Texas Motor Vehicle Surety Bonds
Vehicle owners and motor vehicle dealers can encounter very different surety bond requirements depending on whether the issue involves vehicle ownership, dealer licensing or dealership registration activity.
Lavon Insurance helps Texans identify and obtain title bonds, motor vehicle dealer bonds and dealer registration bonds through available surety markets.
Which Motor Vehicle Bond Do You Need?
These bonds serve different purposes. Select the situation that most closely matches what you are trying to accomplish.
Texas Title Bond
A bonded title may be an option when you own a vehicle but cannot provide the normal ownership documentation needed to obtain a Texas title.
The required bond amount is generally based on the vehicle’s value as determined through the bonded-title process.
Learn About Texas Title Bonds →Motor Vehicle Dealer Bond
Certain Texas dealer classifications require a $50,000 Motor Vehicle Dealer Surety Bond as part of the General Distinguishing Number, or GDN, licensing process.
This is generally the dealer bond associated with applicable Texas dealer-license requirements.
Learn About the $50,000 Dealer Bond →Dealer Registration Bond
An Automobile Dealer Motor Vehicle Registration Bond may be required when a dealership is authorized by a county tax assessor-collector to perform certain dealer-deputy title and registration functions.
This is separate from the standard $50,000 GDN dealer bond.
Learn About Dealer Registration Bonds →Three Bonds With Very Different Purposes
Title Bond
For: Vehicle owners
Used in qualifying situations when the applicant needs to establish a bonded vehicle title because normal ownership documentation is unavailable or insufficient.
Motor Vehicle Dealer Bond
For: Applicable Texas dealers
A $50,000 surety bond associated with certain Texas dealer GDN licensing requirements.
Dealer Registration Bond
For: Certain dealer deputies
Associated with dealership authority to perform designated title and registration functions through a county tax assessor-collector.
Need a Texas Bonded Title?
Vehicle ownership problems can happen when paperwork is lost, incomplete or otherwise insufficient to obtain a normal Texas title.
In certain qualifying situations, Texas provides a bonded title process that requires the applicant to obtain a surety bond before a bonded certificate of title can be issued.
The amount of the title bond depends on the vehicle’s value and the requirements established during the bonded-title process.
Opening or Renewing a Texas Dealership?
Certain Texas motor vehicle dealer classifications must provide a $50,000 Motor Vehicle Dealer Surety Bond as part of the applicable GDN licensing requirements.
The $50,000 amount represents the bond’s penal amount. The dealer generally pays a surety premium rather than depositing the entire $50,000.
Bond approval and premium depend on the surety’s underwriting requirements.
Has Your County Requested a Dealer Registration Bond?
A Motor Vehicle Registration Bond serves a different purpose from the dealer’s GDN surety bond.
This type of bond may arise when a dealership is authorized by a county tax assessor-collector to perform certain title and registration functions as a dealer deputy.
Because county requirements can vary, dealers should obtain the required bond amount, bond form and instructions from the applicable county before purchasing the bond.
Motor Vehicle Surety Bond Assistance
Whether you’re dealing with a vehicle title problem or establishing a Texas motor vehicle dealership, Lavon Insurance can help you identify the surety product that matches the requirement.
Vehicle Owners
Get help understanding the Texas title bond process when regular title documentation is unavailable.
Auto Dealers
Apply for dealer-license and dealer-registration surety bonds available through our markets.
Personal Assistance
If you’re not certain which bond an agency or county is requesting, send us the requirement before purchasing.
Texas Motor Vehicle Bond FAQs
What is a Texas motor vehicle surety bond?
Is a title bond the same as a dealer bond?
How much is the Texas Motor Vehicle Dealer Bond?
Is the Dealer Registration Bond also $50,000?
Does every Texas automobile dealer need both dealer bonds?
What if I don’t know which bond I need?
Find the Texas Motor Vehicle Surety Bond You Need
From bonded vehicle titles to dealer licensing and dealer-registration requirements, Lavon Insurance can help you identify the appropriate motor vehicle surety bond and begin the application process.
Bond requirements, amounts, eligibility, premium and underwriting requirements vary by bond type, government agency, county, applicant and surety company.