Lost Title Bond
If you lose the title to your vehicle or if someone steals it, you may need a lost title bond, which serves as proof of ownership of a vehicle to the Department of Motor Vehicles (DMV) in the owner’s state.
Who Needs a Lost Title Bond?
You may need a lost title bond if you bought a car and did not receive the title or only received a sale invoice. If you need to sell or register that car, you’re going to need proof that you own the vehicle.
You may have also received a title that someone assigned improperly. If you bought a car and lost the title before transferring it to your name, you may need a lost title bond. Bonding a vehicle can be tricky, depending on the circumstances, such as moving between states. In those cases, you will likely have to contact the DMV of each state to figure out how to obtain a lost title bond for your vehicle.
Such a bond is typically the value of your vehicle, up to double the total value. The cost of the bond is usually a small percentage of the total value of the vehicle, and the vehicle will have to meet certain criteria to qualify. Abandoned vehicles are not eligible for lost title bonds – the person applying for the bond must be the rightful owner.
Most states require that the vehicle has all the parts needed to function, but it may not need to be operable to qualify. However, some states will require a vehicle inspection to qualify for a lost title bond.
A lost title bond may be necessary for registering the vehicle, buying insurance for it, or selling it (as proof of ownership). A lost title bond fills that requirement in lieu of the proper title.
If you have questions regarding lost title bonds, feel free to contact Smith Bond and Surety for a consultation.