Need to get a title for a vehicle but can’t prove you own it? You might need a title bond. A title bond essentially guarantees that you’re the rightful owner, even without the usual paperwork.
The cost of a title bond isn’t the full bond amount; it’s just a percentage of it. So, how is that percentage figured out? And what makes it go up or down?
This article breaks down exactly how title bond costs are determined and what factors influence the price you’ll pay.
How much does a bonded title cost?
Title bonds usually cost a percentage of the total bond amount, usually around 1.5% of what the vehicle is worth.
Vehicles with low values (say, under $4,000) might have a flat fee. For example, a $6,000 bond might cost $100.
For higher-value vehicles, the cost is often calculated per $1,000. For example, you might pay $15 for every $1,000 of the bond amount (which works out to 1.5%). So, an $8,000 vehicle could require a bond that costs $120.
What factors affect the cost of a title bond?
Several factors influence the price you’ll pay for your title bond. Here are a few things that will affect how much you’ll pay:
Vehicle appraisal value
The appraised value of the vehicle is one of the biggest factors in figuring out the bond amount. To be accepted, the appraisal must come from a source approved by your state’s DMV, such as a licensed vehicle dealer or a certified appraiser.
Bond amount required by your state
Bond requirements vary widely from state to state, so check your state DMV’s website for the exact rules where you live.
Many states require a bond amount that’s 1.5 times the vehicle’s appraised value, while other states, such as Georgia, Florida, and California, require a bond that’s twice the vehicle’s value.
Personal credit score
For a standard bond amount, a credit check may not be required. However, if you need a higher bond amount, the bonding agency may perform a soft credit check, and a poor credit score could mean you’ll pay a higher premium.
How to get a title bond
- Research your state’s requirements. Each state has different rules about title bonds.
- Get an appraisal. You’ll need to have the vehicle appraised by a state-approved appraiser.
- Apply for a bond. Find a surety bond company that operates in your state.
Wrapping Up
As you can see, the cost of a title bond depends on the value of your vehicle, requirements set by your state, and, sometimes, your credit score.
To ensure you get the correct information and find a reputable surety bond company, check with your state’s DMV for specific guidelines and requirements.