Quote:
Originally Posted by 1project2many
But you are potentially liable for multiple claims. Guy you sold the truck to, guy he sold the truck to, guy that owns one or more parts of truck you titled... How many claims does ins co actually pay and at what point do they say "You've reached max dollar amount with us. Sorry?"
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think you misunderstand... it protects against claim by a previous person that claims interest in truck...for instance I have a bonded title(which are technically 2 separate legal instruments, a clear title with a separate bond attached in my name). A past owner holding original title or lien holder looking for the truck contacts DMV and the bond from my title pops up matching the vin. Again the bond is in my name. They would have to sue me for compensation, not a future owner I sold it to. If they did sue me and won it is in a dollar amount decided by the court. The bond pays them. They don't get the truck.
Of course the insurance company as well the DMV has already done their due diligence to make sure to the best of there ability there is no previous potential claimant, lien holder etc. before they are willing to insure with bond or issue title respectively.
BTW the bond is set at potential future value...in my last case $25,000 for an old truck I paid $2000 for.
Any purchasers after me have nothing to do with it, nor would they ever be the claimant or defendent. They bought the truck, they have the clear title, its their truck. My bond is still in place to protect me and them.
In a nutshell the main person at main office at DMV as well as the bond company said yes you can sell, that's what the bond is for.
Or am I misunderstanding what you are saying?