Insurance Questions Answered

September 8th, 2009 | Posted by Justin Kaiser | Category: Title and Registration | Comments

Just received this from a reader of the blog…

Bob,

The rules & regs are the provence of your State DMV/MVD…

Most states these days will refer to it as a “special construction”, after all it’s no longer a 1966 VW, is it?

This is a quote you’ll want to shop extensively as it can vary by hundred’s of dollars.

Full coverage is likely to be “agreed value”. For a store bought, like “Boss Hoss”, or the new H-D trike, this coverage can be desirable.

If however it is a home built, as all mine have been, then I feel its money wasted.

Also, consider what might happen if you somehow managed to get it all done as a ‘66 VW, and then were found at fault in an accident.. I’m sure the ins.co. will cry “foul” and deny coverage liability!

TRIKE ON !!!

Received Info on Titling My Trike in IL

July 30th, 2008 | Posted by Justin Kaiser | Category: Title and Registration | Comments

A few days after calling the Illinois Secretary of States office I received the required documents for receiving a VIN and titling my trike.  

Documentation included the following…

• Secretary of State Police Specially Constructed Motorcycle Equipment Requirements form SOS DOP-172
• Secretary of State Police Specially Constructed Vehicle Fact Sheet For SOS DOP-173.1
• IL Secretary of State Vehcile Services Department Fact Sheet on Titles Obtained by Bond  form RT OPR 26.16
• IL Department of Revenue Illinois Use Tax Return Form ST-44
• IL Secretary of State Affirmation of Appraisal Form
• IL Secretary of State Security Bond for Registration Without Certificate of Title Form
• IL Secretary of State Application for Vehicle Transactions Form VSD 190.23

How To Title a Custom Vehicle in Illinois

July 11th, 2008 | Posted by Justin Kaiser | Category: Title and Registration | Comments

Big Bob is still in the planning stages and the first thing I’m working on is to find information on how to title the trike I build after it’s built.  This should be the first thing you do as well.  Hopefully you won’t have to spend the amount of time on this step that I have.  Just trying to get in contact with the person at the Illinois Secretary of States office has taken 3 weeks and I still haven’t gotten there yet.  Michelle, if you see this before I talk to you, please contact me.

 

Since I was unable to get in touch with anyone in the right department at the Illinois Secretary of States Office, I Googled “IL Custom Vehicles” and found 2 pages of relevant information.

• http://www.dmv.org/il-illinois/custom-built-cars.php
• http://www.cyberdriveillinois.com/departments/vehicles/title_registration/apply_custom_rod.html

Custom-built cars follow a more complicated process for titling and registration than do ordinary cars and trucks. In many cases, these cars are reproductions of older antique models, also known as kit cars. Others are cars that were either heavily modified or built from scratch from parts.

These unique cars are classed three different ways: as custom vehicles, street rods, or specially constructed vehicles.

Custom Vehicles

To be classified as a custom vehicle, your car must be all of the following:

• At least 25 years old but newer than 1948, or a replica of such a vehicle.
• Altered from the manufacturer’s original design or has a body constructed from nonoriginal materials.
• Used only for occasional transportation, exhibitions, club activities, parades, tours, and similar uses.
• Not used for general daily transportation.

Street Rods

A street rod is different from a “custom vehicle” in that it is older. A street rod is defined as a vehicle that is all of the following:

• Built in 1948 or older, or a replica of such a vehicle.
• Has been altered from the manufacturer’s original design or has a body constructed from nonoriginal materials.
• Used only for occasional transportation, exhibitions, club activities, parades, tours, and similar uses.
• Not used for general daily transportation.
• Registration Process

Custom-built vehicles and street rods follow the same registration processes. You’ll need to provide documentation of where the vehicle came from by supplying one of the following that shows the VIN (vehicle identification number) for the body of the vehicle:

• A certificate of origin from the manufacturer of the body.
• If not from a kit, then a title for the vehicle from which the body came.
• If you don’t have a title or certificate of origin, provide bills of sale.
• Completed certification by a National Street Rod Association (NSRA) inspector (see bottom of article).
• You’ll also need to document the source and VINs of the engine and chassis. The Vehicle Services Department gives more details about the documents needed to register your vehicle.

