Lost Title Bonds

When you purchase a surety bond for a lost title, three parties enter into an agreement:

• The state motor vehicle department (obligee) requires the bond.
• You (the principal) purchase it.
• The surety company issues it.

The bond amount reflects your vehicle’s value, and the obligation is typically valid for three or four years. If someone proves they’re a rightful owner of the vehicle during this period, they can file a claim against the bond and get compensated. In case no one challenges your ownership during the agreed term, it expires, and you receive a standard title.

Obtaining a lost title bond can be necessary in the following situations:

• The seller accepted your payment but provided you only with a bill of sale or receipt.
• The proof of ownership you received is invalid due to fraud, alterations, or incorrect names.
• The document was lost or stolen after the sale but before registration.

Some states allow bonded titles for abandoned vehicles found on private property. In any case, proof of ownership is required through available documentation, like bills of sale, prior registration records, or canceled checks.

The bonded title process consists of five main steps:

1. Check what appraisal amount your state’s DMV requires. This determines your bond amount.
2. Determine your vehicle identification number (VIN), make, model, and year.
3. Contact Surety Bonds Agent by filling out our online form or calling us at 866-36BONDS (866-362-6637).
4. Provide your name as it appears on your driver’s license, your address, and all vehicle details.
5. After approval and payment, we’ll issue your bond. Sign and submit it to your DMV along with other required paperwork.

The main purpose of such agreements is to ensure payment in case of valid claims filed within the right timeframe from legitimate vehicle owners. The surety company pays for the financial damages claimed, but you then have to reimburse the amount. If you don’t, you bear a legal responsibility.