You’ve gotten a new vehicle, or at least it’s new to you. However, you don’t have the official certificate of title paperwork for that vehicle. You may also have had a vehicle for a long time, only to discover that you do not have paperwork. If this sounds like you, you might be eligible for an Alabama Bonded Title.
What is an Alabama Bonded Title?
An Alabama Bonded Title is a regular title but it is marked “bonded”, meaning that it has a surety bond attached to it.
When you get a bonded title, you are promising that you are the true owner of the vehicle. If someone comes forward later on and says that they are the owner of the vehicle and that you should not have been granted a bonded title, they can make a claim on your surety bond.
When You Need an Alabama Bonded Title
- You bought a car and never received a title
- You bought a car and only received a bill of sale
- You bought a car and received an improperly assigned title
- You bought a car, received the original title, then lost it before transferring it into your name*
*If you had the original title in your name at one point in time and your vehicle was last titled in the state of Alabama, you do not need to get an AL Bonded Title. You can simply get a duplicate certificate of title by completing an Application for Replacement Title and paying a $15 replacement title fee.
Not sure if you need an AL Bonded Title? Check out this awesome infographic.
How to get an Alabama Bonded Title
Step #1: Call DMV to make sure you are eligible
To determine if you are eligible, call your local DMV. If they say you are eligible, move on to Step #2.
Note: You cannot get an AL Bonded Title if your vehicle is more than 35 years old. This exemption became effective in January of 2012.
Step #2: Have DMV run a vehicle record search on your vehicle
This will determine if there are any previous records on your vehicle. You may find that your vehicle has a clean history, in which case you can proceed and get a bond.
If your vehicle has a lien on it, you will need to contact the previous owner and have the lien released before moving forward.
Step #3: Complete an Application for a Bonded Title
You can find this application online.
If your application is approved, the state of Alabama will determine the bond amount you need.
The standardized bond amounts are as follows:
Passenger vehicles and pickup trucks:
- Less than 5 years old: $50,000 bond
- Between 5 and 10 years old: $25,000 bond
- 10 years or older: $10,000 bond
Trucks, buses, and recreational vehicles:
- Less than 5 years old: $100,000 bond
- Between 5 and 10 years old: $50,000 bond
- 10 years or older: $25,000 bond
Motorcycles:
- Less than 5 years old: $25,000 bond
- Between 5 and 10 years old: $10,000 bond
- 10 years or older: $5,000
Step #4: Purchase Alabama Lost Title Bond
Purchase a bond by contacting a surety bond company who is licensed to issue bonds in Alabama.
Surety Solutions, A Gallagher Company does not issue Certificate of Lost Title Bonds
The price you pay for your bond will be $100, $150, $375, or $750 depending on your bond amount.
$5,000 bond: $100
$10,000 bond: $150
$25,000 bond: $375
$50,000 bond: $750
Purpose of a Lost Title Bond
When you get a bonded title, you are promising that you are the true owner of the vehicle. If someone comes forward later on and says that they are the owner of the vehicle and that you should not have been granted a bonded title, they can make a claim on your bond. If the claim is determined to be valid, the surety company would pay the person a fair amount. It would then be your responsibility to repay the surety.
Curious about what would happen if someone made a claim on your bond? Check out this resource.
Step #5: Apply for a bonded title at your local DMV
After purchasing your bond, take it to your local DMV to apply for your bonded title.
You might also need to provide other evidence of ownership, such as a bill of sale or cancelled check.
Questions?
Contact the Alabama Motor Vehicle Division Title Section at [email protected]
Do Alabama Bonded Title Expire?
Yes, your AL Bonded Title is valid for 3 years. If after 3 years, no one comes forward and makes a claim on your Alabama Lost Title Bond, you will be issued a standard certificate of title.
Curious about what would happen if someone made a claim on your bond? Check out this resource.
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