Texas Bonded Title
- Also known as a Texas title bond or a lost title bond
- To be posted to the Texas Department of Motor Vehicles to transfer vehicle ownership
- Grants protection to the state and public, such as previous or subsequent owners
- Offers compensation up to the full amount of the bond
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How much does a Texas bonded title cost?
The cost of the Texas DMV bonded title depends on the amount of the bond, which the Texas Department of Motor Vehicles (DMV) sets on a case-by-case basis. The amount of your bond is usually equal to 1.5 times the value of the vehicle that you want to issue a new title for.
The value of your vehicle is determined by the DMV through the Standard Presumptive Value calculator, which you can find on the DMV website. If the calculator can’t determine the value of your car, the DMV will refer to a national reference guide. If that’s not possible either, you’ll be required to obtain an appraisal from a licensed dealer or a licensed insurance adjuster. Based on this appraisal, your bond amount will be determined.
Once you know the amount you need to get bonded for, you can apply with a surety to issue a bond for you. Once you apply, the surety will provide you with a quote for your bond rate, which typically is a small percentage of the whole amount. So if the value of your car is $55,000, according to the DMV, and you get a 1% quote, you will need to pay $550 for your Texas title bond.
The exact percentage of your rate is determined by the surety based on your personal financial indicators, such as your credit score and financial statements. These give the surety an idea of how much risk is involved in providing a bond to you. The higher your credit score, for example, the lower your rate is likely to be. Applicants with high credit scores (700 FICO or above) are usually offered a premium rate between 1% and 3% of their bond amount.
Learn all about how sureties determine applicants’ rates in our comprehensive surety bond cost guide.
Options for applicants with bad credit
If you have a low credit score you can still get a Texas bonded title– thanks to our Bad Credit Program. Our program allows applicants with lower credit scores, who need to transfer ownership of a vehicle using a bonded title, to get the bond they need.
Getting a bond with lower credit is just as easy; the only difference is that bonds under this program are issued at slightly higher rates. Depending on your particular situation, you can expect to get a bond at a rate between 3% and 10% of the total bond amount.
What’s the purpose of a Texas title bond?
The title bond, also known as a “lost title bond,” is a guarantee in cases when the proof of ownership of a vehicle must be replaced– for example when the vehicle’s title has been lost. The Texas title bond is an agreement between the owner of the car transferring ownership through the bonded title procedure, the Texas DMV, and the surety bond company. It guarantees protection and financial compensation to the state DMV (which issues a new title) and the public: in this case, previous or future owners of the vehicle.
If the owner of the replaced title is found to be in breach of the surety bond agreement, a claim can be filed against their bond. The surety company which has issued the Texas title bond must then investigate the claim and eventually compensate the claimant. In turn, under the conditions of this agreement, the owner of the vehicle must then repay the surety for its compensation.
Below you can find examples of the conditions under which a claim can be filed against someone’s Texas bonded title.
Texas bonded title holders
According to the Texas bonded title form (VTR-130-SB), a claim can be made by previous or subsequent owners of the vehicle against the bond:
- If damages, losses or expenses are caused due to the issuance of the new title for which the person has applied
- If there are any defects or an undisclosed security interest upon the right, title and interest of the applicant in and to the vehicle
How to apply for a Texas bonded title?
The Texas bonded title process goes through three stages.
You must first verify that you meet the requirements to apply for a new title. To apply you need to be a Texas resident, military personnel stationed in Texas, or own a vehicle which was last titled in Texas.
If you qualify, you must pay an administrative fee of $15 and submit the following documents to the nearest Regional Service Center of the Texas DMV:
- А statement of Fact for Bonded Title
- Supporting evidence of your ownership of the vehicle
- Photo ID
Once your initial documentation is reviewed and accepted, you’ll receive a letter asking you to obtain a Texas title bond in the amount determined either by the SPV calculator, the national reference guide, or an appraisal. You have one year from the date of the letter to obtain your bond from an accepted surety bond agency in the state.
Once you get your bond, you have 30 days to submit it to the Regional Service Center of the DMV, along with the documents described in Stage 1, and the letter you received in Stage 2.
You must also submit:
- A completed Texas bonded title application
- A weight certificate for your vehicle (if commercial)
- A customs document if the vehicle is imported (US DOT HS-7)
- A vehicle inspection report if your vehicle has previously been titled out-of-state
Make sure to contact the Texas DMV for detailed information concerning your application for a Texas bonded title.
Contact us at (866)-450-3412 If you’d like to know more about the Texas title bond and the bonding requirements. We will be happy to help!