Illinois is one of many states that allow for a bonded title by obtaining an Illinois Certificate of Title Bond. These bonds can be purchased online in minutes without a credit check. Learn more about what these bonds guarantee and how to easily obtain one.
An Illinois Certificate of Title Bond is a surety bond that protects the prior owners, lienholders and future buyers of a motor vehicle against damages caused by issuing a certificate of title when the original title cannot be determined or located. These replacement titles are often referred to as “bonded titles”. A replacement title and certificate of title bond can apply to both automobiles, trucks, motorcycles, trailers, ATVs and mobile homes. However, a bond cannot be used to obtain titles on abandoned vehicles, repossessions, mechanics liens or estates, or to remove a lienholder.
An Illinois Certificate of Title Bond guarantees that the person seeking a new title (the principal) and the surety bond company (the surety) will pay expenses or damages to those harmed by the State’s (the obligee) issuing of a duplicate title. This includes interest and reasonable attorney’s fees. The bond wording says:
An Illinois Certificate of Title Bond needs to be in an amount of one and one half times the vehicle’s value. For example, a vehicle with a value of $10,000, would need a bond in the amount of $15,000. The vehicle’s value is the wholesale value of the vehicle. This is the trade-in value of a vehicle, or the value of a vehicle sold between licensed dealers. A wholesale value is not the retail value of the vehicle.
A written appraisal must be obtained for the vehicle’s wholesale value. A written appraisal of the current wholesale value of the vehicle from a licensed new or used vehicle dealer. The appraisal also may be obtained from a used vehicle price guide, supported by copies of the front cover and pertinent pages of the guide, or printed from an online source. A licensed rebuilder may be used for salvage or junk vehicles and a licensed real estate agent may be used for mobile homes. For antique vehicles, an officer of an antique vehicle club or association may be used as these values may be difficult to obtain. None of these parties may provide an appraisal for their own vehicle. It must be a disinterested party.
There is no minimum amount of bond required for a Certificate of Title Bond but the Secretary of State’s office may question the value of any vehicle’s value if it is inappropriate.
To avoid another trip and possibly additional costs, make sure that all appraisals contain the following information:
Illinois Certificate of Title Bonds can be purchased online without a credit check in most cases. Credit checks will only apply on bonds larger than $50,000. An applicant can enter their information, purchase and print their bond in minutes. Applicants will need to provide their contact information along with the year, make, model, body type, and Vehicle Identification Number (VIN). Additionally, the applicant will need to know the value of the vehicle to get the required bond amount.
Yes. These bonds usually do not require a credit check through Axcess Surety so anyone can obtain them. Even those with credit challenges can purchase these bonds quickly and easily online. For large requests, Axcess Surety works with the best bond companies in the industry and can still obtain approval for almost any situation.
Illinois Certificate of Title Bonds Cost about 1% of the bond amount for most applicants. For example, if a title bond is required for $15,000, the cost will be $150. The cost for these bonds depends on the bond company.
A person or company known as the principal pays premium and agrees to indemnify a third-party surety bond company (the surety) for losses. In return, the surety provides a financial guarantee to the State of Illinois (the obligee) agreeing to pay damages to them and any party harmed by the issuing of a new title.
Any person has the right to recover against the bond for breach of its conditions. If this happens, the surety bond company will investigate the claim. If the claim is valid, the surety will pay out on the bond. The surety can then seek reimbursement from the principal under the general indemnity agreement.
Regardless of the number of claims filed against the bond, or the dollar amount of claims, the bond limit (bond penalty) is the most that the surety is required to pay.
Illinois Vehicle Title Bonds must be in place for a three year period. After three years, the certificate of title bond will no longer be needed.
The state of Illinois will allow an individual or business to post a cash bond instead of a surety bond. The cash bond must still be in the same amount and for the same length as a surety bond. While a cash bond may be cheaper, it is rarely a better choice. It will tie up an individual's cash for 3 years. Additionally, if the principal does not claim their cash shortly after the three years, the State can claim the money under escheat. Read more about Surety Bonds versus Cash.
The following items are needed to obtain a title by bond in Illinois.
All of these documents should be submitted to the nearest Secretary of State’s office. Tags and plates will be issued after the documents have been submitted and approved.
Getting a Certificate of Title Bond in Illinois is very easy and most can be purchased online in minutes without a credit check. Make sure to have all other information for a bonded title to submit to the Secretary of State as well. The people at Axcess Surety are bond experts. With the nation’s leading bond companies, we can find surety bonds solutions for customers in all situations and circumstances. Contact us today.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
