Michigan Vehicle Title Bond for Individuals ($50,000 and Under)

If you are an individual in Michigan trying to title a vehicle but lack proper ownership documentation—such as a lost, defective, or missing title—you may be required to obtain a Michigan Vehicle Title Bond. This bond ensures that prior owners, lienholders, and future buyers are protected against potential title disputes or ownership claims.

From my experience, many individuals only realize they need a Vehicle Title Bond when they try to register or sell a vehicle and are told by the Michigan Secretary of State that they lack sufficient proof of ownership. If you find yourself in this situation, this guide will help you understand what a Michigan Vehicle Title Bond is, why it’s required, how much it costs, and how to obtain one quickly and efficiently.

What Is a Michigan Vehicle Title Bond?

A Michigan Vehicle Title Bond, also known as a Vehicle Uniform Surety Bond, is a surety bond required by the Michigan Department of State (MDOS) when an individual applies for a vehicle title without proper proof of ownership.

This bond serves as a financial safeguard by:

✔ Verifying your ownership claim before issuing a title
✔ Protecting prior owners and lienholders from financial loss if the title is issued incorrectly
✔ Holding the title applicant financially responsible in case of ownership disputes

If a valid claim is filed against the bond (for example, if a previous owner or lienholder proves the vehicle was wrongfully titled), the surety company may pay damages up to the bond amount, and the individual who obtained the bond must reimburse the surety for any claims paid.

Who Needs a Michigan Vehicle Title Bond?

You may need a Michigan Vehicle Title Bond if you:

✅ Purchased a vehicle without receiving a properly assigned title
✅ Lost your vehicle title and cannot obtain a duplicate from the previous owner
✅ Bought a vehicle at auction, estate sale, or private sale and the seller did not provide a valid title
✅ Inherited a vehicle but do not have legal documentation of ownership
✅ Purchased a repossessed or abandoned vehicle and need to obtain a title

If your vehicle is valued over $2,500 and lacks proper ownership documentation, Michigan law requires you to obtain a Vehicle Title Bond before a new title can be issued.

When Is a Vehicle Title Bond Required in Michigan?

The Michigan Department of State (MDOS) requires a Vehicle Title Bond only when:

📌 The vehicle’s value is over $2,500
📌 The vehicle is less than 10 years old
📌 There is no verifiable proof of ownership (such as a missing, altered, or improperly assigned title)

You may not need a bond if:
✔ The vehicle is more than 10 years old and valued under $2,500
✔ The previous owner can apply for a duplicate title and transfer it to you

To confirm whether a bond is required, you should contact MDOS or check the Michigan Uniform Surety Bond Requirements (Form TR-121).

How Much Does a Michigan Vehicle Title Bond Cost?

The bond amount required is equal to twice the appraised value of the vehicle.

Bond Amount Calculation Example

📌 If the vehicle is valued at $10,000, the required bond amount will be $20,000
📌 If the vehicle is valued at $25,000, the required bond amount will be $50,000

Bond Premium (What You Pay)

You do not need to pay the full bond amount. Instead, you only pay a bond premium, which is a small percentage of the total bond amount.

💰 Typical Premium Rates:
📌 With good credit (700+ score): 1% - 2% of the bond amount
📌 With fair credit (650-699 score): 2% - 4% of the bond amount
📌 With poor credit (below 650): 4% - 10% of the bond amount

Example Bond Premium Costs

• For a $20,000 bond:
  
  

  • Good credit: $200 - $400 per year

  • Fair credit: $400 - $800 per year

  • Poor credit: $800 - $2,000 per year

• For a $50,000 bond:
  
  

  • Good credit: $500 - $1,000 per year

  • Fair credit: $1,000 - $2,000 per year

  • Poor credit: $2,000 - $5,000 per year

💡 Tip: Applicants with strong credit and no prior bond claims typically qualify for lower bond rates. If you have credit challenges, working with a specialized surety provider can help secure a more affordable premium.

How to Obtain a Michigan Vehicle Title Bond for Individuals

Getting a Vehicle Title Bond in Michigan is quick and straightforward:

1️⃣ Determine the Vehicle’s Value – You will need an official appraisal or market valuation from a licensed dealer or MDOS-approved source.
2️⃣ Check Bond Requirements – Verify with MDOS that a bond is required for your vehicle.
3️⃣ Apply for the Bond – Submit a bond application with details about yourself and the vehicle.
4️⃣ Receive a Quote – Your bond premium will depend on credit score, financial stability, and bond amount required.
5️⃣ Pay for the Bond – Once approved, pay the bond premium to activate coverage.
6️⃣ File the Bond with MDOS – Submit the Vehicle Uniform Surety Bond (Form TR-121) along with your title application.

Most bonds are issued within 24 hours, allowing you to avoid delays in getting your vehicle titled.

What Happens If a Claim Is Filed Against Your Bond?

If a previous owner, lienholder, or another party proves they have a valid ownership claim to the vehicle, they can file a claim against your bond.

Common Reasons for Bond Claims:

🚨 A prior owner proves the vehicle was wrongfully titled
🚨 A lienholder states an outstanding loan or debt is still unpaid
🚨 Fraudulent documentation is discovered after the title was issued

If a claim is validated, the surety company may pay out damages up to the bond amount. However, as the bondholder, you must reimburse the surety company for any amounts paid.

To avoid bond claims, individuals should:
✔ Ensure all documentation is accurate and truthful
✔ Verify that there are no outstanding liens or disputes
✔ Obtain a vehicle history report before applying for the bond

Why Choose Axcess Surety for Your Michigan Vehicle Title Bond?

At Axcess Surety, we specialize in helping individuals get vehicle title bonds quickly and affordably.

✔ Fast Approvals – Most bonds issued in 24 hours
✔ Competitive Pricing – Affordable options, even for applicants with credit challenges
✔ Expert Support – We understand Michigan’s title bonding requirements
✔ Easy Online Application – Apply in minutes from anywhere

Get Your Michigan Vehicle Title Bond Today!

Need a Michigan Vehicle Title Bond to title your vehicle? We make the process fast, easy, and affordable.

🔗 Apply Now or call us today to get started!