Transferring Auto Insurance In Illinois: How Long Does It Take?

If you're transferring auto insurance in Illinois, you'll need to be aware of the state's insurance requirements. Illinois law (625 ILCS 5/7-601) mandates that all vehicle owners have a minimum amount of auto liability insurance. This includes bodily injury coverage of at least $25,000 per person and $50,000 total per accident, as well as property damage liability coverage of at least $20,000 per accident. Additionally, lending institutions may require physical damage insurance for financed vehicles. When transferring auto insurance, it's important to act promptly to avoid any gaps in coverage and ensure compliance with state regulations.

Title transfer when gifting a car to family

When gifting a car to a family member in Illinois, the title transfer process remains the same as a regular sale.

Firstly, you need to sign the title and give it to your family member. The family member then needs to submit an Application for Vehicle Transaction(s) (Form VSD 190) within 20 days to get the title in their name. They must also submit a Form RUT-50 and pay any applicable taxes.

The total cost of title and registration in Illinois could be more than $300 depending on the situation. The title transfer fee is $150 and the registration fee is $151 for a passenger car, $41 for a motorcycle, and $164 for a personalised plate.

The process of gifting a car in Illinois is as follows:

• Negotiate the terms of the gift: Although you are gifting the vehicle, there will still be costs and payments to make, so it is important to decide who will be responsible for these.
• Record the gift with a bill of sale: This acts as a permanent legal record of the exchange, protecting you from any legal disputes in the future. Make sure the report of sale is signed by both you and the recipient to demonstrate that you both agreed to the terms of the gift.
• Complete an Illinois title transfer: The title transfer officially grants ownership of the vehicle to the recipient. You—the current owner of the vehicle or “seller”—and the recipient (the “buyer”) need to fill out and sign the vehicle title. You must also record the odometer reading and the car’s VIN (vehicle identification number).
• Make sure the car is covered by Illinois car insurance: Before the recipient drives the vehicle, make sure it is covered by a valid Illinois insurance policy.

It is worth noting that in Illinois, you can only give a car as a gift to a family member. If you are financing a car to give to someone, you will need to leave it in your name until it is paid off, or co-sign the loan so it is in the recipient’s name.

Transferring a title after the owner's death

In Illinois, the Secretary of State's Office handles the vehicle title transfer process, instead of the DMV. The procedure for transferring a vehicle title after the owner's death depends on whether the title was in the decedent's name only or in joint ownership.

Transferring a Title from a Sole Owner to a New Owner

If the vehicle is titled only to the deceased person, the estate will transfer the car title to the new owner. If the estate is probated, the new owner will need:

• A certified copy of letters of administration or testamentary that names the estate's legal representative.
• The vehicle title assigned to the new owner by the estate representative.
• The Application for Vehicle Transaction(s) (Form VSD 190).
• The $165 title fee and any applicable registration fees as specified on the application, made payable to the Secretary of State.
• Proof of compliance with the Vehicle Use Tax (RUT-50) and appropriate taxes as specified on the form, made payable to the Illinois Department of Revenue but submitted to the Office of the Secretary of State.

If the estate is not probated and the value of the personal estate is less than $100,000, the new owner will need:

• A certified copy of the will, if one exists.
• A copy or abstract of the death certificate.
• A Small Estate Affidavit with the year, make, model, and Vehicle Identification Number (VIN) of the vehicle.
• The vehicle title, which does not need to be assigned.
• The Application for Vehicle Transaction(s) (Form VSD 190).
• The $165 title fee and any applicable registration fees as specified on the application, made payable to the Secretary of State.
• Proof of compliance with the Vehicle Use Tax (RUT-50) and appropriate taxes as specified on the form, made payable to the Illinois Department of Revenue but submitted to the Office of the Secretary of State.

Transferring a Title from a Jointly Owned Vehicle

If you are the joint owner of a vehicle, ownership will pass to you after the death of the other person. In this case, you can either title the vehicle in your own name or transfer the title to someone else. To title the vehicle in your name, you'll need to submit:

• The death certificate (copy or abstract).
• The original vehicle title, if available.
• If the title is missing, an affidavit that states the title is lost and why it's being transferred.
• The Application for Vehicle Transaction(s) (Form VSD 190).
• AN ADDITIONAL application is required to correct the vehicle registration if you plan to drive the vehicle.
• Payment for your title fees.

To transfer the title to someone else, you'll need to give the buyer or new owner:

• The death certificate (a copy or an abstract).
• The IL vehicle title, properly assigned to the new owner.
• The new owner will then complete the title transfer process for a private sale.

Title transfer from a dealership

When you buy a vehicle from a dealership in Illinois, the process is relatively straightforward. The dealership will handle the title transfer and registration paperwork for you. They will submit the necessary documents to the Illinois Secretary of State (SOS) office on your behalf.

Obtaining the Title:

Get the certificate of title from the dealership. Ensure that it includes all the necessary information, such as the Vehicle Identification Number (VIN), odometer reading, date of purchase, and the seller's signature.

