Illinois Vehicle Title Bond

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Bond Penalty: One and one half times appraised value

Pursuant to 625 ILCS 5/3-109, an Illinois title bond may be proffered in lieu of appropriate ownership documents in order to replace a lost or defective title. The Illinois Secretary of State, Vehicle Services Department offers helpful instructions on applying for a vehicle title obtained by bond. "The Secretary mas as a condition of issuing a vehicle title, require the applicant to file a surety bond in the amount equal to one and one-half times (150%) of the current wholesale value of the motor vehicle. The purpose of the bond is to protect the Secretary of State's office and any prior owner or lienholder as well as future purchasers, owners and/or respective successors, against any loss resulting from the issuance of a certificate of title. The Illinois title bond is automatically returned to the surety at the expiration of three (3) calendar years from the date of its filing, unless the Secretary has received notification of and pending action to recover on the surety bond. A bond CANNOT however be used to obtain titles on abandoned vehicles, repossessions, mechanics liens, or to remove any lienholder."

For purposes of fixing the title bond amount, the Department offers several options for valuation. "A written appraisal of the current wholesale value may be obtained from a licensed new or used vehicle dealer (including motorcycle, mobile home and trailer dealers), a licensed rebuilder (for salvage or junk vehicles only), a licensed real estate agent (for mobile homes only) or an officer of an antique vehicle club or association (for antique vehicles only). The value may also be obtained from a used vehicle price guide such as Kelly's or NADA if supported by copies of the front cover and pertinent pages of the guide." The Department requests title applications and Illinois vehicle title bonds be submitted as follows:

Secretary of State
Vehicle Titles Division
Attn: Bonded Titles
609 Howlett Building
501 S. Second St.
Springfield, IL 62756-7000

As part of the certificate of title bond underwriting process we must request some evidence that the applicant legally possesses the motor vehicle. Examples of "ownership evidence" can be a bill of sale, power of attorney, receipt, canceled check or money order, temporary registration/maker, affidavit of legal possession or endorsed copy of at title. Need a bill of sale format? See "What We Need From You" on this page for a template.

Illinois surety bond broker, Surety One, Inc. is a specialist in the bonding needs of motor vehicle dealers and private parties with a title defect. We offer same-day issue of vehicle title bonds. Questions about this or another surety bond? Call us at (800) 373-2804, email us at or click here for live chat about your Illinois vehicle title bond requirement.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.