Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Colorado title bond needs. Learn more about the Colorado bonded title process, below.
What Is a Bonded Title?
A Colorado bonded title is the solution for someone who purchased a vehicle through a private sale and either did not receive a title, received one that was improperly assigned or otherwise defective, or that was lost or stolen before the vehicle could be registered in the new owner’s name. Without a valid certificate of title, there is no way to insure, register, or transfer ownership of a vehicle to someone else.
All of those things can be done with a Colorado bonded title—a title that is backed by a surety bond that indemnifies the state if it later turns out that a bonded title should not have been issued. The bond also guarantees payment of damages to a lienholder or other individual who comes forward with proof of ownership while the Colorado title bond is in force or to a subsequent purchaser who incurs a loss as a result.
If a Colorado bonded title remains uncontested, at the end of the title bond’s three-year term, it can be replaced with a standard certificate of title.
Who is Eligible for a Bonded Title?
A bonded title can be issued only for a motor vehicle that is not a salvage vehicle and is in your possession within the state of Colorado. It’s best to explain the circumstances at your county DMV office and find out whether you may qualify to receive a Colorado bonded title.
You don’t need a Colorado bonded title if the vehicle in question was ever registered in your name. If that’s the case and your certificate of title has since been lost or stolen, all you need to do is apply at your nearest county DMV for a duplicate certificate.
How Do I Get a Bonded Title?
The process for obtaining a Colorado bonded title is a bit complicated. The main steps are:
- Have a VIN inspection done by a certified P.O.S.T. (Peace Officers Standards and Training) inspector, who will complete Form DR 2704.
- Fill out an affidavit of intended use, Form DR 2489A.
- Submit a request for a Colorado title record. You’ll receive information on any prior titleholder or existing lien holder. Contact them by certified mail and complete PS Form 3811-A as proof that you have done so. You must obtain a lien release for any active lien before you can apply for a bonded title.
- Determine the vehicle’s current appraised value.
- Purchase a Colorado title bond for twice the vehicle’s appraised value.
- Complete Form DR 2394, Bond Statement Guide & In Lieu of Bond Affidavit Form.
- Submit all completed forms and the title bond certificate to your local DMV office. Upon approval by DMV, you’ll receive a Colorado bonded title.
How Are Title Bond Claims Paid?
The terms of your Colorado title bond make you legally responsible for paying valid claims. The normal practice is for the surety company to pay a claim on your behalf, but you must then repay that debt to the surety.
How Much Does a Title Bond Cost?
The most you will pay for a Colorado title bond for $25,000 or less is $290. Only bonds for more than $25,000 must go through underwriting. The premium rate will be based primarily on your personal credit score. Good credit reassures the bonding company that you will reimburse them for any claim paid on your behalf.
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