The risk associated with a specific bond type directly affects its cost. Tennessee notary bonds, for instance, have limited risk, so they can be issued for a low rate instantly without a credit check. Tennessee auto dealer bonds, on the other hand, inherently have more risk, so the cost is subject to a review of the applicant’s financial credentials during an underwriting process.
For bonds subject to underwriting, standard market rates are typically calculated at 1-3% of the bond amount. Provided an applicant qualifies for a standard market, a $25,000 bond would likely cost just $250-$750.
Requesting a free surety bond quote is the best way to determine what your exact premium will be. You can request a free quote online instantly, or call 1 (800) 308-4358 to speak with an experienced bond expert. SuretyBonds.com is dedicated to providing every client with the bond they need for the lowest rate available.