Lost Title Bonds Explained

Lost Title bonds are one of the most common types of bonds applied for here at Surety1.

There are multiple reasons why you might need a Lost Title Bond (also known as a Certificate of Title Bond or a Defective Title Bond). For example, if you purchased a vehicle and never received a title, or if you lost or misplaced your original title, you may need one of these. Typically, these bonds are required by the Department of Motor Vehicles in your state—if they are requiring one from you, you can obtain one here.

What does this bond do? These bonds are required in order to protect the Department from being held liable if the individual trying to register the vehicle were doing so without proper ownership. The term for a Lost Title bond is one year, although they have a three year discovery period. This means that if someone were to come forward within three years stating that the car actually belonged to them, an investigation would be done.

The most important part of this type of bond is the bond amount. The bond amount varies depending on the state requiring the bond, so the first thing you need to do is contact the agency requiring the bond to verify what bond amount you need. Some states require that this amount be the exact value of the vehicle, whereas others require it to be two times the value of the vehicle. Some states allow for a Kelly Blue Book estimate, while other states might ask that you get the vehicle appraised. The Department can reject your bond if the bond amount is incorrect, so it is important to verify that amount before obtaining the bond.

We write these bonds at 1.5% of the bond amount, at a minimum of $100. If you need a Lost Title Surety bond, apply at www.surety1.com, and click on the orange “Apply Now” button. In the drop-down menu for the type of bond, you can select “Lost Title Surety Bond”, “Certificate of Title Surety Bond”, or “Defective Title Surety Bond”.