Arizona Title Bonds: Simplifying Your Bonding Process Online

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What Are Arizona Title Bonds?

An Arizona title bond, also referred to as a lost title bond or certificate of title bond, is required in order to obtain a bonded title for a motor vehicle lacking a proper title. The bond ensures that the Arizona Department of Transportation cannot be held liable for issuing a bonded title to someone who later turns out not to be the vehicle�s rightful owner. It also provides a way to compensate the rightful owner if the issuance of a bonded title to someone improperly claiming ownership of the vehicle results in financial harm to the true owner.

Who Needs Them?

Anyone who has purchased a motor vehicle but does not have a proper title for it will need to obtain a bonded title. This will allow the vehicle to be registered, sold, donated, or otherwise transferred to someone else. These are the most common reasons someone may need a bonded title:

• They purchased the vehicle (typically from a private individual, not a dealership) but did not receive a title for it
• The title provided by the seller is a forgery, improperly assigned, or damaged in some way that renders it invalid
• The seller provided a valid title, but it was lost or stolen before the new owner could register the vehicle in their own name

The required title bond amount is determined by the Arizona Department of Transportation, Vehicle Services Division, and will be 1.5 times the appraised value of the vehicle.

How Do They Work?

An Arizona title bond must have a three-year term, which is how long a bonded title is good for. If the three years pass with no claim being filed against the bond, the bonded title will be replaced with a regular title.

However, if someone does surface within that three-year period and can prove that they are the rightful owner or a lienholder and have suffered a financial loss because a bonded title was issued, that person can file a claim against the Arizona title bond.

The usual practice is for the surety bond company to pay any claim on behalf of the bonded vehicle owner, who must then reimburse the company. The terms of the surety bond agreement make the bonded individual solely responsible for paying claims.

What Do They Cost?

Most surety bond companies offer three pricing tiers for Arizona title bonds, depending on the required bond amount:

• Bonds for less than $6,000 typically are sold for a flat fee of $100.
• Bonds for more than $6,000 but less than $25,000 usually are sold for a base fee of $100 plus another $15 or $20 per $1,000 of additional coverage.
• Bonds for $25,000 or more must go through the underwriting process and are sold for a premium that is a small percentage of the required bond amount. That percentage is based on the bond applicant’s personal credit score. The better the credit score, the lower the premium rate.

Get Bonded Today

Request a convenient online quote today, or call to speak with one of our experienced professionals about the Arizona title bond you need in order to obtain a bonded title for a motor vehicle.

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