What is an oversize or overweight permit bond?
Some businesses that use oversize/overweight vehicles or commercial trucking fleets must obtain a license and permit bond to operate on state roadways. Various states, counties, and municipalities may require this bond. Permit agencies that regulate the industry ensure large vehicles travel safely and use designated roads and routes at approved times.
This bond may go by various names depending on where you operate, including the following:
- Highway use tax bond
- Highway or hauling performance bond
- Over axle and over weight permit bond
- Highway use tax or permit performance bond
Get Your Oversize or Overweight Permit Bond:
- Some businesses that use oversize/overweight vehicles or commercial trucking fleets must obtain a bond to operate on state roadways.
- An oversize or overweight permit bond guarantees that truckers follow specific permit schedules and prevent damage to public structures like roads, bridges, and pavement.
- The bond may also ensure that a business can maintain operations even if unforeseen events occur.
How do oversize and overweight permit bonds work?
An oversize or overweight permit bond guarantees that truckers follow specific permit schedules and prevent damage to public structures like roads, bridges, and pavement. Suppose a trucker causes damage, fails to pay applicable taxes or fees (to maintain public transportation systems), or violates another law or regulation. In that case, someone may file a claim on the surety bond.
This surety bond is a three-party agreement that involves:
- An obligee: The entity that requires the bond (the state or local authority)
- A principal: The motor carrier or hauler that must purchase the bond to operate
- A surety: The company that underwrites, issues, and backs the bond
The bond may also ensure that a business can maintain operations even if an unforeseen event occurs (such as a lawsuit). If someone files a claim on your oversize or overweight permit bond, the surety company will investigate to determine if the claim has merit. If it’s valid, the surety may cover the costs to settle the claim. Then you must make the surety whole.
Overweight or Oversize Permit Bond Requirements
You may need this bond before your license or permit is activated to operate an overweight or oversize vehicle. Various states require this surety bond, including New York, Texas, North Carolina, Louisiana, Pennsylvania, Indiana, and others.
How much does this permit bond cost?
The cost of your surety bond will depend on various factors, including where you wish to operate and your credit score. If you have excellent credit, you may pay as low as 1% of the total bond amount required. So if your bond requirement is $15,000, you might pay as little as $150 for your bond premium.
Get an Overweight or Oversize Permit Bond in Your State
ZipBonds is the fastest and most secure way to get the surety bond you need. We take out the pain of long, complicated applications. Most of our bonds are approved and processed immediately. Get your permit bond by applying below – or call us directly so we can walk you through the process.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.