The cost of obtaining a title bond varies depending on it is usually 1%-3% of the bond amount, which is dependent on several factors. This includes the state that you live in, the value of the vehicle and the amount of the bond required by your state DMV. Most commonly, we see that the bond amount is anywhere from 1x-3x the value of the vehicle.
Each state has their own formula for determining the bond amount, but it’s usually based on the value of the vehicle. For example, in Florida the bond amount is 2x the value of the vehicle, whereas in Arizona it’s 1.5x. Click on your state to see what bond amount is required and what is the process for obtaining and filing a bonded title. Our starting rate for a standard 3-year term for all states is $100.
People often confuse the two, but they are two separate things. In layman terms, a title bond is a necessary step towards getting a bonded title. Let’s illustrate this with an example:
Sam recently purchased a car without a title. He goes to the local DMV and DMV tells him to purchase a title bond with a bond amount of $6,000, which is 2x the value of his vehicle - important to note here that this is based on his local state requirements. Sam purchases a title bond from suretynow.com and takes that to the DMV. DMV does an inspection of Sam’s vehicle and then proceeds to issue Sam a bonded title. The vehicle is now registered with the local DMV and Sam is able to drive it around legally. The bonded title also proves that Sam is the rightful owner of the vehicle and can be used as proof of ownership when Sam wants to sell the vehicle to the next owner.
If you get the bond from us, we should be able to issue you the bond within the same day.
The time it takes to get a bonded title can vary depending on several factors, including the state where you live, the specific requirements of your state, and how quickly you are able to complete the necessary paperwork and inspections. Generally speaking, this process can take anywhere from a week to a month.
A title bond protects against claims to the vehicle's ownership or title. If someone else comes forward with a legitimate claim to the title, the bonding company will provide compensation to the person up to the amount of the bond, which is usually more than the value of the car. It does not protect against mechanical issues or damage. It insures you against any future claims to ownership of the vehicle.
Yes, bonded titles are still needed for these type of vehicles if you’ve lost the title to them or acquired them without a title. We offer title bonds for these types of vehicles as well.
Yes, it is possible to be rejected for a bonded title. In our experience, here are the most common reasons that local DMVs refuse bonded title requests:
Eligibility requirements vary state to state. We recommend you reach out to your local DMV to clarify if there are questions regarding your eligibility for a bonded title.
This depends on the state and its specific rules and regulations. In some states, the bond amount is non-negotiable and must be set according to a specific formula or percentage of the vehicle's appraised value. In other states, you may be able to provide additional documentation or evidence to support a different bond amount. For example, in Wisconsin, if you provide results of an independent appraisal conducted by an independent third-party, the Wisconsin DMV will adjust the bond amount based on your provided appraisal value. The best way to find out is to clarify with your local DMV.
Yes, the bonded title will typically be in effect for 3-5 years, depending on the state. This is known as a holding period where the state wants to check if any persons will come to make a claim on the vehicle. If no one comes to make a claim on the vehicle, then after the holding period, you can apply for a regular title, after which the vehicle is fully licensed to you. As a result of this, a title bond is a one time transaction that only needs to be done once.
To obtain a title bond, you’ll need to provide us with the following information:
Specific states may have additional requirements, but above are required to get a title bond in every state.
If a claim is made on the title bond, the surety company and local DMV will investigate the claim and order the vehicle to be returned to the rightful owner. Let’s illustrate this with an example. There’s three parties to this scenario: James, a car thief who sells cars without titles on Facebook marketplace; Mason, an ill-informed consumer looking for a cheap second hand car; and Harry, a law abiding citizen who had his vehicle stolen by James.
Let's imagine that Mason buys a 2012 Honda Civic from James on Facebook Marketplace. James tells Mason that he lost the title to the car, so he can’t officially transfer the car to Mason. The price was amazing though, so Mason decides to ignore this minor detail and pays for the car in cash. He later gets a bonded title through the Florida DMV. This is where Mason made a mistake - he should never have bought a car without demanding proof of ownership. He should’ve demanded a bill of sale or proof of payment from the previous owner and ensured that the vehicle registration was in his name before buying the car.
Let’s get back to the story. A year later, Mason receives a notice from the Florida DMV saying that the car had been reported stolen in California three years ago and the rightful owner, Harry, wanted it back. Harry found out that someone was driving his stolen car because he got a Florida parking ticket (because of Mason) that was sent to his home address in California. He contacts the Florida DMV and files a complaint against Mason. The Florida DMV then investigates the case and concludes that the car belonged to Harry, rightfully so since it was stolen.
However, instead of taking possession of the car, Harry decides to sue Mason instead for the value of the car. In court, Mason could not produce any proof of ownership for the car. The court ruled in favor of Harry since he had the original title, and ordered Mason to pay.
Unfortunately, Mason didn't have the money to pay Harry, so Harry files a claim on Mason’s Lost Title Bond. The bonding company investigates the claim and deem the claim to be valid. They paid out the claim, which covers the value of the car and Harry's attorney fees. The payout doesn’t exceed the bond's limit.
Now Mason has to pay the surety company back for the claim payment that was made on his behalf. This is because Lost Title Bonds act as lines of credit, and the expectation is that the bond holder will pay back to refill the line of credit back to the original amount. Mason still has the car, but if he doesn’t pay the surety company back, then the company will cancel his bond and he would have to start the whole bonded title process again from scratch.
To prevent any potential claims, it's important to take certain steps before even applying for a Lost Title Bond. The DMV will typically investigate the history of the vehicle to ensure it hasn't been reported as lost or stolen. If the vehicle passes the investigation, you can proceed with obtaining a bonded title.
However, it's also important to take some additional measures to prove your rightful ownership of the vehicle. We strongly recommends that you: