Tennessee 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 Tennessee title bond needs.
What Are They?
Purchasing a Tennessee title bond (also referred to as a lost title bond) will enable you to obtain a bonded title for a vehicle you own but never registered in your name. This is likely because you don’t have a valid certificate of title for it. With a bonded title, you can do anything with the vehicle that a standard title would allow you to do, such as insure, register, sell, and donate it.
A Tennessee title bond remains in force for three years, during which time it provides financial protection or compensation for:
- The Tennessee Department of Revenue, if it turns out that a bonded title should not have been issued.
- A previous owner or lienholder.
- A purchaser who buys the vehicle while the bonded title is in force.
If three years pass from the issuance of a Tennessee bonded title without anyone coming forward with proof of ownership of the vehicle in question, the bonded title can be replaced with a standard certificate of title.
Who Needs Them?
The most common reasons for needing a Tennessee title bond and a Tennessee bonded title are:
- The seller did not give you a title when you purchased the vehicle.
- The seller gave you a title that was improperly assigned or damaged in some way that renders it defective.
- The seller gave you a title, but it was lost or stolen before the vehicle could be registered in your name.
You only need to purchase a Tennessee title bond if the vehicle lacking a title is less than 30 years old and has an appraised value greater than $3,000. A vehicle that’s 30 or more years old or a vehicle of any age worth $3,000 or less does not need a bonded title. They only require a certificate of ownership, which does not require a title bond.
A Tennessee title bond has a three-year term and must be for an amount that is 1.5 times the vehicle’s appraised value according to a local licensed dealer or an online source such as the NADA guide.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
It’s possible that during the three-year term of your Tennessee title bond, someone will surface with proof of ownership of the vehicle you have claimed as your own. You may have even sold the vehicle in the meantime. The previous owner or lienholder and anyone who purchased the vehicle from you could both have valid claims for damages incurred as a result of you having been issued a bonded title.
The terms of the surety bond agreement legally obligate you, as the bond’s “principal,” to pay all valid claims. What typically happens, though, is that the surety bond company (the “surety” for short) will make payment directly to the claimant and then collect reimbursement from you. It’s a practical arrangement that ensures prompt payment of a claim and gives you some time to repay the debt to the surety.
What Do They Cost?
Tennessee title bonds for $25,000 or less are sold for a flat premium based on the amount of the bond. You might pay a premium as low as $100 for the entire three-year bond term of the bond.
Bonds for more than $25,000 are subject to underwriting, and the premium rate is based primarily on the principal’s credit score. A high credit score suggests that the risk the surety assumes in extending credit to cover a claim is minimal, so the premium rate will probably be in the standard market rate range of 1% to 2% of the required bond amount.
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Our surety bond professionals will get you the Tennessee title bond you need at a competitive rate.