Anyone lacking a valid title for a vehicle needs to obtain a bonded title or become resigned to the fact that the vehicle in question is about to become a permanent fixture in their garage or driveway. Most often, a bonded title is needed because the seller never gave the buyer a title, or provided one that was defective or invalid, or provided a valid title that was subsequently lost or stolen before the buyer registered it in his or her own name.
How to Get a Bonded Title in Illinois?
At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Illinois bonded titles. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.
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- Apply Online
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What Is a Bonded Title?
A bonded title allows an Illinois resident claiming ownership of a vehicle that lacks a valid title to insure, register, sell, junk or otherwise dispose of the vehicle just as can be done with a regular title. A bonded title is identical in appearance to a regular one except for bearing the “BONDED” brand.
Who Needs Them?
How Do They Work?
An Illinois title bond is a legally binding contract among three parties known as the bond’s obligee, principal, and surety. The Illinois Secretary of State is the obligee requiring the bond, the person seeking a bonded title is the principal, and the company guaranteeing the payment of claims is the surety.
When a claim is filed, the surety will determine whether it is valid, and if it is, the principal is legally obligated to pay it. However, as the guarantor, the surety typically will pay the claim initially, and be reimbursed by the principal. Failing to repay that debt can subject the principal to legal action by the surety.
What Are the Steps in the Bonded Titling Process?
In Illinois, bonded titles are issued by the Secretary of State. To apply for a bonded title, you will need to speak with someone in your local DMV office to find out whether you are eligible for a bonded title. If you are, you will then need to:
- Determine the vehicle’s current wholesale value.
- Purchase a three-year Illinois title bond in an amount that is 1.5 times that wholesale value.
- Complete a Motor Vehicle Use Tax return.
- Download and complete an Illinois bonded title application.
- Submit the entire application package with all supporting documents and payment of the application fee to the Illinois Secretary of State for approval and issuance of your bonded title.
Why is a Title Bond Required?
A title bond protects the state of Illinois against any liability for damages if, during the three years that the bond is in force, it turns out that you should not have been issued a bonded title because there is another titled owner or a lienholder. If the bond expires without any claims against it, your bonded title will be replaced by a regular title.
The title bond makes you, not the Secretary of State’s office, responsible for compensating any party who has experienced a financial loss resulting from your claim of ownership. For example, if you sold the vehicle to another party, that person, as well as the vehicle’s rightful owner, could have a valid claim against your title bond.
costs
What Do They Cost?
Illinois title bonds for $25,000 or less typically are sold for a flat premium amount that’s based entirely on the bond amount. Bonds for more than $25,000 are subject to underwriting to determine the risk of the surety not being reimbursed for claims paid on the principal’s behalf. That risk is measured by the principal’s personal credit score.
A high credit score suggests that the risk to the surety is low, and the premium rate will be low as well. Conversely, a low credit score indicates a higher risk level and results in a higher premium rate.
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How Do Illinois Title Bonds Work?
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Choose Your Bond Type
Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.
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Submit a Quick Application
Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.
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Get Approved & Receive Your Bond
Get fast approval and receive your bond instantly by email. Your document is ready to use right away.
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Why Work With Us?
Easy Application Process
Simply fill out our convenient online application form to get started.
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We work with a wide range of carriers to provide many options to our clients.
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As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.
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We work to get you bonded as quickly as possible, often in 24 hours or less.
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Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.
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