Things To Know About Title Bonds
A title bond, also known as a certificate of title bond or lost title bond, is a type of surety bond required by the Department of Motor Vehicles (DMV) or other state agencies when an individual needs to obtain a vehicle title but lacks proper ownership documents. All About Insurance offers title bond in Houston, Conroe, Humble, TX, The Woodlands, Spring, TX and surrounding regions.
These are key aspects to understand about title bonds:
- Purpose of a Title Bond
A title bond serves as a financial guarantee that protects the state and future owners against potential claims of ownership from previous titleholders. It helps verify ownership and prevents fraudulent claims.
- When is a Title Bond Required?
You may need a title bond if:
You lost the original title.
The seller did not provide a valid title.
The vehicle was abandoned or bought without a title.
The title is defective, missing key details, or improperly assigned.
- How a Title Bond Works
You purchase a title bond from a bonding company.
The bond is typically valid for 3 to 5 years, depending on state regulations.
If no ownership disputes arise during the bond period, the vehicle owner may receive a standard title after the bond expires.
- Cost of a Title Bond
The cost varies based on the bond amount required by the state, which is often 1.5 to 2 times the vehicle’s appraised value. Typically, buyers pay $100 to $500, depending on the vehicle’s worth and the applicant’s credit.
- Where to Get a Title Bond
Title bonds can be obtained through insurance agencies, surety bond companies, or online bonding services. Always check with the DMV or local regulations to ensure compliance.
Understanding title bonds can simplify the process of securing a legal title and ensuring smooth vehicle ownership. If you have any questions, please do not hesitate to call us.
