What is an Alabama Certificate of Title Surety Bond?
An Alabama title bond (a surety bond) is a type of insurance you’re required to purchase as proof you’re the new - legal - owner of a vehicle.
A bonded title is required when the original vehicle title is filled out incorrectly, damaged and illegible or the original title is missing.
Get Your Alabama Title Bond
$5,000 or Less
Bonds up to $5,000
3-Year Bond
$5,001 to $50,000
Bonds over $5,000 up to $50,000
3-Year Bond Starts at $145.00
1.5% of the Bond Amount
over $50,000
Bonds over $50,000
3-Year Bond
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Who Is Required to Purchase an Alabama Title Bond?
You’re required to purchase a bonded title if:
- The original title does not have the seller’s name and your name on the back
- The original title is damaged or illegible
- The original title is missing
If the vehicle was purchased for parts, the frame, or without an engine, you cannot get the vehicle titled with a bonded title.
If the vehicle is a salvaged vehicle (rebuilt or assembled) there are special instructions. See the cost section below.
Why is an Alabama Title Bond Required?
The title bond is a surety bond that backs the bonded title issued by the Alabama Department of Motor Vehicles.
A bonded title is required as protection for:
- A previous owner who still legally owns the vehicle
- Any third party who has a lien against the vehicle
This is why it’s vital to conduct your due diligence when purchasing a used vehicle.
If liens are found on the vehicle, most sureties will not underwrite the title bond until the lien is satisfied or removed.
The 3 Steps To Get an Alabama Title Bond
Step 1: Request an Application for Title Surety Bond
Alabama provides an online surety bond portal where you can request the Application for Title Surety Bond. This form is called MVT 10-1.
This form is the actual surety bond form you will send to Surety Bonds Direct. After you purchase your title bond, we will fill this form out for you with the correct seals and signatures and mail it back to you.
When you receive form MVT 10-1 from the Department of Motor Vehicles, it will have the bond amount on it.
Alabama determines the bond amount using:
- The type of vehicle
- The age of the vehicle
Here is the current method for determining the title bond amount:
| Trailers | |
|---|---|
| 1. Less than five (5) model years old | $25,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $10,000 |
| 3. Ten (10) or more model years old | $5,000 |
| Passenger Vehicles and Pickup Trucks | |
| 1. Less than five (5) model years old | $50,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $25,000 |
| 3. Ten (10) or more model years old | $10,000 |
| Trucks, Busses, and Recreational Vehicles | |
| 1. Less than five (5) model years old | $100,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $50,000 |
| 3. Ten (10) or more model years old | $25,000 |
| Motorcycles | |
| 1. Less than five (5) model years old | $25,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $10,000 |
| 3. Ten (10) or more model years old | $5,000 |
Step 2: Purchase The Title Bond
At Surety Bonds Direct, we work with the highest A-rated sureties to find you the lowest possible price on your Alabama title bond.
Click here go back to the top of the page and purchase your title bond based on the value from step 1.
Step 3: Get Your Vehicle Registered
Once you receive your title bond (this will be form MVT 10-1) you can register your vehicle with the Alabama Department of Motor Vehicles.
Show proof of liability insurance and Alabama will issue you a bonded title that must remain active for 3 years.
Remember, a bonded title is a vehicle title backed by the surety bond you purchased. This title will have “bonded” printed on it.
How Much Does an Alabama Title Bond Cost?
The cost of a title bond is based on the fair market value of your vehicle, determined by the Alabama Department of Motor Vehicles.
The Department will provide you the value based on the type and age of the vehicle. The current bond value table is:
| Trailers | |
|---|---|
| 1. Less than five (5) model years old | $25,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $10,000 |
| 3. Ten (10) or more model years old | $5,000 |
| Passenger Vehicles and Pickup Trucks | |
| 1. Less than five (5) model years old | $50,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $25,000 |
| 3. Ten (10) or more model years old | $10,000 |
| Trucks, Busses, and Recreational Vehicles | |
| 1. Less than five (5) model years old | $100,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $50,000 |
| 3. Ten (10) or more model years old | $25,000 |
| Motorcycles | |
| 1. Less than five (5) model years old | $25,000 |
| 2. Five (5) model years old but less than ten (10) model years old | $10,000 |
| 3. Ten (10) or more model years old | $5,000 |
If your vehicle is deemed “salvage” the bond amount will be:
- 25% of the bond amount for vehicles less than 10 years old
- 20% of the bond amount for vehicles ten or more years old
If you're trying to get a manufactured home bonded title the amount will be:
- Less than (10) model years old - $50,000
- Ten (10) or more model years old - $5,000
Once you have the correct bond amount, use our pricing cards above to get your bond price.
Keep in mind, if the value of the bond is more than $30,000, you will require a custom price. This custom price is determined by a surety, the insurance company that underwrites surety bonds.
The surety will take into account your personal credit for these large bond amounts.
This is why it’s so important to work with Surety Bonds Direct.
If you have poor credit, we are able to shop around and find a surety that is willing to underwrite the lowest cost bond possible.
Plus, we have a lot of experience working with individuals who have less than perfect credit.
If you have prefer to watch video, click here and watch our video about getting your Alabama title bond.
Can't find what you're looking for? Let us help!
Get Started » or, if you'd prefer, call us at
(No obligation, takes 2 minutes)