What is a title bond?
A title bond (often called a certificate of title bond or bonded title) is a type of surety bond used when someone needs to obtain a vehicle title but doesn't have sufficient proof of ownership.
For example, someone buys an older vehicle but never receives a properly assigned title from the seller. The DMV may require a title bond before issuing a new title.
The three parties are generally:
Principal: The person applying for the vehicle title.
Obligee: Usually the state/DMV requiring the bond.
Surety: The insurance/surety company issuing the bond.
What the bond actually does
The bond doesn't prove that the applicant owns the vehicle. Instead, it financially protects the state and other people who could have a legitimate ownership interest in it.
Suppose someone obtains a bonded title, but a year later another person establishes that the vehicle actually belonged to them. That person could potentially make a claim against the title bond. If the surety pays a valid claim, it can generally seek reimbursement from the person who purchased the bond.
The bond amount is typically determined by the state based on the vehicle's value—not simply whatever amount the customer chooses. The customer then pays a premium that's only a fraction of the bond amount.
So if the DMV requires a $15,000 title bond, the customer doesn't necessarily pay $15,000. They might pay a relatively small premium to have the surety issue a $15,000 bond.
We specialize in title bonds in Georgia. Please give us a call at 229-226-2480 to discuss, premiums for these start at $175.