Vermont Vehicle Title Bonds

A bonded title in Vermont is a regular Certificate of Title the DMV issues on the strength of a Title Bond (DMV form VT-020), also called a Certificate of Title Surety Bond. Vermont uses it only when you cannot get the normal proof of ownership and have exhausted every other way to obtain the title. Vermont law calls this filing a bond under 23 V.S.A. § 2020.

The bond protects the State of Vermont and any prior owner, lienholder, or future buyer if someone else turns out to have a claim on the vehicle. You file it together with your Registration/Tax/Title Application (VD-119) — it does not replace the application.

Vermont sets the bond at 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value, and the bond stays in effect for three years. If no one makes a valid claim during that time, the bond ends and you keep a clear title.

You must be a Vermont resident, and a bond is not always needed. If you can show ownership another way that satisfies the Commissioner, the DMV can issue the title without a bond. Once you have a bonded title, you can use it to register, insure, or sell the vehicle, and the bond can pass to the next owner if you sell it.

You do not pay the full bond amount. In Vermont, the Title Bond must equal 1.5 times your vehicle's value, as determined by the Commissioner using the J.D. Power average trade-in value. You pay a premium, which is a smaller percentage of that bond amount.

Your premium depends on the bond amount and underwriting. Use the calculator above for an estimate; your final premium may vary. Vermont's title fee, any lien fee, the 6% Purchase and Use Tax, and registration fees are separate from the bond premium.