Lost title / defective title bond

What it is

A lost (or defective) title bond — sometimes called a certificate-of-title bond — lets you register and title a vehicle when the original paperwork is missing or flawed. It protects prior owners and lienholders: if someone later proves a valid claim to the vehicle, they can recover against the bond, which you reimburse.

Who requires it

• •State titling agency (DMV) — Many states issue a bonded title when proper documentation is unavailable, requiring a surety bond for a set multiple of the vehicle’s value.

What drives the price

• •Vehicle value — The required bond amount is typically a multiple of the vehicle’s value, which drives the premium.
• •Your credit — For smaller bonds the rate is mostly credit-based.

How surety bonds work

A surety bond is a three-party agreement between you (the principal), the government agency or party requiring it (the obligee), and the surety company that backs it. It is not insurance for you — it protects the obligee and the public. If a valid claim is paid on your bond, you are responsible for reimbursing the surety. Premium is a small percentage of the bond amount and is driven mostly by the required bond amount and the applicant’s credit.

Frequently asked questions