Jumpin through legal hoops

I knew from the start that obtaining the title for this bike would be a very long, tedious task. I recently began this process by bringing the only evidence of a title I have to the DMV, the super old licence plate. When I explained my problem to the clerk, her instant reaction was "oh jeez". I knew what I was in for, I was at the disposal of the DMV. The kind woman understood my situation, the bike was mine through a series of  "under the table" transactions, and unfortunately I didn't have the documentation to prove it was mine. She gave me a sheet of paper telling me what to do, the first step was to contact an insurance company for a "bond". What this bond does, is ensure that if the original owner hunts me down, and says I stole this bike, the insurance company will pay him the value of the bike instead of me. My next step would be to talk with my father and ask if I can use his insurance company because rates on a vehicle, especially a motorcycle for an 18 year old boy are outrageous.