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How to Get a Bonded Title for a Vehicle

  • 5 min read

Vehicle titling using the bonded title process is an excellent choice in most states if you are missing the prior title or other proof of ownership. You may use the bonded title process to obtain a vehicle title if you are unable to provide a prior title. In a bonded title procedure, a bond is required for the vehicle title. What is the procedure for obtaining a title bond, and where can you locate one?

Most states offer an excellent vehicle titling alternative known as the bonded title. In most states, you may use the bonded title procedure to obtain a vehicle title if you lack the prior title or other evidence of ownership. The vehicle title bond is required in a bonded title procedure. How does the bonded title method operate and where can you get a title bond?

What is a bonded title?

In order to secure a vehicle title, a bonded title is often issued when the owner of a vehicle does not have sufficient proof of ownership. A bonded title is required when the owner of a vehicle does not have sufficient evidence of ownership to apply for a new vehicle title. Once a bonded title has been issued, it will bear the words ‘BONDED’ in big letters. This does not, however, imply a permanent title brand. A bonded title lasts three to five years, depending on your state. After the time period has expired, you can apply for a clean title as long as the current title is clear of other issues.

What is a title bond?

Title bonds, also known as motor vehicle title bonds, are a type of surety bond that is used to guarantee vehicle ownership. Your state DMV will require a title bond because they are taking your word as the owner and, in the event of ownership disagreement being discovered after the title is issued, to prevent their liability.

How much is a title bond?

Every state has unique specifications concerning the level of your vehicle title bond. It’s not that if your automobile is worth $10,000, you must spend $15,000 for a title bond. You won’t need to pay the full amount for a title bond until an ownership discrepancy is found after the titles have been bonded. It is common for a bond to cost $100-$150 for a moderately valued automobile. You won’t have to spend the whole amount for a bond unless there is an ownership discrepancy once the bonded titles are issued. You may buy a title bond from any bonding company or insurance company.

What states allow for the bonded title process?

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Rhode Island, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, and Wyoming.

What states do not have a process for bonding titles?

Delaware, Hawaii, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Virginia, and West Virginia.

Even if you live in one of these states, you may still be able to obtain a bonded title from Vermont, provided that your vehicle is at least 15 years old. In order to qualify, you don’t have to be a Vermont resident, but you must own a vehicle that’s at least 15 years old. Before going down this route, make sure your state will accept this title as proof of ownership for transfer.

Tips for taking on the bonded​ title ​process​​.

Prior to purchasing your title bond, verify your eligibility.

Make sure that your car is eligible if you live in a state that accepts bonded titles. Although most states accept the procedure, there may be constraints, such as the fact that the automobile must be over a certain model year. In addition, make sure you’re purchasing the correct amount of bond. Title bonds cannot be returned, and you should only purchase them if you meet the requirements for a bonded title.

Include all of the correct paperwork for your state

Remember, the bonded title process isn’t as streamlined as the traditional title transfer process. Check your state’s process to make sure you have all of the correct paperwork, inspections, and documentation completed prior to your application.

It’s important to get a vehicle history report before buying a used car.

If you’re buying a used vehicle, it’s a good idea to get a vehicle history report before beginning the title bond process, particularly if you just purchased the vehicle. You may use an NMVTIS-accredited provider to obtain information on whether your car has been branded salvage, has an accident history, has been stolen, auctioned off, or has any other incident. Because vehicles branded salvage, junk, parts-only, nonrepairable, or any other permanent title brand are not eligible for a bonded title, this information is crucial.

When applying, remember to include state taxes and fees.

Before submitting your application, you may have to pay sales tax and a state title application fee. Make sure you are aware of your state’s fees before submitting so that you can pay them on time.

It may seem less than ideal to have a title brand, but a bonded title brand is nothing to worry about. Unfortunately, important documents are destroyed and misplaced all the time, and this can also happen to a vehicle title.