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California Motor Vehicle Registration and Title Service Bonds


What is a California Vehicle Registration Service Bond?

A Registration Service Bond is a type of surety bond required for businesses licensed by the Department of Motor Vehicles (DMV) to engage in processing registration, ownership transfers, registration renewals, and other related DMV documents. The surety bond is mandated pursuant to California Vehicle Code (CVC) Section 505.2 and 11400 et seq., and California Code of Regulations (CCR), Title 13, Section 330.00 et seq.

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Why is a California Registration Service Bond Required?

The Registration Service Bond protects the public and the State of California from losses arising out of the bonded principal's actions in the operation of the registration service business. This surety bond is executed by the surety company and subject to all terms and compliance requirements under Chapter 2.5 (commencing with section 11400), Division 5, California Vehicle Code and chapter 2, title 14, part 2, Code of Civil Procedure.

Registration Service Bonds And Getting Your California Business License/Registration

All applicants seeking a registration service license must taking the following steps:

  • File application with the Department of Motor Vehicles pursuant to CVC Section 11401 et seq. and CCR, Title 13, Section 330.00 et. seq.
  • Pay required fees pursuant to CVC Section 11409 et seq.
  • Provide a surety bond (Form OL 605) in the coverage amount of $25,000 bond executed pursuant to CVC Section 11402 et seq., CCR Section 330.08.
  • File with an instrument designating the Director as agent of the applicant for service of process pursuant to CVC Section 11403 et seq.