Signed into law on March 16, 2017, HB 1105 calls for the chief of the Colorado State Patrol to create a pilot program by January 1, 2018, authorizing transportation management associations and organizations to engage in the verification of commercial vehicle information, including Colorado VIN verification. A transportation management association is typically a non-profit responsible for implementing Transportation Demand Management programs within a particular area. Part of the new legislation requires the association or organization to provide evidence that a savings account or deposit in a certificate of deposit exists in an adequate amount. The alternative to an account or deposit is for the association or organization to provide a $10,000 surety bond to engage in Colorado VIN verification.
What does VIN mean?
VIN stands for vehicle identification number and every vehicle’s is unique to that particular vehicle. Identification numbers for vehicles built in 1981 and beyond will contain 17 characters, while vehicles built prior to 1981 have identification numbers ranging from 11 to 17 characters. Vehicle identification numbers are made up of two parts: part one tells the country and manufacturer; and part two gives the description and identifier of the vehicle.
What does the bond have to do with Colorado VIN verification?
By submitting this bond, transportation management associations and organizations may receive a permit that allows them to verify commercial vehicle information, which includes the vehicle’s identification number. This verification is required of all vehicles that have never been registered in Colorado and the bond is written to remove liability from any person who is harmed by the issuance of a certificate title including a verification performed by a transportation management association or organization. Therefore, if the verification is not done according to specific standards, a claim may be filed against the association or organization’s bond. Once a valid claim is made, the surety company will pay up to the full amount of the bond and will then look to the association or organization to reimburse them for all money paid out.
How much will this bond cost?
The premium that an applicant should expect to pay for this bond will be determined by an underwriter’s review of their credit. Typically, applicants who have exceptional credit are approved for as little as 1-3% (of the total bond amount). So for a $10,000 bond, a highly qualified applicant could expect to pay between $100 and $300. For those with lower credit, premiums will typically range from 3-10%. However, what someone pays for the first year of coverage is not necessarily what they will pay at renewal. For example, if a licensee’s credit improves during the bond’s term, they may find themselves paying significantly less in premium at renewal time.
To learn more about getting bonded in Colorado, visit here. Find out exactly how much you’ll pay for your bond by calling SuretyBonds.com at 1 (800) 308-4358 or click below to request a free quote online now.