A Maryland Certificate of Title Surety Bond is a financial guarantee that protects vehicle sellers, buyers, lenders and other interested parties when the state cannot be satisfied as to the vehicle’s ownership status or that the vehicle is lien free. The bond protects against expense, loss or damages, including attorney’s fees for any party who is damaged by the state issuing a duplicate title on the vehicle. These vehicles are commonly referred to as having bonded titles. Maryland Transportation Code 13-109 governs these vehicles and surety bonds.
These bonds are required when the state cannot be satisfied on a vehicle’s lawful ownership, or that all security interests have been disclosed. The state has the option of delaying title until documents can be shown to satisfy the state. An alternative is to provide a surety bond protecting any damaged parties.
The applicant for the vehicle title is referred to as the Principal on the bond. The principal makes a payment called a premium to a third-party surety bond company. In exchange for this payment, and the agreement to indemnify the surety for losses, the surety provides a financial guarantee to the state that it will pay damages to any party who is harmed by the state’s issuing of a new surety bond.
Should a claim occur, the surety bond company will be required to investigate and pay the claim promptly. The surety bond company may then seek reimbursement from the principal under the indemnity agreement. By requiring a surety bond, the state is protecting the public. Those damaged by the principal’s action may find it faster and easier to collect from a regulated surety bond company than trying to collect damages from the principal. Surety bonds are not insurance and claims should be avoided.
Maryland requires that vehicle title bonds be in the amount of one and one half times (1.5x) the vehicle’s value as determined by the state. That means a vehicle with a value of $20,000 would need a title bond in the amount of $30,000. Most states will accept a vehicle valuation from either a licensed car dealer, or a recognized source such as Kelly Blue Book.
Maryland Vehicle Title Bonds are very easy to obtain. Amounts $50,000 and less can be purchased online, without a credit check. A person can fill out the application, purchase and print the bond in minutes. To get these bonds, a person should have the year, make, model and Vehicle Identification Number, along with their contact information.
For bond amounts, larger than $50,000, these bonds are still very easily obtainable. They can usually be obtained with a one page application and a credit check.
Maryland Vehicle Title Bonds Cost 1% for most applicants online. For example, a title bond of $20,000 would cost $200. Better pricing can be available for those applicants wanting to submit to a credit check.
Maryland Certificate of Title Bonds must be in place for three years. At the end of three years, the bond will be returned, as long as the state has not been notified of any potential claims. The principal may also surrender the bonded title before three years if they choose or if the vehicle is moved out of the state of Maryland.
Maryland allows a cash deposit instead of a corporate surety bond to secure a vehicle certificate of title. However, this is usually not a good choice. The state will hold onto the cash for the entire three year period. Additionally, the principal may have little to know defense should a claim occur.
The state may allow the registration of trailers with a gross weight under 2,500 pounds with the requiring a title bond. The exception does not apply to campers though.
Maryland Lost Title Bonds are required by the state when ownership or security interest are in question. Fortunately, these bonds can be easily obtained online in minutes to help get the vehicle titled and to protect interested parties. Contact the title bond experts at Axcess Surety anytime for all your surety bond questions and needs.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
