Vehicle Lost Title Bond

In many states, a vehicle lost title bond might be required of someone who is trying to obtain a title for a vehicle. In some cases, the title may have been lost, it may never have been received upon purchase of the vehicle, or it may have been signed in the wrong place. There are a multitude of reasons that one might need a vehicle lost title bond.
 

Vehicle lost title bonds guarantee that there will be repayment if any valid claims are filed upon the vehicle in question. Valid claims are supported by court judgments. The surety is never responsible for any amount in excess of the bond penalty of these bonds.

The bond penalty (amount) is determined by the state obligee (person or entity requiring the bond). The bond penalty of vehicle lost title bonds correlates with the value of the vehicle. Some states make the bond penalty one and a half times the determined vehicle value. Some states make it more than this. It is important to contact the state office that is requiring the bond in order to determine the bond amount being required.

In order to obtain this type of bond, the principal will need to furnish some sort of approval from the state showing that a bonded title is being required. In most states, this is simply a letter that the state sends you after you have undergone the first process of getting the title for your vehicle. Vehicle information is also going to be required, such as the year, make, model, body style, and VIN of the vehicle.

These bonds typically do not renew. They have an extended term compared to other bonds, which are usually just annual. Most states have vehicle title bond terms of at least three years. It is important to clarify with your state the bond term that you are being required to hold as well.