bonded title
Car Insurance

What Does Bonded Title Mean, and Why Would I Need One?

By Mike Richards Updated: 12/23/2022 Posted: 10/24/2015

What is Bonded Title Meaning

Do I Need a Lawyer to Obtain a Title Bond for My Vehicle?


  1. What is a bonded title? A bonded title is a certificate that verifies that you own a motor vehicle. It allows you to register or sell the vehicle, and buy insurance on it. In order to register and insure any vehicle that you buy, you have to be able to prove ownership. If you’re missing documentation that proves ownership, you may have to get a bonded title. Easy to get what does bonded title mean if you know what is Certificate of Title Surety. This is the same.

    How to Get a Surety Bond or Title Bonds

    The requirements for getting a bonded title can vary, depending on what state you live in (Texas, NY or others). Generally speaking, though, there are general aspects in common and the DMV in your state can help you to get a bonded title.

    To get a bonded title, you have to have either purchased the vehicle or gotten it as a gift. You can’t get a vehicle dealer bond for a vehicle that has been stolen or abandoned.

    When you apply for a bonded title, you will have to bring along evidence that supports your ownership of the vehicle like an invoice, cancelled check, or bill of sale, along with your photo identification. Assuming that your documents are approved, the DMV will issue you a letter telling you how much you have to pay (the quote) for the bonded title, based on the value of your vehicle. How much is a bonded title you can ask in local DMV.

    Then, you’ll take the letter from the DMV to an agency that is entitled to issue you a bonded title or surety bonds direct. Once it’s issued, you’re good to go. Use their locations online services to find a location near you.

    What is a Bonded Title Used For?

    A bonded title determines ownership if there’s a dispute as to who owns a vehicle. If an owner didn’t deliver title to a vehicle after a dispute, or a car was sold with a fraudulent title, the bonded title proves ownership and you don’t need to make a claim.

    You Might Need a Bonded Title If…

    …1. You bought a car and didn’t get a bill of sale or a title. Maybe you got a vehicle as a gift, and you don’t have a bill of sale or a title. You have to prove that the car is yours. Proof could include a cancelled check, a receipt, or even a notarized statement as to how you obtained the vehicle.

    …2. You bought a car and you only have a bill of sale. That bill of sale can be used to get a bonded title, proving ownership. Since you have to prove ownership to get insurance or register your car, a bonded title will allow you to do that.

    …3. Your title was improperly assigned. Maybe you bought a car and had it sent to you, but the title provided to you by the seller wasn’t assigned properly. You can use your receipt or bill of sale to prove ownership and thereby apply for a bonded title.

    …4. You lost the title to your vehicle. You might have purchased a vehicle, had the title to it, and lost it before you could register the vehicle. In this case, you can take your receipt, bill of sale, or a notarized statement, and apply for a bonded title, which will prove that you own the vehicle.

    Ideally, you’ll never need a bonded title. But if you do, follow the steps above to get one.

    Other Important Terms Regarding Bonded Title Process:

    Bond fidelity bonds: Fidelity bonds are business insurance policies that protect employers from losses caused by their employees’ dishonest or fraudulent actions.

    Bonds ERISA bond: ERISA fidelity bonds protect plans against fraud or dishonesty-related losses.

    Bond surety bonds: Also known as a title surety bond or title bond surety, surety bonds protect the obligee against losses caused by the principal’s failure to meet its obligations. Underwriters determine your surety bonds cost based on the total bond amount and the bond premium, and two factors:

    1. Bond coverage and surety bond type
    2. An applicant’s credit history

    Bonded title dispute: Whenever a vehicle or other type of automobile is transferred, there may be a bonded title dispute.

    Contractor license bond: In order to ensure that a contractor is state- or locally-licensed, he or she must post a contractor license bond.

    Vehicle bonded titles: A bonded title is a title that has a surety bond backing it and must be obtained before a title can be issued. You can get one by obtaining a “Lost Title Bond.” Also known as a bonded title certificate, title bonded titles, or title bond bonded.

    Vehicle history report: Reports on vehicle history include the names of previous owners, odometer readings, open recalls, damage, and accidents.

Ideally, you’ll never need a bonded title. But if you do, follow the steps above to get one.

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