Alabama Lost Title Bond

Alabama Lost Title Bond

Alabama Lost Title Bond


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What is an Alabama Lost Title Bond?

Alabama Lost Title Bonds are required by the state of Alabama’s Department of Revenue to obtain your title and register your vehicle, boat, RV, mobile home or trailer.  The bond ensures that you are the rightful owner of the vehicle, Mobile home, trailer etc. The lost title bond guarantees damages up to the bond limit for a legitimate title holder that may surface in the future with a valid claim to the vehicle, Mobile home, boat or trailer.


Different parts of a bond:

 The bond is required when The Obligee (obligator) is the entity requiring you to get the bond.  There are 3 parts to a surety bond. The Principal, The Surety Company, and the Obligee. The Principal is the business or individual applying for the Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

 

Try our 100% Secure Online Application to get the Lowest Lost title bond rates in all 50 States.


Program:

You can buy your bond online immediately, with no credit check for most Lost Title Bonds.


How much does a Lost Title Bond cost?

For Lost Title Bonds under $5,000 the cost of the bond is $100. For bonds over $5,000 the rate is 1.5%


Lost Title Bond Information and Requirements

  • The original outstanding title with the assignment completed listing the applicant as buyer.
    • If the original title is not completed listing the applicant as buyer, then the following must also be provided:
      • a copy of the Bill of Sale containing the VIN, OR
      • most current registration in the name of the applicant
    • If the applicant does not have the original outstanding title, the following must be provided:
      • a copy of the Bill of Sale containing the VIN, OR
      • most current registration in the name of the applicant, OR
      • insurance settlement

Standardized bond amounts (below) will be underwritten by the insurance company.
The owner normally pays the insurance company a percentage of the bond amount.
Insurance companies often determine the percentage based on the owner's credit worthiness.
On average, the insurance company may charge $15 per $1,000 of the bond amount.

 

  1. Trailers:
    1. Less than five (5) model years old – $25,000
    2. Five (5) model years old but less than ten (10) model years old - $10,000
    3. Ten (10) or more model years old – $5,000
  2. Passenger vehicles and pickup trucks:
    1. Less than five (5) model years old – $50,000
    2. Five (5) model years old but less than ten (10) model years old – $25,000
    3. Ten (10) or more model years old – $10,000
  3. Trucks, buses and recreational vehicles:
    1. Less than five (5) model years old – $100,000
    2. Five (5) model years old but less than ten (10) model years old – $50,000
    3. Ten (10) or more model years old – $25,000
  4. Motorcycles:
    1. Less than five (5) model years old – $25,000
    2. Five (5) model years old but less than ten (10) model years old – $10,000
    3. Ten (10) or more model years old – $5,000
  5. Manufactured homes *:
    1. Less than (10) model years old – $50,000
    2. Ten (10) or more model years old – $25,000

 Administrative Rule 810-5-75-.34 provides that when the owner(s) of a vehicle deemed

“salvage,” applies for a certificate of title under surety bond, the bond amount must be:

  • 25% of the bond amount for vehicles less than ten (10) model years old
  • 20% of the bond amount for vehicles ten (10) or more model years old


    Don't pay too much! Get your Bond Fast, and Easy with the best price! Click here to start the Lost Title Bond Application process.

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