Indiana owners could seek bonded titles for eligible older vehicles

Owners could apply for a bonded title for an eligible older vehicle. The vehicle must be at least 25 years old, worth no more than $20,000, and have no current title. Salvage vehicles and vehicles with liens or mortgages would not qualify. An authorized person must inspect the vehicle before the state accepts the application. Applicants must buy a title bond for one and a half times the vehicle’s value if it has a vehicle identification number, or twice its value if it has a special identification number. The title fee would be $15. These proposed rules would take effect July 1, 2026.

The motor vehicle bureau would search title records, and applicants would notify any owner or lienholder whose contact details it finds. These checks apply to bonded titles for eligible older vehicles. The applicant must send notice by certified mail if the bureau finds an owner’s or lienholder’s name and address. The bureau must find that the applicant owns the vehicle and bought the required bond before issuing a title after the fee is paid. Applicants must send notice within three business days of getting contact details, and recipients have 30 days after receiving it to respond. With no claims, the title becomes a regular title after three years for vehicles with a vehicle identification number, or five years for those with a special identification number.

A person who deliberately gives false information to get a bonded title would commit a Level 6 felony. This applies to people seeking bonded titles for eligible older vehicles. A conviction would also void that person’s bonded title. The proposed offense would take effect July 1, 2026.