The Basics
How a Title Bond Works
What it guarantees
A vehicle title bond (also called a bonded title, defective title bond, or motor vehicle ownership surety bond) protects the state and any prior owners or lienholders if a future ownership claim is made against your vehicle.
Why it is required
States require a title bond when you cannot prove ownership with a standard title — for example, a lost title, an improperly assigned title, or a missing bill of sale. The bond lets the DMV issue a bonded title in your name.
What it costs
You pay a premium, not the full bond amount. The bond amount is usually based on your vehicle’s fair market value, and the premium is a small percentage of that amount.
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