A surety bond is provided to individuals seeking to secure a clear auto title from the Department of Motor Vehicles. The Department of Transportation mandates that vehicle owners obtain a surety bond if they lack adequate proof of ownership. These bonds are sometimes known as title bonds.

When you possess a vehicle and wish to acquire its title but face obstacles, a surety bond can assist you in this process. There are three parties involved in Automotive Title Bonds that enable you to secure the title of your vehicle, even if the finance company goes out of business after you have settled your payments.

The three parties in Automotive Title Bonds are: The Oblige (the individual or entity that receives the obligation or payment), The Principal (the individual or entity responsible for fulfilling the obligation or payment), and The Surety (the insurance entity that guarantees to the oblige that the principal will fulfill the obligated task).