If you've obtained a car but don't have the title, often the MVD will require the new owner to purchase what is known as a motor vehicle bond, or title bond, to insure they won't be held financially responsible should the vehicle be reported stolen.
By purchasing the bond you are making an official agreement with the bonding company that they would pay for the stolen property, and you would in turn owe that money back to them. The low likelihood of this actually happening and the low premium (usually around $100) balance out the high cost of such an event.
If you're required to obtain one, the first step is to get a vehicle inspection from either an MVD or certified Third Party office.* The inspector will provide you with a list of the specific actions and documentation required, among which will be a "Bonded Title Affidavit" and a bond amount. These are what we need to see in order to issue your bond.
Once you have the appropriate paperwork, you can bring (or email) it to us for the bond. MV bonds cost a minimum of $100, but can be more depending on the bond amount specified by the inspector, which is dependent on the vehicle's determined value (bond amounts upwards of around $6,670 will cost$15 for every thousand). The process of issuing the bond usually takes less than half an hour. Cash or check only, please.
Once you receive the bond, bring it to the MVD who will give you your permanent title.
We will keep your bond on file for the full 3 years it is active in case vehicle ownership is challenged, but we recommend you keep a copy as well.
* Some full-service Motor Vehicle centers, like Southwest Motor Vehicle Center and Academy of Driving order the bond for you, in which case you will receive it directly from them. We will still act as your bonding agent though if vehicle ownership is ever challenged.