You cannot register or sell a vehicle (including a motorcycle or motor home) unless you have a title showing you as the legitimate owner. There is a process through which you can obtain a bonded title�a title with a surety bond attached�that will allow you to register your vehicle or sell it to someone else.
Learn everything you need to know about the North Carolina bonded title process below, and contact Single Source Insurance to get the bond you need today.
What Is a Bonded Title?
There are several reasons why you might not have a title: perhaps you were never given one when you purchased the vehicle, or you were given one and lost it before it was properly registered in your name, or you were given a title that is defective in some way.
A title bond protects the state and any previous owner from financial loss if it can be proven that you should not have been issued a title.
Who Needs a Bonded Title?
You do not need a bonded title if you once had a title that was in your name but are now unable to find it. It�s relatively easy to get a replacement title certificate from the DMV. You only need to execute the following bonded title process if you never had a title in your name.
If you never had a title for the vehicle, or the title is defective in some way, you�ll have to apply for a bonded title.
How Does the Process Work?
There are several steps you�ll need to take before you can even submit an application for a bonded title in North Carolina:
- Contact your local DMV office to make sure you�re eligible for a bonded title.
- Complete the Title Application and Affidavit of Facts to Accompany Indemnity Bond, which you can download from the North Carolina DMV website or obtain as a hard copy from your local DMV office. Be sure to sign in the presence of a notary public.
- Have a vehicle inspection performed by a North Carolina DMV License & Theft Bureau Inspector. You will need to show the completed Title Application and Affidavit of Facts at the time of the inspection.
- The inspector will verify the VIN and odometer reading and make sure the vehicle has not been reported as stolen. Hold on to the completed inspection form.
- Get your vehicle appraised, and use that appraisal to calculate your required bond amount (1 � times the appraised value). You can visit a DMV license plate agency or call the North Carolina Customer Contact Center at (919)715-7000 to get the appraised value of the vehicle from the current Value Schedule. Note that if the vehicle is a motor home or is not listed in the Schedule, you�ll need to get appraisals from two different North Carolina dealers on the dealers� letterhead.
- Purchase a 3-year North Carolina Lost Title Bond in the required amount from a surety company licensed to operate in North Carolina.
- Submit the bond along with the completed Title Application, Affidavit of Facts, and inspection report to your local DMV.
What Happens if a Claim is Filed?
When you get a bonded title, it�s like taking an oath that you are the rightful owner of the vehicle. If someone surfaces during the three-year term of the bond and can prove an ownership interest in the vehicle, that person can file a claim against the bond and be compensated for the financial loss resulting from you having been issued a bonded title to which you weren�t entitled.
The surety company will verify and then settle and pay the claim. However, the bond indemnifies the surety company and requires you to reimburse the surety for any claims paid on your behalf.
What Does It Cost?
Surety bond premiums are calculated as a small percentage of the required bond amount. At Single Source Insurance, all North Carolina 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.
Understanding the Costs of Obtaining a Bonded Title in North Carolina
You can count on the bonding experts at Single Source Insurance to get you the surety bond you need in order to obtain a bonded title for your vehicle in North Carolina. Contact us today to request a quote.