Nevada Lost Title Bond: A Comprehensive Guide

September 24, 2021

This guide provides information for insurance agents to help their customers obtain a Nevada Lost Title Bond

At a Glance:

• Average Cost: Minimum of $100 or 1.5% of the bond amount, whichever is greater
• Bond Amount: One and a half times the vehicle’s MSRP value
• Who Needs it: Vehicle title applicants in Nevada who do not have adequate proof of ownership
• Purpose: To ensure the rightful vehicle owner does not suffer financial harm if the title applicant does not actually own the vehicle
• Who Regulates Lost Title Bonds In Nevada: The Nevada Department of Motor Vehicles

Background

Nevada statute 482.2605 requires residents who do not have adequate proof that they own their vehicle to purchase a surety bond prior to obtaining a duplicate title. The Nevada legislature enacted the bonding requirement to ensure that the rightful vehicle owner will receive compensation if the title applicant does not actually own the vehicle. The bond will be active for three years from the date of issuance and must be in an amount equal to one and a half times the vehicle’s MSRP value.

What is the Purpose of the Nevada Lost Title Bond?

Nevada requires residents to purchase a surety bond as part of the application process to obtain a bonded title. The bond ensures that the rightful vehicle owner will not suffer a financial loss if the title applicant is seeking to obtain the title fraudulently. If the title applicant is engaging in fraud, then the rightful vehicle owner can file a claim against the bond and receive compensation up to the full amount of the bond. In short, the bond acts as a safeguard against people attempting to obtain ownership of a vehicle through unethical means.

How Can an Insurance Agent Obtain a Nevada Lost Title Bond?

BondExchange makes obtaining a Nevada Lost Title Bond easy. Simply log in to your account and use our keyword search to find the “title” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

How is the Bond Amount Determined?

Nevada statute 482.2605 dictates that the bond amount must be equal to one and a half times the value of the vehicle Manufacturer’s Suggested Retail Price (MSRP). Lost title bonds for salvage vehicles must equal 25% of the vehicle’s MSRP value.

Is a Credit Check Required for the Nevada Lost Title Bond?

Surety companies will not conduct a credit check for bonds that are less than $25,000. At limits over $25,000, surety companies will review the applicant’s credit standing to determine qualification for the bond. For larger bond amounts, applicants with poor credit may be subject to a higher rate. Generally, most carriers want to understand how the applicant came to have ownership of the vehicle.

How Much Does the Nevada Lost Title Bond Cost?

The Nevada Lost Title Bond costs either $100 or 1.5% of the bond amount, whichever is greater (rates may vary for bonds greater than $25,000).

Who is Required to Purchase a Bond?

The Nevada Department of Motor Vehicles requires title applicants to purchase a surety bond if the applicant cannot present the department with tangible proof that they own the vehicle and are unable to contact the vehicle’s previous owner. Lost title bonds are typically required for the following reasons:

• The vehicle has never been titled
• The applicant never received the title
• The previous owner never titled the vehicle
• The applicant has the title but there is an error in the title transfer
• The applicant purchased an unclaimed/abandoned vehicle and is not a bonded agent

How do Nevada Residents Apply for a Bonded Title?

To apply for a bonded title, Nevada residents must complete the following steps:

Step 1 – Contact the DMV

Bonded title applicants in Nevada should consult the DMV’s Title Research Section at (775) 684-4180 prior to purchasing a surety bond. Nevada does not require all title applicants to obtain a bonded title, and usually only does so as an absolute last resort. Title applicants should ensure that they actually need a bond before purchasing one. If the DMV determines the applicant needs a bond, they will provide the applicant with an Affidavit for Bonded Vehicle Title form that must be completed.

Step 2 – Have the Vehicle Inspected

Bonded title applicants must have their vehicle inspected by either a DMV full service office, sworn law enforcement officer, or any business authorized by the DMV to conduct inspections. The applicant must also complete parts 1 and 2 of the affidavit (see Step 1) during the inspection.

Step 3 – Mail the Affidavit to the Title Research Section

After their vehicle has been inspected, title applicants should mail their completed affidavit, as well as copies of any and all ownership documents, to the following address:

Nevada Department of Motor Vehicles
Title Research Section
555 Wright Way
Carson City, NV 89711

Step 4 – Purchase a Surety Bond

After receiving the applicant’s Affidavit of Bonded Vehicle Title form, the DMV will mail the applicant a Vehicle Bond Affidavit and will inform the applicant of their required bond amount. Bonded title applicants must purchase and maintain a surety bond in an amount equal to one and half times the vehicle’s MSRP value.

Step 5 – Return all Documents to the DMV

After purchasing their bond, bonded title applicants must mail their bond, as as well as all affidavits and original documentation to the following address:

Nevada Department of Motor Vehicles
Title Research Section
555 Wright Way
Carson City, NV 89711

How Do Nevada Bonded Title Applicants File Their Bond?

In Nevada, bonded title applicants should mail the completed bond form, including the power of attorney, to the following address:

Nevada Department of Motor Vehicles
Title Research Section
555 Wright Way
Carson City, NV 89711

The Nevada Lost Title Surety Bond requires signatures from both the surety company that issues the bond and the bonded title applicant. The surety company should include the following information on the bond form:

• The legal name, address, and phone number entity/individual(s) buying the bond
• Surety company’s name, address, phone number, and email address
• Bond amount
• Vehicle information
• Date the bond is signed

What Are the Insurance Requirements for Bonded Title Applicants in Nevada?

Nevada requires all motor vehicle owners to purchase auto insurance with the following minimum limits:

• $25,000 per person
• $50,000 per accident
• $20,000 property damage per accident

Bonded title applicants must purchase and maintain a surety bond in an amount equal to one and half times the vehicle’s MSRP value.

How Can Nevada Residents Avoid Claims Against Their Lost Title Bond?

To avoid claims against their bond, bonded title applicants in Nevada must ensure that they are the rightful owners of the motor vehicle.

What Other Insurance Products Can Agents Offer Bonded Title Applicants in Nevada?

Nevada requires all motor vehicle owners to purchase auto insurance. Bonds are our only business at BondExchange, so we do not issue other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.