How much does a Louisiana auto title company bond cost?
The Louisiana Department of Public Safety and Corrections’ Office of Motor Vehicles requires auto title companies to post $100,000 surety bonds for a single location. In 2016, a $125,000 bond was also introduced to cover multiple locations within the state. Visit our blog to read more about the auto title company bond increase.
The cost of a Louisiana auto title bond is a small percentage of the total bond amount and is determined by an underwriter after reviewing the application prior to providing a quote. Extremely qualified applicants may be qualified for as little as 1-3% of the bond amount.
Why do I need this bond?
By posting a Louisiana auto title company bond, principals (auto title companies) pledge to engage in business as an auto title company as defined by Section 702 (12) of the Louisiana Revised Statutes of 1950. Specifically, these bonds guarantee the payment of all loss, damages and expenses that occur as a result of the principal’s unlawful business practices—namely failing to report all sales taxes collected by the auto title company at the time of a transaction.
We can provide your free, no-obligation bond quote within 1 business day of submitting your application. Get started now!
What’s the fine print?
Auto title company surety bonds in Louisiana remain in full force and effect until canceled. The surety can cancel the bond at any time by giving written notice via registered mail to the department and the principal. Cancellation becomes effective 30 days after the department receives the notice.
These bonds expire on May 31, so your bond premium could be prorated depending on when you buy it. Our team of surety experts works hard to get you bonded according to your specific needs.
How to become a licensed Louisiana auto title company
To become licensed as an auto title company in Louisiana, applicants must:
- be a person of good moral character with a reputation for honesty and no felony convictions
- have and maintain an established place of business in Louisiana that complies with local zoning and occupational laws
- submit a properly completed, notarized application (DPSMV 1968) for each location
- have email capabilities to receive notifications of updates to OMV policies/procedures
- post a surety bond in the amount of $10,000
- pay an annual fee of $200 for one business location and an annual fee of $50 for each additional business location
Complete licensing information can be accessed via the Additional Resources section of this page.
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