Car Wash Bond

It’s important to know that all surety bonds have a total value, which does not refer to the sum that principals are required to pay to get bonded. Instead, it is the maximum protection that the car wash bond offers if an employee files a successful claim.

The total value of the bond is determined by the obligee. For example, a California car wash bond is valued at $150,000, while New York City may require anywhere between $150,000 and $30,000 based on the number of employees. If the car wash signs a bona fide agreement with a labor organization representing the employees, the total bond amount can be as low as $30,000.

What car washes pay to get bonded is known as the bond premium. Bond premiums can be as little as 0.75% - 2.5% of the bond amount for applicants with good credit.

Getting bonded with bad credit can be more difficult, because sureties read the information in your credit report to determine your likelihood of triggering a claim.

For this reason, we offer the bad credit surety bonds program. Through it, you can still get bonded, at rates normally varying between 2.5% and 10% of the total bond amount. Our experts can help you build a strong application, so you get the lowest premium as possible. Some factors, such as industry experience or a strong financial profile, can help reduce your premium.

For more tips like these, be sure to check out our What Does a Surety Bond Cost? page.

We offer a secure and easy-to-use online application thanks to which you can apply for your surety bond in just minutes. We will contact you shortly after you submit your application to help you complete it.

Our processing times are fast, so you can expect your bond form by mail soon after payment.

As we mentioned, car wash bonds ensure that car wash owners pay wages and benefits in full. Failure to do so can lead to a claim against your bond. Successful claims need to be reimbursed by the principal in full.

We always advise bond principals to stay out of claims, as they can be costly, time-consuming, and make it harder to get bonded in the future.

However, claims can still be made against you even if you were not in the wrong. In that case, the surety that provided your bond will hear both sides of the story, and they may help you fight the claim in court. It’s always advisable to keep communication with the claimant well-documented in order to build a strong court case.