Alabama Motor Vehicle Title Bond

What a Alabama title bond does

When you hold a vehicle but cannot produce a properly assigned certificate of title, Alabama will not issue a new title on your word alone. Under Ala. Code § 32-8-36, the state accepts a surety bond in place of the missing proof of ownership. The bond, which Alabama calls a certificate of title surety bond, promises that anyone who later proves a better claim to the vehicle (a prior owner, a lienholder, a subsequent purchaser) will be paid their loss up to the bond amount. On the strength of that promise Alabama Department of Revenue, Motor Vehicle Division issues a title in your name. It is a real title: you can register, insure, drive and sell the vehicle. The only difference is a brand on the face of the title that lapses when the bond term runs without a claim.

Three parties sign on. You are the principal. Alabama Department of Revenue and every potential claimant are the obligees. Surety One, Inc. is the surety that guarantees your claim. If the surety ever pays, it looks to you under the indemnity agreement in the application, which is why we ask for evidence of how you came to possess the vehicle before issuing.

How much bond do you need in Alabama?

Alabama does not value the vehicle. The Department of Revenue fixes uniform bond amounts by vehicle class and model-year age under Ala. Admin. Code r. 810-5-75-.34, from $5,000 for an older motorcycle or trailer to $100,000 for a new truck, bus or RV. Choose the class in the calculator and the amount is set; the premium follows from it.

Where the value comes from. No vehicle valuation. ALDOR sets fixed uniform bond amounts by vehicle class and model-year age under Ala. Admin. Code r. 810-5-75-.34; the applicant requests the amount through the ALDOR Surety Bond Portal (MVT 10-1A) and ALDOR issues the pre-filled MVT 10-1 bond form.

How to get a bonded title in Alabama

1. Alabama does not value the vehicle.
2. The bond amount comes from a fixed schedule: passenger vehicles and pickups $50,000 (fewer than 5 model years), $25,000 (5 to 9 model years) or $10,000 (10 or more); trucks, buses and RVs $100,000, $50,000 or $25,000 on the same age bands; motorcycles and trailers $25,000, $10,000 or $5,000; manufactured homes $50,000 (fewer than 10 model years) or $25,000 (10 or more); salvage vehicles 25% of the schedule (under 10 years) or 20% (10 or more).
3. You must apply for the title through a designated agent within 90 days of the bond's execution.
4. The bond must be issued by an Alabama-licensed surety with the power of attorney attached, and the printed MVT 10-1 cannot be altered.
5. Proof of ownership (bill of sale or registration) is required.
6. Motor vehicles more than 35 model years old and trailers more than 20 model years old are exempt from titling, so no bond applies to them.
7. Covers motor vehicles, manufactured homes and vessels.

Once the bond is in hand, file it with the title application at Alabama Department of Revenue, Motor Vehicle Division. The executed bond carries the surety's power of attorney, is signed and witnessed as the state requires, and matches the vehicle description on your application exactly. Any discrepancy between the bond and the application (a transposed VIN digit, a name that does not match your ID) is the most common reason a bonded title is rejected.

Alabama title bond FAQ

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Written and reviewed by C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, founder of Surety One, Inc. and CEO of Janus Assurance Re, with more than thirty years of surety and reinsurance underwriting experience. Author of The Contractor's Guide to Surety Bonds. Reflects state law and DMV practice as of November 5, 2026. More about the author →