Say you bought a sweet 69’ Camaro out of state and the guy you bought it from lost the title years ago (Or possibly is a title-jumper, who knows!), and you thought— what the heck, I’ll see what I’ll have to do, I really want that car!
After you do a bit of research you discover that you will need to get a “bonded title” through a surety company. Reason being is the state needs to have some sort of promise that you own the vehicle, and to keep dated and proper documentation of a previously untitled vehicle on hand in case it turns up stolen!
After you get the Surety Bond based on the value of the vehicle, you submit the bonding documents to the state DMV and acquire your new bonded title, with the car now 100% in your name!
There are some practical uses to Surety Bonds and shows that they have a much different role than a regular insurance plan!