The California Department of Motor Vehicles may require a Lost Title Bond if your vehicle title is lost or stolen. This bond is obtained when a vehicle owner does not have proof of ownership for their vehicle.This can happen if the original title is lost or stolen, or if the vehicle owner was never given a title by the seller. This may happen if the dealer or auto-lender goes out of business. You may need a Lost Title Bond if the vehicle is too old to have a title or if the vehicle is custom made.
The bond states that the owner of the bond can cover damages to the vehicle. More often than not, the bond is issued for 3 years, and the bond amount must be equal to the fair market value of the vehicle. This can be determined from a dealer appraisal or Kelly Blue Book Value.
Cost of Lost Title Bonds
The cost of the bonds depends on the value of the vehicle that is listed on the bond. Lost Title Bonds don’t usually require an underwriter, and therefore a credit check is hardly necessary when requesting a Lost Title Bond.
Lost Title Bonds may also go by other names, such as:
- Certificate of Title Bonds
- Lost Title Bonds
- Defective Title Bonds