For those trying to prove their ownership of a vehicle without a clean title in Alabama, you will be required to jump through an extra hoop to receive such title by obtaining the Alabama Certificate of Title Bond. Whether the title was never transferred, missing information or signatures, simply lost, or you purchased an unclaimed or abandoned vehicle then you will be required by the Alabama Department of Revenue Motor Vehicle Division (ADOR) to purchase the Certificate of Title Bond, also known as a Lost Title Bond.
Jet Insurance Company has cut out middlemen brokers and agents, allowing you to purchase the bond directly from us without unnecessary delay.
The cost is dependent on the Certificate of Title Bond amount required by the Motor Vehicle Division. With Jet, the cost of a three-year bond starts at $100. Below is a chart for bond rates at Jet. Anything $10,000 or under is automatically approved and available to purchase in minutes.
|Bond Limit||Cost (3-Year Bond Term)|
For bond amounts $25,000 and over, the cost of the bond will vary depending on the personal credit of the applicant, what proof of ownership does exist, and maybe additional financial statements. If approved the cost of the bond is always a small fraction of the bond amount.
The bond amount will be based on the vehicle type and the age of the vehicle as detailed in the chart below.
|Vehicle Type||Model Age||Bond Amount|
|Trailers:||Less than 5 Years||$25,000|
|5 to 10 Years||$10,000|
|More than 10 Years||$5,000|
|Passenger Cars:||Less than 5 Years||$50,000|
|Pick-Up Trucks:||5 to 10 Years||$25,000|
|More than 10 Years||$10,000|
|Trucks:||Less than 5 Years||$100,000|
|Buses:||5 to 10 Years||$50,000|
|Recreational Vehicles:||More than 10 Years||$25,000|
|Motorcycles:||Less than 5 Years||$25,000|
|5 to 10 Years||$10,000|
|More than 10 Years||$5,000|
|Manufactured Homes:||Less than 10 Years||$50,000|
|More than 10 Years||$25,000|
It is important to note that salvaged vehicles are going to have a bond amount that is 50% of the standard bond amounts listed above.
The Alabama Motor Vehicle Division wants to guarantee you have ownership of your vehicle, and a certificate of title (pink slip) is the best way to verify ownership. However, if you don’t have that certificate for some reason. The ADOR still needs proof that there are no undisclosed interests in the vehicle before issuing you title so you can truly prove ownership. But the ADOR cannot reasonably investigate who might have a claim to the vehicle ownership, so the ADOR has to take your word, but they want more...
Enter the Lost Title Bond! Jet provides a fiscal guarantee to the ADOR, should a person or entity materialize with a legitimate ownership claim to the vehicle and have lost money or vehicle value in the time the vehicle was not in their possession, then Jet will make payment to recoup their losses.
The Lost Bond is a tool used by the State of Alabama to protect its people from fraudulent claims of ownership. The ADOR could not just hand out titles to vehicles each time someone makes a claim on a car. Not even with some evidence (like a bill of sale) could they hand out titles, as liens on vehicles are quite common. How many people can pay cash up front for cars?
With the bond in place providing financial security, the ADOR requires it stay in place for three years. After which, if no one makes a claim on the vehicle, then it is determined that no other person had ownership. Or if they did have ownership, they did not care so much as to make any fuss about it.
|You lost the title|
|You never received the title from the prior owner of the vehicle|
|The previous owner never had a title|
|You revived the title, but it was not completed correctly and/or missing a signature|
|You purchased an abandoned or unclaimed vehicle|
But let’s talk about why you want the certificate of title. You have possession and no one is questioning your ownership right now (if so, a small claims court may be involved and a surety bond is the last thing on your mind). You want to sell the car and the purchasing party is requesting title transfer. You don’t have the title. So you go through the process detailed below to sell, transfer, or donate the vehicle with the Certificate of Title with the required surety bond.