Application for Vehicle Transaction:

You will need to complete the Application for Vehicle Transaction(s) (Form VSD 190). This form is available through the state's Electronic Registration and Title System (ERT System). You will need certain information, such as your driver's license number, to access the site. The ERT System allows you to complete and print the application form.

Private Party Vehicle Tax Transaction Form:

Along with the title and application form, you will need to submit a completed Private Party Vehicle Tax Transaction Form (Form RUT-50). This form is available at IL SOS offices.

Payment of Fees and Taxes:

You will be responsible for paying the applicable fees and taxes associated with the title transfer. These fees can vary depending on the vehicle type and any additional services required, such as a new plate fee or lien removal fee.

Submission of Documents:

You can submit the completed forms and payment to the IL SOS office in person or by mail. The address for mail-in submissions is:

Vehicle Services Department

501 S. 2nd St, RM 014

Springfield, IL 62756

Processing Time:

The processing time for a title transfer can vary. On average, it takes about six weeks to receive the certificate of title from the SOS office. If there are any delays or if you need expedited service, you may need to contact the SOS office or visit them in person.

Temporary Registration:

If you are applying for personalized or specialty license plates, the SOS office can issue a temporary registration permit (TRP) while you wait for your permanent plates to arrive.

Additional Documents:

Depending on your specific circumstances, you may need to submit additional documentation. For example, if there is a name change due to marriage, divorce, or death, you will need to provide relevant documents such as a marriage certificate or death certificate.

Out-of-State Transfers:

If you are transferring a title from out of state, there are a few additional steps. You will need to provide proof of residency in Illinois and your current registration. The title fee for an out-of-state transfer is $50, and you will also need to submit Form RUT-25 or "Vehicle USE Tax Transaction Return."

Online Services:

It's important to note that Illinois offers online services for title transfers through private companies like eTags. These services can streamline the process and eliminate the need for in-person visits or waiting in lines.

Transferring a title from an individual

The process of transferring a vehicle title in Illinois depends on whether you are purchasing the vehicle from a dealership or a private seller. If you are buying from a dealership, they will submit the auto title transfer and registration paperwork to the Illinois Secretary of State (SOS) on your behalf.

However, if you are buying from a private seller, you will need to handle the title transfer yourself. Here is a step-by-step guide to help you through the process:

• Obtain the Title from the Seller: Get the car title from the seller, ensuring that it includes the Vehicle Identification Number (VIN), the odometer reading, the date of purchase, and the seller's signature in the "Assignment of Title" section.
• Complete the Required Forms: You will need to fill out the Application for Vehicle Transaction(s) (Form VSD 190) and the Private Party Vehicle Tax Transaction (Form RUT-50), which is available at IL SOS offices. If you are transferring the title from a deceased owner, you may need additional documentation, such as a death certificate or probate paperwork.
• Submit the Forms and Payment: Submit the completed forms and payment for fees and taxes to the SOS office. You can do this in person or by mail. The address for mail-in submissions is: Secretary of State Vehicle Services Department, 501 S. 2nd St, RM 014, Springfield, IL 62756.
• Remove License Plates: If you are selling your vehicle privately, remove the license plates before handing the car over to the buyer. You may be able to transfer these plates to your next vehicle.
• Complete a Seller's Report of Sale: As the seller, fill out the Seller's Report of Sale (Form VSD 703) to release yourself from responsibility for the vehicle. Mail it to the address provided on the form.
• Wait for Processing: It typically takes about six weeks to receive the certificate of title from the SOS office. If you experience a longer wait time, you may need to follow up with them.

It is important to note that transferring the title is crucial whenever vehicle ownership changes. Without the title in your name, you cannot register or insure the car, and you do not have the legal right to drive the vehicle. Additionally, failing to comply with Illinois state laws regarding title transfers can result in fines or other legal consequences.

Title transfer with an out-of-state title

If you're a new resident of Illinois, you have 30 days to get an Illinois title and register your car in the state once residency has been established. To transfer an out-of-state title, you'll need the following:

• An Application for Vehicle Transaction(s) (VSD-190)
• Odometer mileage
• A description of the vehicle, including the year, make, and model
• A list of any lienholders, if applicable
• Form RUT-25, and pay any applicable taxes
• If the vehicle is leased, you'll also need the original out-of-state registration, the current out-of-state title, and the Manufacturer's Certificate of Origin (MCO)

You can submit these documents in person at a local Secretary of State office or mail them to:

Office of the Secretary of State

Vehicle Services Department

014 Howlett Building

Springfield, IL 62756-6666

The cost of a title transfer in Illinois is $155 for a new title and $50 for a replacement. Registration fees are $151 for a passenger vehicle.

It's important to note that you must have valid auto insurance in Illinois before registering your vehicle. The insurance verification process is handled electronically, and your vehicle's liability policy will be verified at least twice a year through a third-party vendor.

Frequently asked questions