Texas Motor Vehicle Title Bond

What a Texas title bond does

When you hold a vehicle but cannot produce a properly assigned certificate of title, Texas will not issue a new title on your word alone. Under Tex. Transp. Code § 501.053, the state accepts a surety bond in place of the missing proof of ownership. The bond, which Texas calls a bonded title, 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 Texas Department of Motor Vehicles (Regional Service Centers) and County Tax Assessor-Collectors 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. Texas Department of Motor Vehicles (Regional Service Centers) and County Tax Assessor-Collectors 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 Texas?

Texas fixes the penal sum at 1.5× vehicle value. We round up to the next $1,000 because sureties issue in whole thousands and the DMV never objects to a bond that exceeds the requirement.

At $20 per $1,000 that $13,000 bond carries a premium of $260.00, plus the $85 administrative fee, for a total of $345.00 covering the full 3-year term. Nothing renews and nothing is refunded; the premium is fully earned when the bond is executed.

Where the value comes from. TxDMV uses the Standard Presumptive Value first; if none, a national reference guide; if neither, an appraisal on Form VTR-125 by a Texas-licensed dealer or insurance adjuster dated within 30 days. Vehicles 25 or more years old may use an appraisal; if appraised under $4,000 the bond is computed on $4,000. Trailers may use fixed values of $4,000 (under 20 ft) or $7,000 (20 ft and over).

How to get a bonded title in Texas

1. The applicant must be a Texas resident or military stationed in Texas and have possession of a complete vehicle (motor, body and frame).
2. The $15 application goes to a TxDMV Regional Service Center, which issues a Notice of Determination stating the bond amount; the bond and Form 130-U then go to the county tax office.
3. No lien may be outstanding unless it is 10 or more years old or released.
4. A VTR-68-A law enforcement VIN inspection is required if there is no Texas record.
5. Salvage and nonrepairable vehicles are excluded, and assembled vehicles need an ASE inspection.
6. The surety must be authorized in Texas.

Once the bond is in hand, file it with the title application at Texas Department of Motor Vehicles. 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.

Texas 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 →