Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Illinois title bond needs. Learn more about the Illinois bonded title process, below.
What Is a Bonded Title?
A bonded title will allow you to do the same things you can do with a standard title: insure, register, or transfer ownership of a vehicle. You’ll need to obtain one if you did not receive a valid certificate of title from the party who sold you the vehicle, or if the title you received was lost or stolen before you were able to register the vehicle in your name.
An Illinois bonded title is secured by a surety bond, an Illinois title bond, which is your guarantee that you are the vehicle’s rightful owner. If it turns out that you are not, the bond ensures compensation for the true owner or lienholder who files a claim during the three years that it’s in force. It also provides a way to pay damages to anyone you may have sold the vehicle to during that time.
If your Illinois title bond expires without any claims having been filed against it, you can exchange your bonded title for a standard certificate of title.
Who Is Eligible for a Bonded Title?
You’ll need to contact your local DMV, explain why you need an Illinois bonded title, and see if you are eligible. Make sure they understand that you are inquiring about a bonded title, not a duplicate title certificate for a vehicle already registered in your name. Obtaining a duplicate certificate does not require a surety bond. You cannot obtain a bonded title for an abandoned vehicle.
How Do I Get a Bonded Title?
There are several steps you must complete in order to obtain a bonded title:
- Submit any evidence you have of your ownership of the vehicle, such as a bill of sale. If you have no evidence, create a written explanation of how you came into possession of the vehicle and get it notarized.
- Obtain the vehicle’s current wholesale value from an authorized source.
- Purchase an Illinois title bond in an amount equal to 1 ½ times the vehicle’s value.
- Complete a Motor Vehicle Use Tax Return.
- Complete the application for an Illinois bonded title and submit it, along with the rest of your paperwork, the surety bond, your Motor Vehicle Use Tax payment, and the application fee to the Illinois Secretary of State’s Office.
- If you are informed that there is an existing lienholder, you won’t be able to get an Illinois bonded title unless you first obtain a lien release.
- After approval of your application package, you’ll be issued a bonded title which will arrive in the mail.
How Are Title Bond Claims Paid?
If a valid claim is filed against your Illinois title bond during its three-year term, you are legally obligated to pay it. The usual practice is for the surety company to pay the claim on your behalf and then collect reimbursement from you.
How Much Does a Title Bond Cost?
The premium for an Illinois title bond is a small percentage of the required bond amount. Your premium rate will be set by the surety bond company based primarily on your personal credit score. If your credit is good, you should qualify for a premium rate in the range of 1% to 2%.
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Our surety bond professionals will get you the Illinois title bond you need at a competitive rate.