What Is a Bonded Title?
A bonded title is pretty much what it sounds like�a title with a bond attached. A bonded title is issued when a person has obtained ownership of a vehicle but for some reason lacks a valid title that will allow that vehicle to be transferred into the new owner�s name and registered. It looks just like a regular title except for bearing the word �BONDED.�
The California title bond itself serves as a guarantee that neither the state of California nor anyone with a prior ownership interest in the vehicle will suffer a financial loss if it turns out that you were given a bonded title that you were not entitled to.
Who Needs a Bonded Title?
Anyone who was not given a title at the time the vehicle was purchased, was given a title and lost it before getting it transferred into their own name, or received a defective title can apply for a bonded title. Simply losing a title that was already in your name doesn�t require a bonded title�only a duplicate title, which is much easier to obtain.
How Does the Process Work?
Here are the steps for obtaining a bonded title in California:
- Fill out a Bonded Title Application, which is available on the California DMV website or from your local DMV office.
- Ask a DMV employee or law enforcement office to complete a Verification of Vehicle form, which confirms the VIN.
- Fill out a Statement of Facts form, also available from the DMV. You�ll need to include certain information about the vehicle, how you came to own it, and why you don�t have the original title.
- For a vehicle weighing 10,000 pounds or less, fill out a Weight Certificate. For a vehicle weighing more than that, a completed Declaration of Gross Weight/Combined Gross Vehicle Weight Form.
- Have a DMV representative inspect the vehicle and fill out an inspection form that verifies the VIN.
- If the vehicle is not going to be operated, fill out a Certificate of Non-Operation/Planned Non-Operation.
- If the vehicle is less than ten years old, complete an Odometer Disclosure statement.
- Have a California licensed auto dealer appraise the vehicle and determine its fair market value. You may also use Kelley Blue Book or another valuation guide to find its current value.
- Purchase a three-year California Certificate of Title Bond for the amount of the vehicle’s appraised value from a surety company licensed to operate in California.
- Submit the bond certificate and all other required paperwork to the DMV. Upon approval, a bonded title will be issued and can be used to register, sell, or junk the vehicle.
What Happens if a Claim is Filed?
With a bonded title, there is a three year period during which someone with an ownership interest in the vehicle can come forward and make a claim on it. The bond agreement makes you, the bonded individual, legally responsible for paying claims. However, the surety company will typically pay any claim up front on your behalf and then turn to you for reimbursement. The terms of the bond indemnify the surety company against liability for claims.
If the three years go by with no claims, the bond expires and will not need to be renewed. You can go back to DMV and request that a clear, unbonded title be issued.
Understanding the Costs of Obtaining a Bonded Title in California
Surety bond premiums are calculated as a small percentage of the required bond amount. At Single Source Insurance, all California bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.
Get The Title Bond You Need
At Single Source Insurance, we can issue most California lost title bonds online in a matter of minutes. Contact us today to request a quote.