Vermont Title Bonds

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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 Vermont title bond needs.

What Are They?

Vermont issues bonded titles to people who have purchased a motor vehicle but lack a proper title that will allow them to register, insure, sell, or donate it. The first step in that process is for you to contact your local Vermont Motor Vehicle Division (VMVD) office, explain your situation, and find out whether you are eligible for a bonded title. A bonded title will enable you to do any of the things you could do with a standard title.

In issuing a bonded title, VMVD is taking a risk, because it’s possible that someone could show up during the three-year term of a bonded title and be able to prove ownership of the vehicle or a previously undiscovered lien against it. It’s likely that such an individual would also be able to prove a financial loss resulting from you claiming ownership.

Requiring you to purchase a Vermont title bond protects VMVD against liability for having issued you a bonded title if it turns out that you didn’t own the vehicle. It also provides a source of funds to compensate the legitimate owner for any financial loss resulting from your actions.

Who Needs Them?

There are several reasons why you might need a title bond that will enable you to obtain a bonded title:

  • You were not given a title when you took possession of the vehicle, though you might have received a bill of sale and/or receipt.
  • You were given a title that was invalid because it was forged, altered, or damaged.
  • You were given a title, but it was lost or stolen before you could register the vehicle in your name.

You do not need a bonded title if the car was already registered in your name before the title was lost or stolen. If that’s the case, you can simply apply for a replacement title at your local VMVD office. You also don’t need a bonded title if the vehicle is more than 15 years old.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

How Do They Work?

Prior to purchasing a Vermont title bond, you’ll need to check with your local VT DMV to make sure that you’re eligible for a Vermont bonded title. You’ll also need to obtain the NADA average trade-in value for the vehicle. The required amount of your title bond is 1.5 times that NADA value. That’s the maximum amount that will be paid to anyone who can prove ownership of the vehicle and substantiate a financial loss caused by you having been issued a bonded title.

If nobody successfully challenges your bonded title during the three years that your Vermont title bond is in force, you will be issued a standard title. But if a valid claim is filed before the bond expires, the surety bond company will pay the claim on your behalf. You must then, by law, reimburse the surety in full. The surety bond’s payment to the claimant is essentially a loan to you—a loan that gets the claimant paid promptly and gives you some time to come up with the funds to repay the surety bond company.

What Do They Cost?

If your vehicle is valued at $6,000 or less, you’ll pay no more than $100 as the premium for a Vermont title bond. You’ll pay progressively more if the vehicle’s NADA value is between $6,000 and $25,000, typically adding about $15 per $1,000 of coverage above $6,000.

Your bond application will only be subject to underwriting if the vehicle is valued at more than $25,000. If that’s the case, your premium rate will be based largely on your personal credit score. With good credit, it’s likely to be as low as 1% of the required bond amount.

Get a Quote

Our surety bond professionals will get you the Vermont title bond you need at a competitive rate.