Connecticut Lost Title Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Connecticut Lost Title Bond

At a Glance:

• Lowest Cost: $100 per year
• Bond Amount: Twice the vehicle’s value
• Who Needs it: Vehicle title applicants in Connecticut who do not have adequate proof of ownership
• Purpose: To ensure the rightful vehicle owner does not suffer financial harm if the title applicant does not actually own the vehicle
• Who Regulates Lost Title Bonds In Connecticut: The Connecticut Department of Revenue

Background

Connecticut statute 17-176 requires residents who never received or have lost their vehicle title to purchase a surety bond prior to obtaining their duplicate title. The Connecticut legislature enacted the bonding requirement to ensure that the rightful vehicle owner will receive compensation if the title applicant does not actually own the vehicle. The bond amount must be equal to twice the vehicle’s value.

What is the Purpose of the Connecticut Lost Title Bond?

Connecticut requires residents to purchase a surety bond as part of the application process to obtain a duplicate title. The bond ensures that the rightful vehicle owner will not suffer a financial loss if the title applicant is seeking to obtain the title fraudulently. If the title applicant is engaging in fraud, then the rightful vehicle owner can file a claim against the bond and receive compensation up to the full amount of the bond. In short, the bond acts as a safeguard against people attempting to obtain ownership of a vehicle through unethical means.

How Can an Insurance Agent Obtain a Connecticut Lost Title Bond?

BondExchange makes obtaining a Connecticut Lost Title Bond easy. Simply log in to your account and use our keyword search to find the “title” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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How is the Bond Amount Determined?

Connecticut statute 14-176 dictates that the bond amount must be equal to twice the vehicle’s value as determined by the Department of Motor Vehicles.

Is a Credit Check Required for the Connecticut Lost Title Bond?

Surety companies will not conduct a credit check for bonds that are less than $25,000. At limits over $25,000, surety companies will review the applicant’s credit standing to determine qualification for the bond. For larger bond amounts, applicants with poor credit may be subject to a higher rate. Generally, most carriers want to have an understanding as to how the applicant came to have ownership of the vehicle.

How Much Does the Connecticut Lost Title Bond Cost?

The Connecticut Lost Title Bond costs either $100 or 1.5% of the bond amount, whichever is greater (rates may vary for bonds greater than $25,000).

Who is Required to Purchase a Bond?

The Connecticut Department of Motor Vehicles will require a title applicant to purchase a surety bond if they cannot determine with certainty that the applicant actually owns the vehicle. Typically, lost title bonds are required for the following reasons:

• The vehicle has never been titled
• The applicant never received the title
• The previous owner never titled the vehicle
• The applicant has the title but there is an error in the title transfer
• The applicant purchased an unclaimed/abandoned vehicle and is not a bonded agent

How do Connecticut Residents Apply for a Bonded Title?

To apply for a bonded title, Connecticut residents must complete the following steps:

Step 1 – Consult the DMV

Bonded title applicants in Connecticut should consult with their local DMV prior to purchasing a surety bond. Connecticut does not require all duplicate title applicants to obtain a bonded title, and title applicants should ensure that they actually need a bond before purchasing one.

Step 2 – Purchase a Surety Bond

Once they get confirmation from the DMV, bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s value as determined by the Department of Motor Vehicles.

Step 3 – Complete the Application

All bonded title applicants in Connecticut must complete the replacement title application and drop it off at their local DMV office or mail it to the following address:

State of Connecticut
Department of Motor Vehicles
Attn: Specialized Registry Services
60 State Street
Wethersfield, CT  06161

Bonded title applicants must pay a $25 fee when submitting their application.

How Do Connecticut Bonded Title Applicants File Their Bond?

In Connecticut, bonded title applicants should submit the completed bond form, including the power of attorney, to their local DMV office or mail it to the following address:

State of Connecticut
Department of Motor Vehicles
Attn: Specialized Registry Services
60 State Street
Wethersfield, CT  06161

The Connecticut Title Surety Bond requires signatures from both the surety company that issues the bond and the bonded title applicant. The surety company should include the following information on the bond form:

• The legal name and address of entity/individual(s) buying the bond
• Surety company’s name and address
• Bond amount
• Vehicle information
• Date the bond is signed
• Witness signatures for the principal and surety company

What Are the Insurance Requirements for Bonded Title Applicants in Connecticut?

Connecticut requires all motor vehicle owners to purchase auto insurance with the following limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage

Bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s value as determined by the Department of Motor Vehicles.

How Can Connecticut Residents Avoid Claims Against Their Lost Title Bond?

To avoid claims against their bond, bonded title applicants in Connecticut must ensure that they are the rightful owners of the motor vehicle.

What Other Insurance Products Can Agents Offer Bonded Title Applicants in Connecticut?

Connecticut requires all motor vehicle owners to purchase auto insurance. Bonds are our only business at BondExchange, so we do not issue other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.