Lost title bonds are used by a state's Department of Motor Vehicles (DMV). The bond may be required when the ownership information on a vehicle title does not match the party claiming ownership. Lost title bonds may also be required to gain a new title to a vehicle when no existing title can be presented.
When a vehicle is purchased that requires registration with a DMV office, the vehicles title is used to establish and/or transfer ownership of the vehicle. There are situations where verifying ownership using the title cannot be accomplished such as:
When these, and other similar, situations arise, DMV offices can require vehicle ownership be determined using the bonded title process. This simply means that the current owner of the vehicle must obtain a vehicle title bond before a new title document can be created showing the correct vehicle ownership.
A car title bond provides security to anyone who can verify true ownership interest of the vehicle other than the party that transferred ownership through the bonded title process. This means that if someone other than the owner showing on the bonded title can show they are the true owner, that party can claim on the bond up to the bond amount.
A claim made on a lost title bond is handled by the surety, the guarantor of the bond. The surety will determine if the claim is valid. If the claim is found to be valid, the surety will pay the claim. The surety will then collect the amount expended resolving the claim from the principal, the party that transferred ownership via the bonded title process with the DMV. The principal is ultimately financially responsible for the amount expended by the surety to resolve a valid claim.
The cost of a lost title bond is dependent on the bond amount and credit standing of the principal. The bond amount is determined by the DMV and is typically based on the fair market value of the vehicle in question. For many less expensive vehicles with relatively low bond amounts, the cost of a lost title bond is around $250 with some quotes coming in lower or higher. Form more expensive vehicles with higher bond amounts, lost title bond quotes typically range from 1% to 3% of the required bond amount. This means that a vehicle with a required bond amount of $100,000 would often be quoted from $1,000 to $3,000. These are typical ranges and quotes can come back lower or higher than the range since credit does play a role in the amount of the quote. Typically though, the better the applicant's credit, the lower the quote.
Lost title bonds are easy to obtain. They typically only require a lost title bond application. Once the application is received, the applicant's credit is taken into consideration. This credit check doesn't affect the applicant's credit. Lost title bond quotes are usually returned very quickly, less than a day. The whole bonding process can be started and completed in one or two business days.
Viking Bond Service has provided our clients with lost title bonds for over a decade. We can get our customers bonded quickly and we try to keep the process as simple as possible. If you need a lost or defective title bond, contact us today.
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