First Step: MVTRIP Title Request
The best option is to not have to get the bond if you cannot find your title. Apply with the Alabama Department of Revenue for a replacement title. If the ADOR deems you to have qualified ownership to the vehicle, then you will get the Certificate of Title sent to you.
A designated agent of the Motor Vehicle Division can also assist you obtaining the title. All motor vehicle dealers are designated agents, along with county license plate issuing officials, and some financial institutions (banks/ credit unions).
Second Step: MVTRIP Surety Bond Request
You need to submit an application in the Motor Vehicle Title Registration & Insurance Portal to be allowed to use a surety bond to gain title. The Motor Vehicle Division will require the following documentation in order for a surety bond to be allowed in the granting of a certificate of title.
|Possible Scenarios||Documentation Options|
|You have the original outstanding title with you labeled as the buyer||(A) Copy of the bill of sale containing VIN|
|(B) Current registration in your name|
|You do not have the original outstanding title with you labeled as the buyer||(A) Copy of the bill of sale containing VIN|
|(B) Current registration in your name|
|(C) Copy of the insurance settlement|
Third Step: Purchase Bond with Jet
For a $5,000 or $10,000 bond amount, the application and purchase take just a couple of minutes online. The price for the bond is $100 and $150, respectively, for the three-year requirement.
For all bond limits $25,000 or over, a Jet underwriter will need to review the initial application. A soft credit check will be required during the initial application and takes only seconds. We may request further information regarding the ownership of the vehicle such as a bill of sale from you and proof that no liens exist which you can request form the State of Alabama. If a lien exists, you will need to get a release from the bank or lending institution that has the lien. Also, personal financial statements may be needed for bonds over $50,000. This information can only improve the chance of becoming eligible for the bond and lowers our offered rates.
Once purchase is complete, you will receive a copy of the bond and a receipt.
We wish we could assist you in this endeavor, however, the bond needs to be submitted to a designated agent of the Motor Vehicles Division which includes the following:
We suggest only checking with banks or credit unions that you have utilized in the purchase of the vehicle.
The bond form must be submitted to the designated agent within 90 days from the start date of the bond.
No. Once the bond has been issued and delivered to you it must remain active for three years. After three years, Jet is released of any liability and you will have clean ownership of the vehicle.
Three years. If another person or entity (dealership, bank, creditor) makes a claim on the vehicle during that time frame, then you have a problem. After that, the vehicle is yours! Unless of course you sold it, then it’s theirs!
Alabama Department of Revenue Administrative Code Chapter 810-5-75 Title Procedure details all the laws surrounding vehicle title in Alabama. Should the Motor Vehicle Division require a surety bond to obtain a Certificate of Title, then they are questioning your claim to the car and suspect another owner may exist.
If you know you have complete ownership of the vehicle, reach out to the prior owner or lender and receive written confirmation you are the rightful owner. If you doubt the prior owner had a clean title, you may have to go upstream to see if any other entity has a claim.
Should a claim of ownership be made against your vehicle during the three-year bond period, whether you have possession of the vehicle or not, the Motor Vehicle Division will come looking for you. They perform an investigation into who has rightful ownership. Should your claim come up short, then you will be responsible for any losses sustained by the rightful owner.
Failure on your part to make restitution will then result in a claim on the Lost Title Bond.
Deliver any and all proof you have of vehicle ownership including, but not limited to, the bill of sale, proof of payment that was made for the vehicle, receipts, registration paperwork, and insurance declarations. Jet will provide a defense to prove your ownership.
However, if the third-party claim is valid, Jet will make payment to the third-party for any damages they sustained up to the limit of the bond. The surety bond is not like an insurance policy and is more like an extension of credit. Meaning, the surety company guarantees payment and will expect to be repaid by you. You are ultimately responsible for your actions and will have to make payment for the bond claim in some form or other.
Licensed motor vehicle dealers will need a $50,000 Motor Vehicle Dealer Bond and may need to obtain a lost title bond from time to time.