What Is a Louisiana Auto Title Company Bond?
Businesses who want to operate as auto title companies in Louisiana have to get a state license. Posting an auto title company bond is among the major licensing requirement that you need to fulfill.
The purpose of this type of auto dealer bond is to protect the state and its citizens from potential unlawful activities on your part. It can provide a compensation for harmed parties via a bond claim.
The bond is a three-party contractual agreement. Your auto title company that has to get the bonding is the principal. The Louisiana Office of Motor Vehicles at the Department of Public Safety and Corrections is the obligee. The third entity that provides the bond and backs your business is the surety.
Frequently Asked Questions
Who is required to obtain such a bond?
If you want to get a license as an auto title company in Louisiana, you need to obtain a state auto title company license. It allows you to engage in the transfer and recordation of vehicle sales, leases, and mortgages.
The authority in charge is the Department of Public Safety and Corrections’ Office of Motor Vehicles. As a part of the licensing, you need to present a $100,000 bond together with your completed application. The bond ensures you will follow the rules set in Title 32 of the Louisiana Laws.
How much does the auto title company bond cost?
The bond amount that you have to provide as a part of your licensing is $100,000. However, the bond premium that you need to pay is typically only 1% to 3% of this amount.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Louisiana auto title company bond||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
Your surety bond cost is determined on the basis of your personal and business finances. Most importantly, your surety takes a close look at your personal credit score and business financials, as well as any assets and liquidity and professional experience. The bond price you will have to pay will be lower if your profile is stable and trustworthy.
What if I have problematic finances?
Lance Surety Bonds operates its Bad Credit Surety Bonds program to provide bonding options for applicants with financial issues. If you struggle with low credit scores, tax liens, bankruptcies, or civil judgements, this might be your way to get bonded.
The bad credit bond rates are a bit higher, in the range of 5% to 10%. They compensate for the increased bonding risk. We collaborate with numerous A-rated, T-listed surety companies, so we can provide you with a top quote whatever your finances are.
How do I get bonded?
Looking to learn more about the bonding process? You can find extensive information in our How to Get Bonded page.
For any questions or if you need help with your application, you can reach us at (877) 514-5146. Lance Surety Bonds’ experts will be happy to assist you.
What happens if I get a bond claim?
Your surety bond is protection for the state and the general public. It ensures your legal compliance. Most notably, it can provide reimbursement for state authorities if you fail to pass on all collected sales taxes on transactions that you’ve handled. The maximum sum that can be claimed is $100,000 or $125,000, depending on the bond amount you’ve posted.
On proven claims, your surety may step in to cover the costs at first. You are liable to reimburse it afterwards. Thus, it’s best to stay away from problematic situations that can lead to bond claims.