Send all the documentation to:

Illinois Secretary of State
Department of Police
Salvage Inspection Station
2719 S. 11th St.
Springfield, IL 62793

Don’t be surprised if you are asked to bring the vehicle to a police station for inspection before a title or registration will be issued. You may need to show all the receipts for the vehicle or its components to prove that there are no stolen parts. The department will contact you to schedule an appointment if an inspection is needed.

Instead of the above process, owners of custom vehicles and street rods may opt to use the process for registering a specially constructed vehicle, described below.

Specially Constructed Vehicles

A vehicle is considered specially constructed if it’s a type that is normally required to be registerd and either of the following apply:

• It has been materially altered from its original construction by the removal, addition, or substitution of essential parts.
• It was not originally constructed under a distinctive name by a generally recognized manufacturer of vehicles.

Registration Process

This process differs from the one above. You’ll need to provide the following:

• Three photos of the completed vehicle showing front, side, and rear views.
• Title for the chassis and all bills of sale or other ownership documents for any essential parts of the vehicles, or a certificate of origin from the manufacturer if the vehicle was assembled entirely from a kit.
• Completed title (or title and registration) application.
• Check made out to the Secretary of State for $65 (title only) or $143 (title and registration).
• Sales tax form with a check made out to the Illinois Department of Revenue for the amount of sales tax due.

Send all the documentation to:

Illinois Secretary of State
Department of Police
Salvage Inspection Station
2719 S. 11th St.
Springfield, IL 62793

This process requires an inspection; the department will contact you to schedule one.

Since the titling and registration process is complicated, we recommend that you consult the Vehicle Services Department for more detailed information.

Scheduling an NSRA Inspection

To arrange for a National Street Rod Association inspection, contact the following people:

• North of Illinois Route 17: Bob Jackson, (630) 553-9036
• South of Illinois Route 17: Dennis Yarnik, (618) 635-3752

How to Apply for Title and Registration for a Custom Vehicle and Street Rod

Public Act 92-668 added the following definitions of custom vehicle and street rod to the Motor Vehicle Code:

Sec. 1-113.1. Custom vehicle. A motor vehicle that is at least 25 years of age and of a model year after 1948 or a vehicle that has been certified by an inspector of the National Street Rod Association, on a form prescribed by the Secretary of State, to be a custom vehicle manufactured to resemble a vehicle at least 25 years of age and of a model year after 1948 and has been altered from the manufacturer’s original design or has a body constructed from non-original materials and which is maintained for occasional transportation, exhibitions, club activities, parades, tours, and similar uses and which is not used for general daily transportation. (625 ILCS 5/1-113.1.)

Sec. 1-202.1. Street rod. A motor vehicle that is a 1948 or older vehicle or a vehicle that has been certified by an inspector of the National Street Rod Association, on a form prescribed by the Secretary of State, to be a street rod that was manufactured after 1948 to resemble a vehicle that was manufactured before 1949 and has been altered from the manufacturer’s original design or has a body constructed from non-original materials and which is maintained for occasional transportation, exhibitions, club activities, parades, tours, and similar uses and which is not used for general daily transportation. (625 ILCS 5/1-202.1.)

Set forth below are the procedures to be utilized when obtaining a title and/or registration for a custom vehicle or street rod. Either of the procedures may be utilized. These procedures can not be utilized when obtaining a title and/or registration for a motorcycle.

Procedure 1

For any vehicle which meets the definition of custom vehicle or street rod, an application may be submitted for a title only or for both a title and registration. The application must include:

Source documentation for the body of the vehicle, including a Vehicle Identification Number (VIN). This documentation must be one of the following:

