There are multiple types of surety bonds all designed to help individuals and businesses in different ways. There are a few surety bonds designed to cover your vehicle, as well. Keep in mind that a surety bond is not the same as insurance.
A title bond—also known as a “Certificate of Title Surety”—is a type of surety bond. You may need a title bond if your vehicle’s title is:
If the former owner of the vehicle did not transfer the title or you purchased the vehicle and received only a receipt, you may need a title bond.
A title bond is proof that you own the vehicle and will replace the missing or defective title. You need a title or title bond for a car in order to insure, register or sell it. A title bond allows you to bypass a trial and receive a title quicker.
How Do You Get a Title Bond?
There are certain steps you must follow in order to get a title bond for your vehicle. Some of these steps and requirements vary per state, but in Texas, you must:
Make sure you’re eligible. Those who can receive a title bond in Texas are either Texas residents, stationed in Texas through the military or have a vehicle that was last titled in Texas. You do not qualify for a title bond if the vehicle is stolen, abandoned or under other pending lawsuits.
Purchase a surety bond by providing evidence of your title claim such as a bill of sale or copy of the original title. This should be mailed to the DMV along with proof of physical inspection, proof of fact for bonded title, and a copy of your photo ID. There may be an administrative fee, as well. Be sure to check your DMVs website for their title bond requirements. After you receive your surety bond, you have 30 days to apply for a title bond.
Provide the nearest county tax office with the statement of fact for bonded title, statement of physical inspection, evidence such as a receipt or copy of the old title and a copy of your photo ID.
If you have any questions about your vehicle’s bonds or title, be sure to ask a surety professional. Also be sure that you have an auto insurance policy fit for your vehicle.