Oregon Motor Vehicle Dismantler Bond

Oregon Motor Vehicle Dismantler Bond

As of May 1, 2020, a $100,000 surety bond is required by the Oregon Department of Transportation (ODOT), Driver & Motor Vehicles Services (DMV) in order for motor vehicle dismantlers to get and maintain a license, commonly known as a Dismantler Certificate. This surety bond requirement replaces the previous bond limit of $10,000.


Anyone starting a business that buys, sells, or processes vehicles for the purpose of salvaging, dismantling, or destroying, will need a dismantler certificate. If you are already one of the 181 active businesses that operates in the State of Oregon, you are required to maintain a Vehicle Dismantler Certificate and surety bond.

Oregon Dismantler Bond Pricing

At Jet Insurance Company, pricing for the $100,000 Dismantler Bond starts at $63 per month, or $626 annually, if paid in full. Unlike other surety companies that work through brokers and agents, Jet cuts out the middleman allowing us to get you the Dismantler Bond quickly and efficiently with no hidden broker fees.

How Do I Get the Lowest Rate on a Dismantler Bond?

Oregon Auto Dismantler Bonds are underwritten by Jet based on the personal credit score of the owner of the dismantling business and may require a review of the business financials. Jet provides the lowest rates to dismantlers that have been in business without any license infractions.

Oregon Dismantler Bond Cost  
Term Cost
Monthly $63
1 Year $626

Filing the Bond With the Oregon DOT

An original bond needs to be filed with the Oregon Department of Transportation, DMV Business Licensing Unit, which Jet does for you. An electronic submission of the bond is accepted by the Department as long as it is signed by both the principal and the surety company. 

For new auto dismantling businesses, you may be sending in other paperwork and wish to send in the bond along with that. Jet gives you the option to have the bond form sent to you, which should be filed at the following address:

DMV Business Licensing Unit
1905 Lana Ave NE
Salem, OR 97314

Why Does ODOT Require Dismantlers to File a Bond?

Auto dismantling bonds are enforced by the DMV Business Licensing Unit at ODOT for the financial protection of the Department. If you do not follow rules and requirements set forth by ORS 822.110, the Department can file a claim on your bond. The DMV mandates the bond necessary for the Department’s protection, due to risks mentioned in ORS 822.137, such as the dismantler failing to obtain a certificate of sale for a major component part they purchased.

What Is the Bond Renewal Process?

The Dismantler Bond is renewable, and will remain on file with ODOT as long as payment is made to Jet prior to the bond’s expiration date. Jet will send you a renewal notice, via email and standard mail, 90 days before the bond is set to end. For those paying monthly, the payments will continue to come out of your account automatically to avoid the hassle of additional paperwork.

The Dismantler Bond is required to be filed every year for the license renewal. Just like your initial bond filing, Jet will file the renewed bond directly with the DMV Business Licensing Unit.

Can Dismantlers Get a Refund if They Don't Need the Bond Anymore?

Yes! Jet Insurance Company allows you to cancel your bond at any time. A prorated refund will be returned which is dependent on how much time is left on the bond term. Other insurance and surety companies have a “minimum earned” clause meaning there will be a minimum amount that will never be returned to you, even if your bond is in place for a short period of time. Those same companies also often have fine print regarding fees involved with cancellation of the bond, which affects the premium returned.

Jet’s monthly payment option is an easy way for dismantler’s to ensure they are always covered and can easily cancel the bond when needed.

The bond remains active for a 30-day period with the ODOT, following a notice of cancellation. The prorated refund will take this factor into account, meaning the notice of cancellation from you to us will then take an additional 30 days to completely cancel the bond.

What Happens If a Claim Is Filed on Your Bond?

Abiding by the law allows motor vehicle dismantlers to avoid bond claims, however, if a claim does arise it is best to be prepared. Examples of why a claim would be filed on your bond are as follows:

ODOT will give notice to the principal to take corrective action for any violation. Should the dismantler not abide by the corrective recourse and the Department files a claim on the bond, Jet will pay out on the losses for up to the bond’s limit of $100,000. Jet is essentially providing an extension of credit with the surety bond, which is proof that you are capable of running your business according to state and federal regulations. Unlike insurance, surety bonds protect the public rather than the business, which means the business owner is responsible to pay back the amount paid to the claimant (ODOT).

There is only so much Jet’s claim department can do in the instance of a claim filed by the ODOT.  As the government entity who collects dismantler fees, does the audits, keeps sufficient records, and investigates all violations, ODOT’s word is final. The Department files claims as a form of corrective action on the dismantler certificate.

Obtaining a Dismantler Certificate 

A dismantler certificate allows the business to operate, but the following steps must be taken prior to receiving the certificate:

  1. Complete the application
  2. Get approval of the business location from the city, county, or other governing entity
  3. Purchase a $100,000 surety bond
  4. Pay the $800 application fee
  5. Submit a plat/hand-drawn map of the business location
  6. Submit all required forms/fees to the Salem DMV Headquarters

Are Any Other Bonds Needed for Dismantlers?

Yes, for some motor vehicle dismantlers other bonds are required. Dismantlers who store over 100 waste tires on site must have a Waste Tire Storage Permit and secure a Waste Tire Storage Bond.


Oregon Motor Vehicle Dismantler Bond Form