You bought a CRF450R on Facebook Marketplace. The seller gave you a “Bill of Sale” written on a napkin because “titles are for street bikes.” Two years later, it gets stolen from your garage. You file a claim. The insurance adjuster asks, “Please upload a copy of the Title.” You don’t have one. They close the claim.
Key Takeaways
- Proof of Ownership: Insurance pays the owner. Without a state-issued title, proving you own it (and didn’t steal it yourself) is difficult.
- MCO vs. Title: A “Manufacturer’s Certificate of Origin” (MCO) is not a title. It needs to be exchanged at the DMV for a title.
- The “Bonded Title” Route: If you don’t have a title, you must go through a Surety Bond process to get one before you crash or get stolen.
- Vin Checks: Insurers run the VIN. If there is a lien from three owners ago that was never cleared, the bank owns your bike, not you.
The “Why” (The Trap): The Paper Trail
In the off-road world, titles get lost. But in the insurance world, a Title is the only golden ticket. A Bill of Sale proves you paid money; it does not prove the seller had the legal right to sell it.
The Clause:
“We require proof of ownership and clear title to settle any total loss claim.”
The Investigation: Solving the Title Problem
I looked into how to fix this mess in 2026.
1. The DMV Surety Bond
- Process: Buy a bond (insurance for the title), have police inspect the VIN, apply for a Bonded Title.
- Time: 4-6 weeks.
- Cost: ~$150.
- Result: You get a legal title. Insurance is happy.
2. Dirt Legal (Service)
- Process: You pay them to register it in a lenient state (like Montana or South Dakota) to generate a title, then transfer it.
- Cost: ~$400.
- Result: Fast, easy, but expensive.
3. The “Bill of Sale” Policy
- Foremost/Markel: Some specialty agents can write a policy on a “Bill of Sale” basis, but they will cap the payout or require extensive proof (notarized bill of sale) at claim time.
Comparison Table: Ownership Proof
| Document | Insurance Validity (Total Loss) |
| State Title (in your name) | 100% Valid |
| State Title (signed over but not registered) | 50/50 (Delays payment) |
| MCO (Manufacturer Cert) | Valid (But implies never registered) |
| Bill of Sale (Handwritten) | Invalid (Usually denied) |
| No Paperwork | Denied |
[IMAGE: Photo of a title document next to a handwritten napkin bill of sale with a red X]
Step-by-Step Action Plan
- Run the VIN: Use the NICB (National Insurance Crime Bureau) VINCheck for free. Ensure it isn’t reported stolen.
- Get a Title Now: Do not wait for a theft. Go to the DMV this week. Use the Bonded Title process if necessary.
- Keep the Paper Trail: If you can’t get a title, keep the Bill of Sale, a photo of the seller’s ID, and proof of payment (Venmo/Check).
- Ask the Agent: Before buying the policy, ask: “I do not have a title, only an MCO. Will you pay a theft claim?” Get the answer in writing.
FAQ
Can I insure a bike with no VIN?
No. If the VIN is scratched off or missing, it is contraband. Police will seize it.
What if I have a lien on it?
The insurance check will go to the bank, not you.