• A certificate of origin from the manufacturer of the body, if a new body is being utilized (e.g., as in a kit car); or
• A title for the vehicle from which the body was obtained for the custom vehicle or street rod; or
• The applicant may apply for title without ownership documentation with bills of sales utilizing the bonding procedures set forth at section 3-109 of the Vehicle Code. 625 ILCS 5/3-109.
• All applications must include a completed certification by a NSRA inspector.
• To schedule a NSRA inspection applicants North of Illinois Route 17 should contact Bob Jackson at (630) 553-9036 and applicants South of Route 17 should contact Dennis Yarnik at (618) 635-3752.
• Applicants must pay all applicable fees and sales taxes.
• The “make” of the vehicle on the title and registration will be the same as the manufacturer of the body (e.g., “Ford” if the custom vehicle or street rod is built from a Ford body, or “Superformance” if the custom vehicle or street rod is built from a kit with a body from that manufacturer).
• The “model” listed on the title/registration will be “replica” if the vehicle is constructed from a kit. If the vehicle is constructed from an original equipment manufacturer’s body, the model will be the model designation given by the manufacturer (e.g., the model listed on the title for a customized 1960 Buick LeSabre will be “LeSabre”).
• The “year” listed on the title/registration will be the year the vehicle is designed to resemble (e.g., a custom vehicle or street rod built from a 1932 Ford will have the year “1932″; a kit car built to resemble a 1965 Cobra will have the year “1965″ rather than the year the body kit was manufactured).
• The VIN listed on the title/registration will be the VIN shown on the body. (If this VIN does not conform to the layout of current manufacturer’s VINs, the Secretary of State computer program will be overridden and the VIN that appears on the body will be entered.)
• The body style listed on the title/registration will be the actual body style of the completed custom vehicle or street rod (e.g., coupe, sedan, convertible).
• At the time of the initial application for the title, the applicant must provide source documentation for the engine and chassis, including VINs.
• All above documentation must be forwarded to the Illinois Secretary of State, Vehicle Services Department, 501 S. 2nd. Street, Room 609, Springfield, IL 62756.
• The owner of a vehicle titled or registered as a custom vehicle or street rod may be required to present the vehicle at a Secretary of State Police Department facility for inspection.
• At the time of the inspection the owner must present all bills of sale or other ownership documents for essential parts of the vehicle, including the engine and chassis (if source documentation is different from documentation for the body).
• If an inspection is required, the Secretary of State Police will contact the owner about scheduling an inspection appointment.

Procedure 2

Custom vehicles or street rods may be titled and/or registered using the procedures for specially constructed vehicles. Specially constructed vehicles are defined as:

Sec. 1-192. Specially constructed vehicle. Every vehicle of a type required to be registered hereunder that: (a) has been materially altered from its original construction by the removal, addition or substitution of essential parts; or (b) was not originally constructed under a distinctive name by a generally recognized manufacturer of vehicles. (625 ILCS 5/1-192.)

To use this process, the applicant must

• forward 3 photos of the completed vehicle-front, side and rear views-along with the title for the chassis and all bills of sale or other ownership documents for any essential parts of the vehicles, or a certificate of origin from the manufacturer if the vehicle was assembled entirely from a kit.
• Accompanying this material must be a completed title application with a check made out to the Secretary of State for $65 (if only a title is being requested) or completed title and registration applications along with a check for $143, and the appropriate sales tax form with a check made out to the Illinois Department of Revenue for the amount of sales tax due.
• Forward all of the above to: Illinois Secretary of State, Vehicle Services Department, 501 S. 2nd. Street, Room 609, Springfield, IL 62756.
• After the paperwork has been approved the Secretary of State Police will contact the applicant about scheduling an inspection appointment.

Some Additional Title Information For Kit Cars and Specialty Vehicles

This is a quick summary of some options available for titling kit cars in Illinois.  This information was taken from http://www.rawilson.net/cobra/title.html

Disclaimers:

• I am not a lawyer – these are my understanding of what I’ve picked up as I’ve gotten a title for my car.
• I am not advocating any one of the below options above the other
• I do not accept any responsibility for the accuracy nor use of this information
• There may be other (better?) options available
• It is highly recommended that you investigate, on your own, which ever of these methods you choose – laws change, as do interpretations thereof.
• These are specific for Illinois, I don’t know how they will apply to other states

In Illinois only two things are recognized as valid when applying for a title – a previous title or a Certificate of Origin (COO). A COO is issued by the original car manufacturer, who must be bonded with the US government as a legitimate car manufacturer (I’m not exactly what all this is, but what it means to most of us is that we cannot issue our own COO for a kit we build). Without a COO, one must have/acquire a title (or equivalent) in order to get a title – interesting, eh? catch-22?

