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Purchasing a three-year Texas lost title surety bond is a mandatory step in obtaining a bonded title for a vehicle you purchased but don’t have a title for. You might not have a title for the following reasons:
Without a valid title, you can’t register, sell, donate, or otherwise transfer ownership of the vehicle. If you’re a resident of Texas or a member of the armed forces currently stationed in Texas, you should qualify for a bonded title.
A Texas lost title bond protects the Texas DMV from liability if it turns out that you are not the vehicle’s true owner and the rightful owner or lienholder suffers a financial loss because you were issued a bonded title. It also provides a source of funds to compensate the rightful owner for that loss.
You can’t do much with an unregistered vehicle, and you can’t register an untitled vehicle. So if that’s the situation you’re in, you’re going to need to purchase a lost title bond. The required bond amount will be established by DMV at 1.5 times their valuation of the vehicle.
Getting a bonded title is not the easiest process. TXDMV understandably wants to make sure that the vehicle really belongs to you before issuing a bonded title.
You’ll need to apply for a bonded title and wait for TXDMV to declare you eligible and tell you the required bond amount. That application process may involve getting a VIN inspection done on your own and submitting the results along with your bonded title application.
It’s possible that someone could pop up during the three-year duration of your Texas lost title bond and prove their ownership of the vehicle. That’s why TXDMV requires a title bond in the first place. They don’t want to pay damages for having issued you a bonded title. Instead, the injured party would file a claim against the surety bond.
Once the surety bond company is satisfied that the claim is valid, they will pay it on your behalf. That payment is made against the line of credit that the issuer established for you in the required bond amount when you purchased the bond. The terms of the surety bond agreement, a legally binding contract, make you solely responsible for paying all valid claims and obligate you to repay the surety bond company.
How much you’ll pay for a Texas lost title bond depends on the required bond amount. Bonds up to $6,000 are sold for a flat cost of only $100, and bonds of $6,000 up to $25,000 cost an extra $15 for every $1,000 of additional coverage. Any Texas lost title bond above $25,000 goes through underwriting to come up with a premium rate based largely on the applicant’s personal credit score.
Request a convenient online quote today, or call us to discuss the Texas lost title bond you need to obtain a bonded title for your vehicle.
