If you need to raise bail but don't have enough money to cover all your costs, then a bail bondsman can help. These companies pay bail to get their clients out of jail. However, this help comes at a cost. You'll have to pay a premium fee before they will post bail for you. How do bail bond premiums work? What do you need to know about them?
What Are Bail Bond Premiums?
A bail bond premium is the non-refundable fee you pay when a bail bonds service agrees to post bail for you. While you don't have to pay all your bail here, you do have to give your bondsman some money upfront to cover their costs.
So, for example, if your bail is set at $20,000, and your bail bonds service charges a 10% premium fee, then you pay them $2,000 at the start of the bail process. Once you make this payment, they will pay all your bail for you, and you will be released from jail.
Keep in mind that this premium fee isn't the only financial commitment you make to your bail bonds company. They will have covered the rest of your bail amount to get you out of jail.
So, they will also want some type of collateral, such as a property or vehicle, to cover your total bail amount. If you don't turn up for your court dates and abscond, then the bail bonds service can use this collateral to get all their money back.
Who Sets Bail Bond Premium Charges?
Bail bond premium fees are usually state-controlled. So, for example, a state might set an upper cap limit of 15% on these premiums.
This limit dictates how much a bail bonds company can charge you for their services. If they have a 15% limit, then this is the highest premium rate they are allowed to charge. They can go lower, but they can't go higher.
How Do You Pay Bail Bonds Premiums?
A bail bonds service will only post bail for you once you have made your premium payment and signed their financial agreement. However, this doesn't necessarily mean that you have to pay in cash immediately.
If you can't raise your premium sum immediately, then your service might allow you to use a payment plan. Here, you pay a deposit and agree to a set number of repayments to cover the premium charge.
To find out more, contact local bail bonds services.
Share25 July 2023
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.