RUCC does not issue a “Certificate of Origin” with its kits. They do issue a “Bill of Sale” (BOS). Other kit manufacturers may or may not issue a COO with the purchase of a kit. I strongly recommend you ask for such, as having a COO greatly simplifies the process. The reasons for RUCC not issuing one is simple – in doing so, the issuer may be accepting responsiblity for the construction of the car and could be held liable in a court of law for subsequent damages and injuries as a result of faulty assembly of the kit. Note that in any event the kit manufacturer can likely be held responsible for faulty piece parts and/or faulty design.

There are three ways I uncovered for obtaining a title for a kit car:

1. Transfer a title from an existing car: If you have used a donor car for your build, you can use the title from the donor to title the new car. I don’t know how much of the donor you need to use in order to make this transfer, but be aware of this: in Illinois, only the Illinois State Police (or, I believe with new legislation that has recently taken effect, a body shop) may issue a new VIN sticker/plate for a vehicle. Hence, it’s likely that you will have to convince the State Trooper that comes to inspect your car that the kit is “one and the same” as the donor and, hence, the VIN/title can be transferred. The year of the kit on the title will be that of the year of the donor car.
2. Obtain a “Bonded Title”: this is intended for that “junker” you find in a field somewhere and cannot find the owner nor title for the vehicle, but which will also work for kit cars. To obtain a Bonded Title, you first take the vehicle in and get it appraised by a car dealer (wholesale value is ok, but the appraiser must have a dealer license which number must be included on the appraisal form). You can then take out a bond with the State of Illinois for 150% of the appraised value and apply for a Bonded Title. Your friendly local insurance agent can help with this bond – at a rate of about $20 per $1000 of bond. This bond must be for three years, after which you have title free and clear. Again, the intent of this Bonded title is to protect you if the original owner of the vehicle shows up and makes a claim to your car – they get the bond – you get to keep the car. If no claim is made within the three years, you get your bond back. This works well if the appraised value is less than $1000 or so, but gets pretty spendy if you have your completed kit appraised for $20,000 or more. The recommendation here, if you plan on going this route, is to get the kit appraised prior to assembly when it’s just raw parts (if you can find someone to do this). The down side of this, is that the car will be titled in the year in which the application for title is made. I believe you must also have a safety inspection by the Secretary of State Police prior to title application (this is undergoing change and now may require, or allow as an alternative, an inspection by the Illinois Street Rod Association).
3. Use the services of U.S. Titles or equivalent: You literally and legally sell you kit to U.S. Titles. They are in New York state, which recognizes a Bill of Sale as sufficient in order to obtain a registration for a vehicle. Additionally, they do not issue titles for vehicles built prior to 1972 (I think – I’m not sure of the exact year), but only registrations. Additionally, New York allows kit (replica) cars to be registered in the year of the car they replicate – that is a kit of a ‘32 Ford can be registered as a ‘32 Ford-R (Ford replica) even if it’s built with all new parts. Your kit must have a VIN either stamped to the frame (issued by the kit manufacturer), or use the engine block casting number (I’m not sure how this works). You sell your kit to U.S. Titles, with a notarized Bill of Sale, and all vehicle information. They register the car in NY as a 1965 Ford-R Cobra (for example). Once the registration is complete, they sell the car back to you, along with the registration. Illinois (and all other states I’m led to believe) recognize that NY does not issue titles to cars prior to 1972 and will allow the registration to serve as the previous “title” and will issue an Illinois title for your kit. Note in this case the title will be for the year the car replicates (1932, 1965, etc.).

Although not required, it’s still recommended that you get a safety inspection for your kit by the Illinois Street Rod Association.

Illinois Rebuilder Salvage Titles

Insurance companies paying a total loss claim for a vehicle eight model years of age or newer
must apply for a Salvage Certificate. Abandoned vehicles or vehicles with possessory liens by commercial relocators that are subsequently sold at public auction can be issued either a Salvage Certificate or a Junking Certificate. Likewise, a repossessed or fleet vehicle (firm with five or more vehicles) that has sustained more than 33 1/3 percent damage will be considered salvage. A salvage vehicle can either be rebuilt by a licensed rebuilder or disposed of as junk. A junk vehicle can be disassembled into parts or crushed or otherwise disposed of. A vehicle issued a junk certificate of ownership can never receive a clear title that would allow the vehicle to be registered in Illinois again.

