Michigan Title Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Michigan title bond needs.
What Are They?
A Michigan title bond, sometimes called a lost title bond, is the prerequisite for obtaining a bonded title that will allow you to register, sell, donate, or otherwise assign ownership of a vehicle for which you currently do not have a title. While most people think of a vehicle title as something pertaining only to cars and trucks, Michigan also requires titles for watercrafts, snowmobiles, and manufactured homes.
With a bonded title, you can do anything that a regular title would allow you to do. And therein lies the problem. If you were to obtain a bonded title and subsequently sell, donate, or be involved in an accident that damages the vehicle, but it turns out that you should not have been issued a bonded title, the state of Michigan could be held liable.
A title bond is your guarantee that you own the vehicle and should be issued a bonded title. That guarantee includes your promise to pay damages to the rightful owner if someone else can prove their ownership during the three-year duration of your Michigan title bond. Therefore, the title bond provides financial protection both for the state and for the rightful owner if you should not have been issued the bonded title.
Who Needs Them?
Anyone lacking a valid vehicle title will need to obtain a bonded title in order to do anything with the vehicle, and that will require the purchase of a Michigan title bond. Reasons you may not have a vehicle title include:
- You were not given a title when you purchased the vehicle, even if you did receive a bill of sale.
- You were given a title that was improperly assigned, damaged, or is invalid for any other reason.
- You were given a title, but it was lost or stolen before you were able to register the vehicle in your name.
If the title for a vehicle already registered to you was subsequently lost or stolen, you can apply for a replacement title without having to obtain a title bond. You also don’t need to purchase a title bond for vehicles that are 10 years old or more and valued at $2,500 or less.
The required bond amount is established by the Michigan Department of State’s Vehicle Title Division (the “obligee” requiring the bond) at twice the vehicle’s current appraised value.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
When you purchase a Michigan title bond, the surety bond company (the “surety” for short) establishes a line of credit in the required bond amount. A party who proves ownership of the vehicle during the three-year bond period can file a claim against your Michigan title bond for a financial loss resulting from you having been issued a bonded title for a vehicle you don’t really own.
The surety will pay a valid claim on your behalf, using your line of credit. However, as the “principal” in the surety bond agreement, you are legally obligated to repay that debt to the surety. If there are no claims, you can obtain a regular (non-bonded) title at the end of three years.
What Do They Cost?
Surety bond companies charge a flat fee of $100 for Michigan title bonds in amounts up to $6,000. That fee goes up by an additional $15 per $1,000 of coverage for bond amounts between $6,000 and $25,000. Bonds for more than $25,000 are subject to underwriting, and the primary factor in determining the premium rate is the principal’s personal credit score.
Get a Quote
Our surety bond professionals will get you the Michigan title bond you need at a competitive rate.