Overview of Louisiana Auto Title Company Bond Requirements
This type of bond is required of auto title companies in Louisiana by the Department of Public Safety and Corrections. It must be posted when applying for a license from the department. The amount of the bond is $100,000 for companies with one location, and $125,000 for companies with two or more locations.
The purpose of the bond is to guarantee that such companies will comply with the provisions of the LRS 32:735, and in particular that they will conduct business honestly and report sales taxes collected by the company.
If these provisions are violated by the company, a bond claim can be made against their bond to compensate claimants (the state or the public) who have suffered losses as a result. Bond claims can be as high as the full bond amount, also called the penal sum.
For first-time bond applicants, our detailed ‘What is a surety bond’ guide is a very good resource that can tell you all you need to know about bonds!
Find out more about the cost of your bond, what bond claims are, and how to get bonded below!
If you have any further questions about the bonding requirements for title companies in Louisiana, call us at 866.450.3412!
The cost of your bond is equal to only a small fraction of the full amount of your bond. The bond amounts for this bond are $100,000 or $125,000 depending on the number of locations your company has.
How much exactly you will need to pay for your bond will depend on your personal credit score, along with other financial information which your surety will review when you apply. Typically, applicants with high scores, upward of 700 FICO, get the lowest possible rates on their bonds.
For such applicants, the rate at which they can obtain this bond is between .75% and 1.5% of the total bond amount.
Try our bond calculator to get a quick estimate of the possible cost of your bond or see the table below for a tentative rate based on credit score.
See the section on getting bonded below for more information regarding an exact quote!
Surety Bond Cost Calculator
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|Bond Type||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Company with a single location||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
|Company with multiple locations||$125,000||$937.5-$1,875||$1,250-$3,125||$3,125-$6,250||$6,250-$12,500|
Bad Credit Bond Program
You can get bonded quite easily, despite having a low credit score!
Our Bad Credit Program is designed to make bonds available to applicants who have lower credit, and who may struggle with getting bonded. The only difference to the bonds we make available to applicants with higher scores are the rates at which different applicants can get bonded. To get a bond with low credit, you may have to pay a slightly higher rate on your bond. Bond rates are not final, and by improving your credit score, you can get bonded in the future at better rates.
To find out more about this program, and to request a quote, see the program page!
This bond is conditioned upon the compliance of the title company with the provisions of Title 32 of the LRS. In particular the bond is conditioned upon the faithful and honest execution of the company’s obligations, as specified in the LRS. Under the bond, the company is also require to “timely file with the office of motor vehicles all applications delivered to the auto title company for filing, and timely remit all fees and taxes collected.”
If the company violates any of the above conditions, a claim can be made against its bond to request compensation for damages or losses caused by the company as a result. Under the bond agreement, compensation extended by the surety can be as high as the full bond amount. When a bond claim is made and covered by the surety, the bonded company is the responsible to reimburse the surety in full.
Given the high amount of this bond, a claim can potentially lead to great expenses for title companies, as well as various other complications. Therefore, it is advised that title companies always steer clear of situations that could give rise to a claim!
Get Your Bond Here!
Want to get started with your bond application? Complete our application form and we will provide you with an exact quote on your bond for free! We will also provide you with full information on completing your application.
It takes about two working days for a bond to be issued, once the full application has been submitted. Once your bond is issued, we will send it to you via post and email!
Call us at 866.450.3412 anytime if you want to speak to one of our agents regarding this bond or any other bond-related matters!