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California Defective Title Bond

How much does a defective title bond cost in California?

If a vehicle is valued at $5,000 or more and supporting evidence of ownership is not available, the vehicle owner must post a California motor vehicle ownership surety bond. The required bond amount must be equal to the fair market value of the vehicle, which is determined by:

  • a written appraisal provided by a dealer or motor vehicle insurance representative licensed in California or another state, or
  • a Statement of Facts form giving the valuation of the vehicle based on information provided in a recognized industry motor vehicle valuation and pricing handbook, such as the Kelly Blue Book

The lowest and highest price valuations must be shown, added together, then divided by 2 to get the average price of the vehicle. This is the required bond amount.

If your required bond amount is less than $25,000, your bond can be issued instantly without a credit check. In fact, bonds in amounts less than $6,000 cost just $100! Bonds in amounts greater than $25,000 are subject to underwriting.

Please note this bond is only allows a vehicle title to be issued. If you plan on selling cars and other vehicles, a California auto dealer license bond is required.

The best way to find out exactly how much you’ll pay for your California title bond is to submit an online bond request. One of our surety experts will contact you right away to walk you through our fast and easy bonding process!

Bond Type Bond Amount Cost*
Less than $6,000 Certificate of Title Bond Less than $6,000 $100 for 3 years Apply Now
$6,000-$25,000 Certificate of Title Bond $6,000-$25,000 $15 per $1,000 for 3 years Apply Now
More than $25,000 Certificate of Title Bond More than $25,000 Subject to Underwriting Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Call 1 (800) 308-4358, or click here, to begin the bonding process. Our experts make purchasing the California surety bond you need fast and easy.

Why do I need this bond?

A California defective title bond is required for the current owner of a vehicle to obtain a new certificate of title for the vehicle. By posting this bond, the principal (vehicle owner) indemnifies the state from any financial losses that might occur as a result of the issuance of a new certificate of motor vehicle ownership.

If the state suffers any damages, the surety will cover any sums due up to the full amount of the bond (the value of the vehicle). The principal must reimburse the surety for any damages paid out.

Have questions about motor vehicle ownership bonds in California? Ready to purchase your surety bond quickly and easily? Submit an online bond request now!

What’s the fine print?

Motor vehicle ownership bonds in California can be canceled by the surety in accordance with Article 13, Chapter 2, Title 14, Part 2 of the Civil Code of Procedure. A written notice of cancellation or withdrawal must be received by the DMV at least 30 days prior the effective date.

The following information must be indicated on the bond form:

  • the vehicle’s California license plate number
  • the VIN number
  • the vehicle’s year, model and make

Ready to get started?

Get a FREE Defective Title Bond Quote Today!

Additional Resources

Motor Vehicle Ownership Surety Bond form

California Vehicle Code 44157 and 98050

California Vehicle Code 4307

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