Certificate of title bond cost
Unregistered vehicle owners are required to execute a certificate of title bond by the New York Department of Motor Vehicles. The amount of the bond is 1.5 times the value of the vehicle. The length of the bond runs for 3 years before it must be returned. It can be returned prior to the end of 3 years if the vehicle is no longer registered in the state and there are no outstanding claims against the bond.
You can obtain a certificate of title bond without a review of your credit report if the bond amount is $25,000 or less. If the bond amount is less than $6,000, you can receive the bond for just $100!
If the New York certificate of title bond is greater than $25,000, your rate is calculated after a review of your credit report. Take a look at the table below to find your rate.
Why this bond
Certificate of title bonds establish liability for the principal (previous vehicle owner) in the event that any expenses or losses are incurred on the obligee as a result of previous ownership. Title 10, Article 46 of the New York Vehicle and Traffic Law establishes the basis for which obligees can file a claim against this bond.
If an obligee files a valid claim against this bond, the surety will cover for any damages up to the penal sum of the bond.
By posting this bond, the seller and buyer of the vehicle agree that, to the best of their knowledge, the vehicle is in good standing and was not acquired under fraudulent conditions.
Certificate of title bond details
The New York Department of Motor Vehicles obligates owners of unregistered vehicles within the state to file a certificate of title bond. The bond requirement depends on the current value of the vehicle. The bond amount is 1.5 times the value of the vehicle as determined by a licensed appraiser within the state.
All certificate of title bonds run for 3 years before they must be returned. If the vehicle is no longer registered within the state prior to the conclusion of 3 years, the bond may be returned if there are no pending claims against it. There is no cancellation clause associated with this bond.
Why this bond
Since the bond amount depends on the current value of your vehicle, you must find a licensed appraiser to determine the value of your vehicle. Once this is done, you can submit a title application to the New York Department of Motor Vehicles.
You can find a copy of the application form in the “Additional information” section for more information.
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