Overview of Mileage Tax Bond Requirements in Illinois
Motor carriers in Illinois using public highways are required to post a mileage tax bond for every vehicle they operate.
This surety bond makes sure that motor carriers comply with state laws pertaining to the use of highways. It also protects the state, and ensures that second division vehicle owners pay “all money becoming due by reason of the operation of the second division vehicle in this State, together with all penalties and interest thereon.”
If a motor carrier fails to meet their financial obligations with the state of Illinois, the latter can file a claim and seek compensation from the surety bonds company which provided the bond. The role of the surety is to provide quick recourse in such cases. However, the ultimate liability still lies with the motor carrier. In this respect, the mileage tax bond is just like other surety bonds in Illinois.
Read on to find out how you can calculate your bonding costs, save on your premium and apply online using our simple online application form. For any questions, call our surety experts at 866.450.3412!
Illinois Mileage Tax Bond Cost
Each surety bond has a total value referring to its maximum coverage (or maximum liability of the surety and the principal). In this particular case, the total amount is calculated by adding $500 for each vehicle you operate within Illinois. Let’s say you have 20 vehicles. This would make your bond amount (i.e. maximum liability) $10,000.
However, this is not the price you are expected to pay. These types of bonds are paid in annual premiums, which in most cases are a small fraction of the full amount. Your premiums are calculated after an evaluation of your credit and finances. Applicants with a good credit will normally be quoted at between 1% and 3%. To use the $20,000 mileage tax bond as an example, this would translate into yearly payments of between $200 and $600.
If you have strong financial statements and can provide proof of liquid assets such as cash on hand, your premium can go down even if you have a lower score. Be sure to check out our surety bond cost guide for more detailed information and cost-saving tips.
Getting Bonded with Bad Credit
Through our Bad Credit Program we can successfully provide an Illinois mileage tax bond for almost 99% of our applicants. Exceptions include applicants with open bankruptcies or late child support payments.
Since credit score is very important during the underwriting process for most bonds, if you have a low score (considered as a FICO of 650 or below) you will need to pay a higher premium: usually in the 3% - 10% range. However, if you can provide proof of strong finances, this can drive your cost down. Be sure to talk to our agents, and they will be happy to provide some tips on how you can strengthen your application.
Start Your Application Today!
If you’re ready to get your bond, start by submitting our one-page application form and we’ll get in touch with you shortly. We will need ownership information, as well as some additional documents that our agents will help you with.
We will then contact you with a free bond quote and instructions on what comes next. After processing your paperwork and payment, we’ll be ready to get your bond signed and mailed to you in between 24 and 48 hours.