How much does a $10,000 surety bond cost?

Surety bonds are legal and financial agreements made between three parties, used to ensure that obligations between those parties are upheld. These parties are known as the principal (usually a business owner), the surety (a bonding company) and the obligee (usually a government department or another governing body with the ability to oversee regulation).

The principal is obligated to post a surety bond by the obligee, and the surety is the company which guarantees that bond. For example, any given motorized vehicle dealer (the principal) is subject to several regulations as laid out by the Department of Motor Vehicles (the obligee).

The DMV requires that these dealers hold a surety bond to guarantee their accordance with the regulations to which they are held, and to provide readily available funds should they violate those regulations.

If those regulations are violated, and a consumer makes a claim against the auto dealer, then the bonding company (the surety) with whom the principal has posted their surety bond has finances prepared to compensate the consumer in the case of a valid claim.

Depending on the industry in which a principal operates, and the scale upon which they operate, the value of surety bonds, otherwise known as the bond amount, can vary. For example, farming contractors in some areas of Nebraska require bonds to the value of $5,000, whereas some firms require bonds worth more than $1,000,000.

In most cases, the value of a given security bond and the cost of the bond are not the same thing. For example, the cost of a $10,000 dollar bond will vary depending on a number of factors, and will often cost between $100 and $1,000. The exact number varies between the different types of surety bonds, and the credit score of the business owner applying for the bond.


For applicants with good credit, the surety bond premium is often between 1% and 3% of the total value of the surety bond. This means that for a surety bond of $10,000, it is normal for an applicant with strong credit history to pay the surety company between $100 and $300.

How to get a $10,000 surety bond with bad credit

Underwriters in the surety industry consider any credit score below 599 as “higher-risk”. For business owners who fall into this category of bad credit, it is normal to pay a higher percentage of the overall bond value.

This is normal practice amongst bonding companies, as they always seek to mitigate their own risk, and raising the bond price for“higher-risk” applicants is one such way for them to do so.

For applicants with bad credit, it is normal for surety companies to charge within the range of 5% and 10%. At these rates, the surety bond premium on a bond worth $10,000 will cost between $500 and $1,000.

In most cases, however, it is still possible to access surety bonds without a perfect credit history. Whilst the rates may be higher, Lance Surety Bonds are specialists who take pride in helping their customers access surety bonds for the best price available. If you are concerned about your personal credit, and want help accessing a surety bond, then you can apply for a free quote or begin the online bonding process here.

Most Common $10,000 Surety Bonds

Auto Dealer Bonds

Different motor vehicle dealers require different bonds, depending on where, and the scale at which, they operate. California, for example, requires that wholesale dealers of motorcycles and ATVs post bonds worth $10,000. If you are looking to bond an auto dealer, you can check here to see the surety bond requirements for your state.

Contractor License Bonds

Contractor Licenses cover work at a wide variety of scales. Subsequently there is often variety in the required surety bond amount. However, some areas in Illinois, Nevada and Oregon specifically require $10,000 bonds.

Notary Bonds

Some states stipulate that notary publics must post a $10,000 bond to meet licensing requirements for notary commissions. For example, Texas law requires all notaries to purchase and maintain this type of notary surety bond amount to protect the public of Texas against any financial loss due to improper conduct.

For more detailed information on how much your $10,000 bond will cost, your best option is to begin your online application now and ask for a free bond quote.

About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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