Texas bonded title: the bond is 1.5 times the vehicle value
A Texas bonded title needs a surety bond of one and a half times the vehicle value; a $15,000 car means a $22,500 bond, priced around $355.
Title bond in Texas
$355
estimated premium, paid once, for a $22,500 bond
| Bond amount | $22,500 (1.5 × the value) |
| Vehicle value used | Standard Presumptive Value, then NADA guide, then appraisal |
| Rule | Tex. Transp. Code § 501.053; 43 TAC § 217.9 |
Premium on one published schedule: $100 up to a $6,000 bond, then $15 per extra $1,000. Rule read on the DMV page, October 22, 2026.
Compiled by Radif Partners · Method and sources · rule read October 22, 2026
Texas lets the owner of a vehicle without proper title documents obtain a bonded title from the Department of Motor Vehicles, under section 501.053 of the Transportation Code and the department's rules. The DMV states the amount simply: "The amount is equal to 1 ½ times the value of the vehicle." The value is not the owner's guess. TxDMV looks first at the Standard Presumptive Value it uses for sales tax, then at a NADA guide, and accepts an appraisal by a licensed dealer or an insurance adjuster when neither applies. Once the DMV sends its notice, the owner has one year to buy the bond and file it. A vehicle with an open lien less than ten years old needs a release of lien first. The premium is paid once and is small compared with the bond: on one published schedule, about $145 for a $6,000 vehicle, $355 for $15,000 and $685 for $30,000. Rule read on October 22, 2026.
Why 1.5 times, not 1.5 percent
The TxDMV page on vehicles bought without a title (TxDMV) gives the rule in one sentence: the bond "is equal to 1 ½ times the value of the vehicle". Several bond sellers describe the Texas bond as 1.5 percent of value, which confuses the bond amount with the price of the bond. For a $10,000 car, the bond the DMV requires is $15,000. What you pay the surety is a premium on that amount, around $235 on a published schedule.
The multiple protects anyone with a better claim to the vehicle, a former owner or a lender, who might appear after the bonded title is issued. The extra half covers costs beyond the bare value.
Texas title bond for your vehicle value
Title bond in Texas
$220
| Bond amount | $13,500 (1.5 × the value) |
| Vehicle value used | Standard Presumptive Value, then NADA guide, then appraisal |
| Rule | Tex. Transp. Code § 501.053; 43 TAC § 217.9 |
The steps in Texas
An applicant gathers every ownership document available, such as the bill of sale and any prior registration, and applies to the DMV for a determination. The vehicle must be inspected, and its value is set in the order the department uses: Standard Presumptive Value, then a NADA guide, then a dealer or adjuster appraisal. The DMV sends a notice with the bond amount; the applicant then has one year to buy the bond from a surety authorized in Texas and file it with the title application at the county tax office.
Some vehicles cannot get a bonded title this way: one with an open lien less than ten years old, unless the lienholder releases it, and one reported stolen. A vehicle with a valid out-of-state title or a recent salvage history follows other procedures.
After three years
The bonded title carries a notation for the term of the bond. Once the period passes without a claim, the owner can obtain a regular title. Selling the vehicle before then is possible; the bond stays attached to the title until it expires. The title bond overview compares Texas with California, which uses the market value itself, and Vermont, which uses the same multiple.
The Texas rule as read
| Item | Value |
|---|---|
| Bond amount | 1.5 × the vehicle value |
| Value used | Standard Presumptive Value, then NADA guide, then appraisal |
| Rule | Tex. Transp. Code § 501.053; 43 TAC § 217.9 |
| Line read | “The amount is equal to 1 ½ times the value of the vehicle.” |
| Page | www.txdmv.gov |
| Read on | October 22, 2026 |