Waste Tire Hauler Bonds Explained
A lot of states across the U.S. have strict rules regarding how waste tires are transported, stored, and processed. As an important link in the disposal process, waste tire haulers are heavily regulated. They need to get licensed with a state authority, and often obtain a waste tire hauler bond.
Waste tire hauler bonds work like other surety bonds in the sense that they do not protect the holder of the bond (principal) but the state (obligee) and the public. They are underwritten by a bonding company (surety) which essentially backs an agreement between the principal and the obligee. If the bond principal violates the agreement, they and the surety are legally and financially responsible to compensate claimants.
This is why it is important to get acquainted with the specific requirements your state has on transporting waste tires, so you can stay out of costly claims. If this is the first time you’ve heard about surety bonds, we invite you to visit our What is a Surety Bond? page.
You can now begin your online application and get your free bond quote or continue reading for more useful information regarding this type of surety bond. For any questions you may have, do not hesitate to call us at (877) 514-5146.
Questions about Waste Tire Hauler Bond
Who needs to obtain a waste tire hauler bond?
Not every state requires a waste tire hauler bond as part of the licensing procedure, but many do. You should check with your state authorities before you begin your licensing procedure.
Furthermore, every state has a different definition of a waste tire hauler. For example, in Louisiana anyone who transports 20 waste tires or more (at any one time) is required to get licensed, whereas the numbers in Iowa and California are 40 and 10, respectively.
How much does a waste tire hauler bond cost?
The cost of getting bonded is dependent on several factors about you and your business. To calculate it, you first need to know the total value of the bond required from you. Here too, it is each state which determines the total value of the surety bond.
This total value is not the sum required from waste tire transporters, but is the maximum penalty that can be imposed on them if they are found to be in violation. In most states, the total value s between $10,000 and $20,000.
Waste tire haulers only pay a few percentages of this total value, known as the bond premium. The premium is determined by the surety underwriter after an evaluation of your credit report and sometimes finances. Of these, the applicant’s credit score is considered the most important. If you have good credit, your premiums will likely be between 1% and 4% of the total value of the bond. Bond premiums are usually paid annually or biannually in order for the bond to remain in force.
Here are some examples of waste tire hauler bond amounts and premiums in different states.
|Surety Bond Cost Based on Credit Score|
|>Surety Bond Name||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Louisiana Waste Tire Transporter Bond, California and South Carolina Waste Tire Hauler Bond||$10,000||$100-$150||$100-$300||$250-$500||$500-$1,000|
|Georgia Scrap Tire Carrier Bond||$10,000 (5000 tires or less per month)||$100-$150||$100-$300||$250-$500||$500-$1,000|
|$20,000 (more than 5000||$150-$300||$200-$500||$550-$1,000||$1,000-$2,000|
If you wish to learn more about surety bond costs, go to our What Does a Surety Bond Cost? page, where you can also find tips on reducing your premium.
Can I get a waste tire hauler bond with bad credit?
Yes, you can. Bad credit applicants are subject to higher premiums, because they are considered high-risk by bonding companies. This is why they also pay higher premiums, but even so they will rarely exceed 10%.
If you apply through our bad credit surety bonds program, you’re guaranteed to get the lowest premium possible. Our surety bond experts offer personalized advice on strengthening your application, which takes into account your strengths.
The only applicants that will have their application rejected are those with open bankruptcies or unpaid child support payments.
How do I apply for my waste tire hauler bond?
With us you can apply online today and get a free quote which doesn’t oblige you to continue the application process.
If you choose to proceed, we will be in touch with you to help you throughout the underwriting process, and help you meet all requirements of the bonding company. You may be asked to present business and personal financial statements and, as industry standard, sign an indemnity agreement.
Processing times can vary, but usually we can issue your bond in as little as 1-2 business days.
What happens in case of a claim?
A bond claim can happen if you violate any of the state statutes and regulations related to your industry. This is why it’s essential to stay up-to-date with all of them. The waste tire transportation industry is highly regulated, so you should check with your state agency to make sure you are logging your trips properly, transporting to only authorized facilities, and everything else that might be required by state law.
In case you are threatened by a claim, it’s best to try and work it out with the claimant outside of court. A settlement will almost always be less costly than a court case. Plus, bond claims can make it very hard for you to get bonded next time.