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Written by:
Shivani Gite
Contributing Writer
Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.
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Reviewed by:
Laura Longero
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Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

Surety bonds guarantee the performance or financial obligations of others. A simple definition is that a surety bond is a written agreement that usually provides for monetary compensation in case the principal fails to perform the acts promised.

Most large property and casualty insurance companies have surety departments. In addition, there are some companies for which surety bonds make up all or most of their business.

Surety bonds are issued through surety bond producers, also known as agents and brokers, who know the surety industry. Surety bond producers typically work in agencies that specialize in surety bonds or in insurance agencies that deal in insurance policies and surety bonds.

There are various types of surety bonds; some deal with business ventures like construction, while others are associated with motor vehicles. Some states allow a surety bond to be posted instead of maintaining auto insurance. You may also obtain bone insurance or a surety bond for the title of a vehicle. 

This title bond guarantees to a motor vehicle department that the title to a vehicle is clear, as represented. If there is a claim, someone else has a lien or owns the vehicle, then the DMV will file against the bond. The surety would be required to pay the claim and seek your recovery.

If you have trouble finding someone to issue you a surety bond, contact your state’s insurance regulatory body for consumer help.

— Michelle Megna contributed to this story.

 

Laura Longero

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Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

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Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.