Texas Title Bonds

Surety Bond Professionals is a family-owned and operated bonding company 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 Texas title bond needs.

What Are They?

A Texas title bond is a surety bond required by the state when a vehicle you own but have no title for doesn’t qualify for a new title based only on the documentation you have. The bond is a requirement for being issued a bonded title that will allow you to register, sell, donate, or otherwise transfer ownership of the vehicle, just as a regular title would.

The title bond provides financial protection for the Texas Department of Motor Vehicles (DMV) and for any party who later surfaces and can prove ownership of the vehicle or possession of a lien against it. The bond is your guarantee that you will compensate that party for any loss incurred as a result of the bonded title being issued to you without proper proof of ownership.

Who Needs Them?

You’ll need a bonded title if you do not have a title, applied to the DMV for one based on whatever evidence of ownership you have, and were informed that you are eligible only for a bonded title.

The most common reasons for not having a standard title are:

  • You never received a title when you acquired the vehicle
  • Were given a title that was defaced, altered, of forged, making it invalid
  • Received a title that was lost or stolen before the vehicle could be registered in your name

You do not need a bonded title if yours was lost or stolen after the vehicle was registered in your name. That situation requires only a replacement title.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

How Do They Work?

After you’ve submitted to the DMV a completed Statement of Fact for Bonded Title along with supporting evidence of ownership (e.g., bill of sale, receipt, or canceled check) and a copy of your photo ID, you’ll get a rejection letter if you need to purchase a title bond and obtain a bonded title. (NOTE: If the vehicle was last registered in another state, you’ll need to have an inspector at a Texas Safety Inspection Station fill out a form verifying the VIN and submit that as well.)

The rejection letter will tell you that the required title bond amount must be to equal 1 ½ times the vehicle’s appraised value. Once you’ve submitted the title bond to DMV, you’ll be issued a bonded title for the vehicle. The bond must remain in force for three years.

If at any time during that three-year period someone can prove their ownership of the vehicle you have claimed as your own, you will be legally obligated to compensate them for their financial loss. Should this occur, the company that issued the title bond will most likely go ahead and pay the rightful owner’s claim, but you are legally obligated to reimburse the company in full.

If no claims are filed against your title bond by the time it expires, you will be issued a standard title.

What Do They Cost?

The cost to obtain a title bond of $6,000 or less is only $100. For title bonds of $6,000 to $25,000, the cost goes up by $15 per $1,000 of coverage. For bond amounts over $25,000, underwriting will be involved. The underwriters will look at your personal credit score and a few other factors to determine your premium rate.

Get a Quote

Our surety bond professionals will get you the Texas title bond you need at a competitive rate.