What Is an Excess Weight Permit Bond?
In many states, carriers have to get a special weight permit for excess weight vehicles. Posting an excess weight permit bond is often a requirement in the process.
The purpose of this license bond is to guarantee that carriers will cover any damages caused to state highways and roads due to their activities. A bond claim can be used to get a compensation for state or other local authorities in case a bonded carrier fails to make such payments.
Your excess weight permit bond is a three-party contractual agreement. Your transportation business is the principal. The obligee is the state authority that requires you to provide the bond. The third entity is the surety that backs your company and provides the bonding.
Questions about Excess Weight Permit Bond
Which are the states that impose a bonding requirement for excess weight permits?
In Texas, you need to post a superheavy or oversize permit bond in case you would like to get such a permit from the state Department of Transportation. The bond amount is $15,000.
Carriers in Indiana have to provide an excess weight permit bond to the state Department of Revenue in an amount set by the authority.
Carriers operating Class 2 vehicles under the Montana legislation have to provide a $15,000 surety bond to the Motor Carrier Services Division.
For operating overweight vehicles on Arkansas highways, carriers need a permit from the state Department of Transportation. You also need to post a $1,000 surety bond.
The New York Department of Transportation requires oversize and overweight permit bonds for all divisible and special load haulers. The bond amounts depend on the size and are between $10,000 and $50,000.
What is the surety bond price?
The bond amount that you have to provide is different from your actual bond cost. You have to pay a couple of percents of it, which is called the bond premium. The exact surety bond cost is set on the basis of your personal and business finances.
Your surety needs to carefully examine your personal credit score, business financials, and other liquidity and assets you may have. In this way, it assesses how risky it is to provide you with the bond. The typical rates for applicants with stable finances are between 1% and 5%.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Arkansas Excess Weight Permit Bond||$1,000||$100||$100||$100||$100|
|Texas Excess Weight Permit Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
|Montana Excess Weight Permit Bond||$15,000||$112.5-$250||$150-$375||$375-$750||$750-$1,500|
|New York Excess Weight Permit Bond||$10,000
Is it possible to get bonded with bad credit?
Yes, you can get a bad credit surety bond with Lance Surety Bonds. We have designed our Bad Credit Surety Bonds program to provide a bonding option for applicants with financial issues. If you have a low credit scores tax liens, bankruptcies, or civil judgements, this may be the right program for you.
Since the bonding risk is higher, the rates are in the range of 5% and 10%. Due to our close relations with numerous A-rated, T-listed surety companies, we are able to offer you a top bonding rate, irrespective of your credit score.
How do I get an excess weight permit bond?
Would you like to delve deeper in the process of bonding? We’ve prepared a detailed How to Get Bonded page that can answer your questions.
If you need further assistance, don’t hesitate to reach us at (877) 514-5146. Lance Surety Bonds’ specialists are here to help.