A rebuilt salvage vehicle can be registered upon completion of appropriate inspection (eight model
years or newer). For this to happen, the licensed rebuilder (the only entity who can legally apply) must
take the vehicle to the Secretary of State inspection station and have the vehicle physically inspected
before a REBUILT title can be issued. The purpose of these inspections is to verify the replacement of
any essential parts and to inspect all ownership documents. The inspection is not intended to certify the
safety or road-worthiness of the vehicle or the quality of the workmanship. There is a fee of $94 for each such inspection. No inspection is required for a vehicle that is nine model years of age or older. The vehicle must also be inspected by the Department of Transportation and issued a certificate of safety.

The car is over 9 years old, so that could be done. But, from the looks of the car, it’s salvage value looks worth more than $100 to the insurer. Then you have to deal with getting the car fixed and re-registered, which, if it’s formally declared a total loss, requires a Rebuilder’s license in Illinois, then you have to get insurance on it, which, with a rebuilt salvage title, most insurers won’t knowingly do. I suppose you could part it out, which would involve taking space in your garage.

Retaining Your Totaled Vehicle

In an effort to minimize automobile “chop shop” crime, the Illinois Vehicle Code does not permit you the right to retain the salvage once the insurance company has deemed your automobile a total loss. There are only two instances that you may be able to retain your vehicle: 1) if the vehicle has incurred only hail damage that does not affect the operational safety of the vehicle, or 2) if the vehicle is nine (9) model years of age or older.

In some cases, the inspectors will remove parts in order to access the vehicle’s identification numbers. Generally, some or all of the following will be checked:

• Public VIN
• Transmission number
• Body number
• Federal stickers
• Engine number
• Frame number
• Any mylar stickers
• If any stolen parts are detected, they will be seized as evidence at the time of the inspection.

The fee for the inspection is $94. The fee for retitling the vehicle is $65. These fees must be paid separately at the time of the inspection, and they must be paid by check or money order. You may not use cash, debit cards, or credit cards to pay these fees.

Salvage Vehicle Inspection Stations

Inspections require appointments. Only a few offices of the Secretary of State perform this inspection. They are:

103 W. Roosevelt Road
Villa Park, IL 60181
(630) 693-0551

3301 N. Main
East Peoria, IL 61611
(309) 694-7961

2719 S. 11th St.
Springfield, IL 62703
(217) 557-2084

400 W. Main St.
Belleville, IL 62220
(618) 236-8755

Remember that you must first bring the vehicle to an Illinois Department of Transportation Safety Testing Lane for a safety test.

Consumer Warnings

After Hurricanes Rita and Katrina, thousands of water-damaged vehicles are appearing on the used car market. Titles that have been transferred from state to state may lose any indication that the vehicle was ever declared salvage.

Protect yourself from buying a salvage vehicle that wasn’t properly repaired. Be wary of a vehicle with an out-of-state title or one where the seller’s name is not the one on the title.

Also check for water damage, moldy smells, discolored carpet, and other signs that the vehicle may have been submerged.

You may also want to avail yourself of one of the many title investigation services. These title search companies will, for a small fee, check all instances of the vehicle’s VIN number on titles in every state. Even your dealer may honestly not know that he or she is selling a vehicle with a title that has been “cleaned” of the salvage designation.

When a vehicle has suffered damage that would cost more to repair than the vehicle’s market value, it may be declared salvage. It will be issued a salvage certificate of title ($4) and removed from the road?a salvage vehicle cannot be registered.

If a licensed rebuilder performs repairs on a salvage vehicle that bring it back to road-worthiness, the “salvage” branding on the title may be changed to “rebuilt.” The vehicle may then be registered and used.

Inspections for Rebuilt Vehicles

Before this can happen, though, the vehicle must pass a safety inspection at an Illinois Department
of Transportation (IDOT) Safety Testing Lane.

After that, vehicles eight model years or newer must pass a salvage vehicle inspection. This inspection is performed by the Illinois State Police. It’s not a safety inspection. Rather, the police are looking for signs that the vehicle (or any of its parts) was stolen.

You’ll need to bring quite a bit of documentation with you to the salvage inspection station. A complete list is available in the informative Salvage Vehicle Inspections brochure.