How much does an Arkansas bonded title cost?
The cost of your bonded title in Arkansas is a fraction of the total amount of the surety bond you need to obtain. This amount will be determined by the Arkansas Office of Motor Vehicles and must, by law, be equal to 1.5 the appraised value of the vehicle that you want a bonded title for.
Once the Office of Motor Vehicles appraises your car and sets your surety bond amount, you can get in touch with a surety bonds agency to get your title bond. The surety agency will provide you with a quote for the bond premium you have applied for. This quote is typically only a small percentage of the whole bond amount. For example, if you’ve been asked to obtain a $15,000 bond and the surety asks for a 1.5% premium, the cost of obtaining your bond will be $225.
The quote you receive for your bond is set by the surety bond company which issues the bond. It determines the exact percentage of the quote on the basis of the financial information it has about you, such as your personal credit score. Though credit score is most important in influencing your rate, other things like your financial statements or assets are also important.
Applicants who have a high credit score– one of 700 FICO or above– can typically expect a rate that is between 1% and 3% of the total bond amount.
Options for applicants with bad credit
Our Bad Credit Program is designed to make surety bonds available to those applicants who need to get a bonded title in Arkansas, but have a low or nonexistent credit score.
The only difference between bonds under this program and those for applicants with higher scores is the slightly higher rate that bad credit applicants need to pay. Although rates are determined on an individual basis, applicants under our Bad Credit Program can expect a rate between 3% and 10% of the total bond amount.
What’s the purpose of Arkansas title bond?
An Arkansas title bond must be obtained in cases when a vehicle’s title is missing, because it was lost or never received, and the current owner wants obtain a title in their name from the Arkansas DFA.
To protect the public and the state from instances in which a vehicle is stolen and a title is wrongly issued to an applicant, the DFA requires all applicants for new titles to obtain a surety bond. The title bond is an agreement between the applicant, the Arkansas DFA and the surety bond company which issues the bond. If it turns out that the title has been wrongly issued and the agreement is violated, a claim can be made against the bond.
The surety bond company then steps in to compensate claimants for any losses or damages, thus protecting the state and public. In turn, the bonded title holder must then repay the surety for its compensation to claimants.
The difference between a bonded title and a replacement title is that the former is issued when you did not have the title in your name at any point (and don’t have or never received a title), while the latter is issued when you lost the title which was already in your name.
For a list of possible causes for a claim against an Arkansas title bond, see below.
Arkansas bonded title holders
Arkansas bonded title regulation states that a claim can be made against a bonded title if:
- Prior owners, lien holders, or subsequent purchasers of a vehicle with a bonded title face expenses, losses or damages (including attorney fees) in relation to the vehicle.
- There is a defect or undisclosed security upon the right, title, and interest of the applicant in and to the vehicle.
How to apply for a bonded title in Arkansas?
To get a bonded title in Arkansas you must complete the following process:
Have your vehicle inspected by a certified law enforcement officer of any city or county in Arkansas or by the Arkansas State Police. Upon completing the inspection, the officer will provide you with a form verifying your motor vehicle identification number (VIN). You will need this form for your application.
Complete the State of Arkansas Statement of Facts for Issuance of a Bonded Title form and submit it to the Office of Motor Vehicles at the DFA, along with the VIN inspection form. Upon processing your documents, the Office will inform you whether you are approved for the issuance of a bonded title or not.
If approved, you will be asked to obtain an Arkansas title bond in the amount specified in the Office of Motor Vehicles’ response to you. The title bond amount will be equal to 1.5 times the value of your vehicle as determined by the Office.
Submit all your papers, along with your title bond and approval forms, to any nearby branch of the Arkansas Office of Motor Vehicles and wait for your final approval to receive a bonded title. If approved, you’ll receive your bonded title by mail.
For further questions regarding the Arkansas bonded title process, make sure to contact the DFA.
To find out more about the bonding requirements for your bonded title in Arkansas, gives us a call us at 866.450.3412. Our surety experts will be happy to help you with the bonding process or provide you with further advice.