What is a Bonded Title? An Easy to Understand Bonded Title Definition
Bonded titles can be required for vehicles if you don’t have the valid titles, but want to transfer ownership or register vehicles. This can mean that you received an incorrect title, or you just never received your title upon the sale of the vehicle. This bond is a guarantee that a clear title can be produced at a later time and protects the buyer of the vehicle. You can sell a car with a bonded title; however your car might not be as attractive as a car with a current clean title.
If you have simply lost your title, many states will allow you to apply for a duplicate title. Learn more about how surety bonds work and how not having a full understanding can put you at risk. This bond can also be referred to as a lost title bond, auto title bond or a defective title bond.
How to Get a Bonded Title
#1: Determine Your Requirements
Some states will require you to get a vehicle title bond if you have vehicle with no valid title, but want to transfer ownership, obtain car insurance or register it. If you’re just beginning your research, select your state from the list below to determine if your state requires a bonded vehicle title (getting a bonded title in Texas is extremely common).
Select Your State
to Find a Surety Bond
- Select your state
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia
If you have any doubts about which bond you need, it is best to contact a bond professional.
#2: Get Approved for Your Title Bond
If you find that your state does require a title surety bond, you can apply using our online bonded title application.
#3: Sign and Submit Your Bond to the State
After your bond is delivered to you, you must:
- Sign your bond
- Make a copy for your records
- Send the signed bond to the state (along with any other important paperwork provided by the state or bond agency)
What Does a Bonded Title Cost?
Pricing for title bonding is a percentage of the bond amount required of you, which is based on personal credit. Read our guide to learn more about how your bond costs are calculated, or can use our bond premium calculator to get an instant estimate on your bond.
Claims on Vehicle Title Bonds Can Put You at Risk
As mentioned above, you’re responsible to pay bond claims in full which can be as large as the full bond amount (including legal costs). The indemnity agreement you must sign to get your certificate of title surety bond is a legal contract that pledges your assets in the event of bond claims. Watch our video for an easy to understand explanation of how bond claims work.
Getting a Bonded Car Title with Bad Credit
It’s possible to get a car title bond (or any other vehicle title bond) with bad credit, but not all bond agencies will approve you. Your personal credit is the main thing that is considered when you apply for your bond; it’s used to get an idea of your likelihood of causing bond claims and your ability to pay them. Items such as collections, tax liens or unpaid child support on your credit report will cast you in a bad light, and can often lead to getting declined for bond. Unfortunately, even if you get approved for a bond with bad credit, your costs will likely be higher. Use our free bond premium estimate tool to get a ballpark bond price.