FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about vehicle surety bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
The term “Vehicle bonds” refers to the kind of surety bond required in order to transfer ownership or register a vehicle when there is an issue with the vehicle’s title. If you were given an incorrect title, lost the title, or were never given a title when you purchased a vehicle, before you can register or sell the vehicle, you will need to obtain a surety bond as guarantee that a clear title will be produced.
These Certificate of Title surety bonds are also known as lost title bonds, auto title bonds, defective title bonds, lost vehicle title bonds, or DMV bonds. A vehicle can be sold with a certificate of title bond, but you may not be able to get as much money for it as you would for one with a clear title. This bonding procedure applies to cars, trailers, ATVs, motorcycles, motor homes, boats, and other vehicles that require titles for registration or transfer of ownership.
You will need a vehicle bond if you want to transfer ownership or register a vehicle with a lost, stolen, or missing title.
These bonds provide financial protection if it is discovered within the bond period that there is a lien against a title. For example, if there is an outstanding auto loan balance or if a duplicate title has already been issued, the bond can provide protection. In these cases, the lienholder or legitimate owner can file a claim against the bond. The surety company that issued the bond will investigate the claim to make sure it’s valid before paying the claimant up to the full bond amount.
Note, however, that the principal signs an indemnity agreement that requires full reimbursement of the surety for any claims paid out on the bond.
The DMV requiring the surety bond sets the required bond amount based on the vehicle’s appraised value. The surety will calculate your premium rate, the percentage of the bond amount you will pay to obtain the bond, based largely on your personal credit score. Unless you have serious credit problems, you’ll most likely pay a premium rate that’s somewhere in the vicinity of 1.5% of the bond amount. Applicants with poor credit may pay more.
Many people find the subject of vehicle surety bonds a little challenging. Feel free to give us a call for assistance, or simply request a quote online.
