If you’re trying to register, insure, or sell a vehicle, trailer, or camper — but you can’t get a duplicate title from your DMV — you might be able to solve the problem with a bonded title.
Not every state offers them, so your first step is checking whether your DMV allows bonded titles. If they do, you’ll need a certificate of title bond, which is basically a financial guarantee tied to the vehicle. The asset can’t be stolen, abandoned, or tied up in legal disputes, and because you’re signing legal documents, it helps to understand exactly what you’re getting into.
So, what is a bonded title? When the DMV tells someone they need a bonded title, the question usually pops up right away. A bonded title is simply a certificate of title backed by a title bond, a surety bond that guarantees the vehicle is truly yours. People sometimes confuse bonded titles with indemnity bonds or security bonds, but they’re not the same thing.
What Does a Bonded Title Mean?
A bonded title means your title is supported by a surety bond. You typically need this bond, often called a lost title bond, before the DMV will issue the bonded title. The bond acts as protection for anyone who might later claim they’re the rightful owner.
Think of title bond as a three‑way agreement between you, the surety company issuing the title bond, and the DMV. The bond promises that if someone else shows up with proof that the vehicle is actually theirs, the surety company will pay them the value of the vehicle. If that happens, you’re responsible for paying the surety company back. The bond doesn’t give you ownership, it simply allows the DMV to issue a title while protecting any potential rightful owner.
Bonded Title vs. Standard Title
A bonded title functions much like a standard title, but with one important difference: it carries a financial guarantee. The bond exists solely to protect anyone who may later prove they’re the rightful owner of the vehicle.
A bonded title does not mean the vehicle is “less legal,” and it doesn’t prevent you from driving, registering, or insuring it. However, some buyers and lenders may view a bonded title as temporary until the bond period expires. Once the bond is released, the title becomes indistinguishable from a standard title issued through normal DMV channels.
Do I Need a Title Bond?
Before you go through the bonded title process, make sure you really need one. If the title was already in your name and you just misplaced it, the DMV can usually issue a duplicate. If you have a Bill of Sale and there are no liens, you might be able to request a replacement title without needing a bond.
You may need a title bond if:
- You lost a title that was never transferred into your name
- The title has missing or incorrect information you can’t fix
- You received the vehicle as a gift but never got a title
- The title is damaged or unreadable
How to Get a Bonded Title
You can’t get a bonded title from a dealership or manufacturer. It can only be acquired through your state’s DMV and a licensed surety company. Some states don’t issue bonded titles at all, so always check with your DMV first. If your state does allow them, the process is usually pretty simple:
- Visit your DMV and complete the required paperwork.
- They’ll tell you how to determine the vehicle’s value and what documents you’ll need.
- Take that information to a surety company and purchase your title bond.
- The surety company may run a credit check, but many can still issue bonds for less‑than‑perfect credit.
- You’ll pay a small percentage of the bond amount, sign the bond agreement, and bring proof of the bond back to the DMV.
Most states also require an affidavit of ownership, a vehicle inspection, and a small administrative fee, which is usually around $15.
Common Mistakes to Avoid
One of the most common mistakes people make is purchasing a title bond before the DMV tells them exactly what they need. Bond amounts, wording, and documentation requirements are state-specific, and buying the wrong bond can delay the process.
Another frequent misconception is assuming a bonded title guarantees ownership. It doesn’t, it simply allows the DMV to issue a title while protecting any potential rightful owner. Finally, failing to disclose a bonded title when selling a vehicle can create legal issues later on.
How Much Does a Title Bond Cost?
The cost of a title bond is based on the value of the vehicle, not the full bond amount. Most states require the bond to be written for one to one-and-a-half times the vehicle’s appraised value, but you only pay a small percentage of that amount as your premium.
For many applicants, title bonds are surprisingly affordable. In a lot of cases, premiums fall in the $100 to $250 range. Final pricing depends on the bond amount, state requirements, and sometimes credit history. Even if your credit isn’t perfect, many surety companies can still issue a bond.
How Long a Bonded Title Is Valid
A bonded title isn’t permanent right away. In most states, the title bond remains in place for a set period, typically three to five years. During that time, the bonded title allows you to register, insure, and use the vehicle while the state keeps a safeguard in place in case someone else later claims ownership.
Once the bond period ends with no claims filed, the bonded status is usually removed. At that point, the DMV can issue a standard title in your name without the bond attached. The exact timeline and conversion process varies by state, which is why it’s always important to confirm requirements with your local DMV.
Bonded Titles for Boats, Trailers, and Campers
Bonded titles aren’t limited to cars and trucks. They’re often used for boats, trailers, campers, and other titled assets when ownership documentation is missing or incomplete.
The process is generally similar, but requirements can differ depending on the type of asset and whether it’s titled or registered in your state. Some trailers, for example, may not require a title at all, while boats often do. Checking with your DMV before starting the process can save time and unnecessary expense.
Can You Insure or Sell a Vehicle With a Bonded Title?
In most states, yes. Insurance companies generally accept bonded titles, allowing you to obtain coverage just as you would with a standard title. Registration is also typically permitted.
Selling a vehicle with a bonded title is possible, but transparency is key. Many states require you to disclose the bonded status to potential buyers. Some buyers may prefer to wait until the bond period ends, while others are comfortable moving forward as long as the paperwork is clear. Rules vary, so checking with your DMV before selling is always the safest approach.
States That Don’t Offer Bonded Titles
Not every state allows bonded titles. Some require alternative processes, such as court-ordered titles or abandoned vehicle procedures. Because rules change and vary widely, your first step should always be confirming whether bonded titles are permitted in your state and what documentation is required.
If bonded titles aren’t an option where you live, a licensed surety professional or your DMV can help point you toward the appropriate alternative.
What Happens If Someone Files a Claim Against the Bond?
If someone comes forward during the bond period and provides legal proof that they own the vehicle, they can file a claim against the title bond. The surety company investigates the claim and, if it’s found to be valid, pays the claimant up to the bond amount.
It’s important to understand that the bond protects the claimant, not the bonded title holder. If a claim is paid, you are responsible for reimbursing the surety company. While valid claims are relatively rare, this is why bonded titles are only issued when the DMV believes ownership is likely legitimate.
Bonded Title by NFP
If you’re dealing with a missing or problematic title, a certificate of title bond can be the bridge between uncertainty and legal ownership. Requirements differ by state, but the goal is always the same: giving the DMV confidence while protecting anyone with a legitimate claim.
NFP has been providing title bonds nationwide since 1984. We work with top-rated surety companies and offer an easy online application to help you secure the right bond at a competitive price, so you can move forward with confidence and get back on the road.
