Alabama Bonded Title (MVT 10-1)

You need one when you cannot show a clean title and ALDOR approves your MVT 10-1A request to title the vehicle under a surety bond. The amount is set by rule, not by an appraisal. Ala. Admin. Code r. 810-5-75-.34 lists standardized bond amounts by vehicle class and model-year age. For example, a passenger vehicle or pickup under 5 model years old is $50,000, one that is 5 to under 10 is $25,000, and one that is 10 or more is $10,000. Trailers, trucks, buses, RVs, motorcycles and manufactured homes have their own amounts, shown in the table on this page. What the vehicle is worth does not change the figure.

MVT 10-1A is the electronic request you make to ALDOR for permission to use a surety bond. Once ALDOR approves it, you receive the Certificate of Title Surety Bond, form MVT 10-1, which you and the surety complete. After that, you apply for the title on form MVT 5-1E through a designated agent within 90 days of the date the bond was executed. You cannot reach MVT 10-1 without the MVT 10-1A request first.

No. Rule 810-5-75-.34(4) requires the surety to be licensed in Alabama, and the bond must be signed with a power of attorney. A bond from a company that is not licensed in Alabama is not what ALDOR's rule calls for, so check the surety's Alabama license before you pay for a bond.

The bonded title carries the legend "THIS TITLE WAS SECURED UNDER THREE-YEAR SURETY BOND," and the bond indemnifies for three years (rule 810-5-75-.34(5) and (8)). If a prior owner or lienholder makes a valid claim during that period, the surety may pay it up to the bond amount and then look to you for reimbursement.

Yes. Under rule 810-5-75-.34(9), the bond for a salvage vehicle is 25% of the standard amount if the vehicle is under 10 model years old, and 20% if it is 10 or more. A salvage passenger vehicle that is 10 or more model years old, for example, takes 20% of $10,000, which is $2,000.

If an out-of-state title issued under a bond is still in effect, rule 810-5-75-.34(6) requires an Alabama bond. Ask ALDOR how the rule applies to your title before you apply.

ALDOR's FAQ says form MVT 10-1 covers a motor vehicle, a manufactured home or a vessel. The rule gives manufactured homes two bands: $50,000 under 10 model years and $25,000 at 10 or more. It lists no amount for a vessel, so confirm a vessel bond amount with ALDOR.

Rule 810-5-75-.34 does not state how long ALDOR takes to issue a bonded title in Alabama; ask ALDOR for current timing. What the rule does set is a deadline to file your title application within 90 days of the bond being executed. Once your bond is in hand, bring the MVT 5-1E title application to a designated agent before those 90 days run out.

Sources: Alabama Admin. Code 810-5-75-.34 · Alabama Department of Revenue: Applying for a surety bond

Under rule 810-5-75-.34, an Alabama bonded title carries a three-year indemnity period and prints the legend "THIS TITLE WAS SECURED UNDER THREE-YEAR SURETY BOND" on the title. The bond stands behind the title for that three-year period. Ask ALDOR if you have questions about how a prior claim would be handled.

Source: Alabama Admin. Code 810-5-75-.34

Rule 810-5-75-.34 sets Alabama's surety-bond route: request the bond on MVT 10-1A, the carrier issues it on MVT 10-1, then file the MVT 5-1E title application through a designated agent. ALDOR's Unclaimed/Abandoned portal documents one bill-of-sale path: the abandoned-vehicle bill of sale it generates is used to apply for title in that specific process. Confirm with ALDOR whether an older vehicle needs a title at all before starting the bond route.

Sources: Alabama Admin. Code 810-5-75-.34 · Alabama Department of Revenue: Unclaimed and abandoned motor vehicle law and procedures

Alabama titles the vehicle under rule 810-5-75-.34: you request the bond on MVT 10-1A, the carrier issues it on MVT 10-1 in the standardized amount for your vehicle's class and age, then you file MVT 5-1E through a designated agent within 90 days. The bond amount is fixed by vehicle type and model-year age, not by value. The issued title prints the three-year surety bond legend and the bond stays in effect for three years.

Sources: Alabama Admin. Code 810-5-75-.34 · Alabama Department of Revenue: Applying for a surety bond

The bond amount is set by vehicle class and model-year age under rule 810-5-75-.34, not by value; you pay a premium that is a small percentage of that bond amount, not the full amount. For passenger vehicles and pickups the schedule is $50,000 under 5 model years, $25,000 at 5 to under 10, and $10,000 at 10 or more. The site calculator gives an estimate, and the surety sets the final price. Send Eric the details and he will shop multiple surety carriers; any figure before that is an estimate.

Source: Alabama Admin. Code 810-5-75-.34

Request the bond from ALDOR on the electronic form MVT 10-1A. When ALDOR approves it, have the bond executed on form MVT 10-1 by a surety licensed in Alabama, signed with a power of attorney. Then apply for the title on form MVT 5-1E through a designated agent within 90 days of the date the bond was executed. Use the quote form on this page to ask for the bond quote.

A licensed agent reviews your request and submits it to the carrier; most quotes come back within one business day. The carrier decides approval and the final premium.