Bonded Title in Illinois
A bonded title lets you register and own a vehicle when you cannot provide complete ownership documentation. In Illinois, the required bond is 1.5× Fair Market Value and the title is branded "BONDED" for 3 Years.
What Is a Bonded Title?
A bonded title (also called a surety bond title or certificate of title with bond) is issued when you possess a vehicle but cannot prove complete, unbroken ownership history through traditional documentation such as a signed title, bill of sale, or inheritance records.
The surety bond protects any previous owner who might later make a valid claim to the vehicle. If a prior owner appears and can prove their ownership during the 3 Years bond period, the bond pays their claim. After the bond period expires with no claims, Illinois will issue you a clean, unbranded title.
Who Issues the Bond in Illinois?
Illinois requires a company specifically licensed to issue surety bonds in Illinois
Search for "Licensed Illinois surety company" in Illinois to find authorized insurers. National companies like Western Surety, Lexon Insurance, and IndemniCo are commonly used. Premiums are typically 1–3% of the bond amount annually.
Required Documents in Illinois
Illinois Secretary of State offices handle title applications. The VSD 190 is used for all vehicle title transactions, including bonded titles.
Available at Secretary of State offices or cyberdriveillinois.com
When Does the Bond Release?
After 3 years, file a new VSD 190 requesting removal of the bonded notation. A new title without the brand is issued.
Illinois's $150 title fee is one of the highest nationally. For low-value vehicles, the combined title fee + surety bond premium may approach or exceed the vehicle's value — evaluate whether the bonded title process is economically justified.
Bonded Title FAQ — Illinois
A bonded title in Illinois is a certificate of title issued when you cannot prove complete ownership history through standard documentation. You purchase a surety bond (1.5× Fair Market Value) and the state issues a title branded "BONDED." After 3 Years with no adverse claims from prior owners, the bond is released and you can get a clean title.
In Illinois, the title fee is $150. The surety bond premium — purchased separately from a licensed insurer — is typically 1–3% of the bond amount per year. For a $10,000 vehicle, the bond amount would be approximately $15,000 and the annual premium would be $150–$450.
Yes, you can sell a vehicle with a bonded title in Illinois. However, buyers will see the "BONDED" brand on the title and may be unwilling to pay full market value. Full disclosure to the buyer is required. After 3 Years without adverse claims, you or the buyer can apply for a clean title.
A bonded title in Illinois is valid for 3 Years. After 3 years, file a new VSD 190 requesting removal of the bonded notation. A new title without the brand is issued.