What is a Maryland Motor Vehicle Title Service Agent Bond?
The Maryland Motor Vehicle Administration (MVA) requires all vehicle title service agents, also called auto tag distributors, to be licensed to provide services. As a part of the licensing process, agents have to post a surety bond, which ensures the agent will act within the regulations established by the state. The Maryland Motor Vehicle Title Service Agent Bond is a three-party contract between the title service agent (the principal), the Maryland MVA (the obligee), and the surety company.
But how does the bond work? Well, if the bonded agent fails to perform their duties as their license requires, their customer (the claimant) can file a claim against the bond. The surety company will investigate that claim and determine if it is valid. If it is, the surety will pay the claimant compensation up to the bond amount. Unlike typical insurance, the principal will be held responsible for reimbursing the surety company for any valid claims paid out, plus additional expenses incurred by the surety.
Who is required to have a Title Service Agent Bond?
The state of Maryland defines a title service agent as any person or entity involved in transporting certificates of titles, registrations, driver’s licenses, certified copies of records, and other related documents to and from the MVA. Anyone applying for their license must acquire a $50,000 surety bond.
Obligee information
The obligee, the entity that requires the bond, is the Maryland Motor Vehicle Administration. Their contact information is below:
Maryland Motor Vehicle Administration
Business Licensing and Compliance
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062
Email: mvablcsd@mva.maryland.gov
Phone: 1-410-768-7000
How much does it cost for a Maryland Motor Vehicle Title Service Agent Bond?
The cost of a surety bond typically depends on several factors such as the type of bond, the bond amount, the applicant’s credit and experience within the industry, and business and personal financials. The surety will consider these factors and determine your premium, what you pay, as a percentage of the bond amount. For individuals with excellent credit, premium rates may start around 1-3% of the bond amount.
Apply for your MD Title Service Agent Bond today
Applying for your Maryland Motor Vehicle Title Service Agent Bond is simple, fast, and free with EZ Surety Bonds. Just fill out our short application form, and someone will contact you with your quote within 24 hours. If you have any more questions, please contact our surety experts at info@ezsuretybonds.com or 1-866-546-4605.
Frequently Asked Questions
How to become a Motor Vehicle Title Service Agent License in Maryland?
Those seeking to become a licensed title service agent must:
- Submit an application for the title service agent license, which must include the names and information of all employees that will work within the operation.
- Submit a zoning approval form.
- Submit a business registration letter to the State Department of Assessment and Taxation, which authorizes the company to do business in Maryland under the name submitted on their application.
- Pass the Maryland Code of Regulations site inspection.
- Complete the business licensing orientation.
- Pay the license fee of $112.50 for a 2-year license.
- Obtain a contract with an Electronic Registration and Titling (ERT) Provider.
- Submit a criminal background check.
- Post a $50,000 surety bond.
- Provide the necessary information regarding Workers’ Compensation Insurance to the appropriate regulatory agency.
How does a MD auto tag distributor bond work?
A Maryland auto tag distributor, more commonly referred to as a vehicle title service agent, is an individual or business that transports documents such as certificates of titles, registrations, driver’s licenses, and certified copies of records to and from the MVA. If the licensed auto tag distributor fails to adhere to their licensing laws, an injured party may file a claim against their bond. If the surety company finds the claim valid, the person who filed the claim (the claimant) will receive compensation from the surety up to the bond amount. The licensed distributor is ultimately responsible for reimbursing the surety for all claims paid out, plus additional expenses incurred.
I purchased my Maryland Motor Vehicle Title Service Agent Bond—now what?
After buying your bond through EZSuretyBonds.com, the original bond gets mailed to you. Most obligees require you to sign and file the original bond with them directly. However, we encourage everyone to verify the filing requirements of your obligee, as they tend to vary.
