to the injured party.

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With Jet, you can expect the lowest prices instantly online. We cut out middlemen brokers and agents offering the bond directly to you, our customer.

What Is the Lowest Price for the Auto Recycler Bond?

With Jet, you can purchase the Auto Recycler Bond starting at $16 a month or $160 annually. Below you can see our preferred price tier for several various term options.

Bond TermCost
Monthly$16
1 Year$160
2 Years$280
3 Years$400
Arizona Auto Recycler or Dismantler Bond Prices

The bond cost is based on the owner of the dismantling service’s personal credit score. The Jet team wastes no time on getting you the rate quickly; it is all online through our streamlined application.

Why Is the Motor Vehicle Recycler Bond Required?

Unclear vehicle ownership can create a mystery worthy of Sherlock Holmes’ attention. Should the auto recycler start to dismantle the vehicle, while another party makes a claim of ownership and does not want the vehicle dismantled, then an issue has arisen and damages can be claimed. The vehicle recycler can either have clearance from the ADOT, or will have to rectify the claim for the damages. If the dismantler refuses to fix the problem, then the surety bond guarantees the surety company (Jet) will provide compensation.

The Arizona State Legislature put the bonding requirement into law as a tool to protect the public from damages created surrounding the dismantling of vehicles. While the bond is a last resort, it does provide Arizona legislators the warm fuzzy that they are protecting the public, and with money paid from a neutral third party (Jet) rather than from government coffers. The ADOT enforces the law and is tasked with the management of the motor vehicle recycler licensing and bonding.

How Does the Application Process Work With Jet for the Auto Recycler Bond?

The application and purchase of the bond is done online or over the phone in moments. Jet does need the owner of the dismantler business to apply with their social security number, so we can perform a quick credit check. It is a soft check, takes a moment, and will not affect your credit score.

The bond will be available to purchase online with options to pay for it monthly or on an annual term of your choosing. Following the purchase, you will receive a copy of the bond and receipt.

How Does the Auto Recycler Bond Get Filed to the Department of Transportation?

Jet will supply the completed bond to the Arizona Department of Transportation Motor Vehicle Division Licensing Unit for you. We are not slowed down by forwarding the bond to you, just to have you send the bond form to the ADOT. Jet will always send you a bond copy though for your records.

However, upon your request we will send you the signed and sealed bond form. For example, you are applying for a new recycler license and want to send the bond form with the application documents. Just let us know during checkout and we will get the bond to you. The bond form needs to be sent to the following address:

State of Arizona Department of Transportation
Motor Vehicle Division Dealer Licensing Unit
Mail Stop MD 552M
PO Box 2100
Phoenix, AZ 85001-2100

Can I Cancel My Auto Recycler Bond and Get a Refund?

With Jet, this is possible. Just email us at bonddept@jetsurety.com or mail us your request to cancel your bond. Jet will file the notice of the bond cancellation to the ADOT.

The ADOT does not cancel that bond immediately upon receipt of the notice. The bond remains active for another 60 days.

Jet does have to factor that period of time into our refund amount as the bond is still active, and will send back any prorated amount left to you. For monthly paying customers, we will still need to take out the potential last two payments as the bond is active during this period of time.

Do I Need to Renew My Auto Recycler Bond?

With Jet, you don’t if you get on our monthly payment plan. The bond stays active so long as payments continue to come through to us.

For our annual paying customers, whether they purchased 1, 2, or 3 year terms, Jet will send you a renewal notice well prior to the bond’s expiration date. Simply provide Jet payment and you are done. 

The bond is continuous until actively cancelled by Jet, meaning, so long as Jet receives premium for the bond it will stay active.

How Does an Auto Recycler Avoid Bond Claims?

Chapter 7, Article 3, 28-2094 of the Arizona Revised Statutes is the best place to reference the regulations surrounding an auto recycler that can get them into trouble in regards to the surety bond requirement. Prior to dismantling a vehicle, the auto recycler must obtain a dismantle certificate from the ADOT. This will require proof of vehicle title, registration card and license plate. There is a $4 fee we should mention, but that can’t even buy a good burger now-a-days. Having all the proper paperwork is one thing, but a clean title is just as important. The auto recycler must make sure the vehicle is free of any liens.

The dismantler must report to the ADOT if the registration card or license plate cannot be obtained. Under penalty of perjury, they can still get the dismantle certificate and begin work on the vehicle.

Just don’t start cranking on that car just yet. The ADOT requires 3 days from the delivering of all documentation (5 days if mailed in) before dismantling can begin. The ADOT wants a couple of days to see if a lien or ownership dispute comes through before the car comes apart. 

If you dismantle the vehicle and someone can make a claim to it, then you have just destroyed their property. If the ADOT is notified, completes an investigation, and you cannot present viable proof of ownership transfer, then you will have to reimburse the injured party (or re-‘mantle’ that vehicle quickly).

The Auto Recycler Bond will cover mispaid fees to the ADOT, but this in no means is a way to have fees paid for. Not paying licensing fees or damaging the public, as described above, to the point where the surety bond is tapped for payment is a one way ticket to a suspended license.

What Happens If I Get an Auto Recycler Bond Claim?

Should you get a claim on your license bond, Jet will defend you. We will need any record you have regarding the case. This may be difficult if you have already provided the evidence to the ADOT, but even then, Jet’s professionals will work against any bureaucratic obtuseness

Should the bond claim be valid, Jet will fulfill its obligation as a surety company and make payment to the injured party. Unlike insurance, the story doesn’t end there. The surety bond acts as a guarantee of payment and does not absolve responsibility for the damages caused. The auto recycler will need to pay Jet back in the amount of the claim. Failure to do will result in cancellation of the required bond and may carry other negative consequences to the license.

Are There Other Bonds That an Auto Recycler Might Need?

If the auto recycler happens to also sell more than seven vehicles a year, then they will need to get a license with the ADOT to do so, and that will require a motor vehicle surety bond that is offered by Jet.

Arizona Motor Vehicle Recycler Bond Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: