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Texas Surety Bonds


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Getting a Surety Bond in Texas

The Lone Star State is home to numerous surety bond requirements. Fortunately, the friendly bond experts at Surety Bonds Direct are experienced in navigating the wide array of Texas bond requirements and providing customers with quality bonds at the best prices. Motor vehicle dealers, freight brokers, truckers, adjusters, mixed beverage establishments, and many others are subject to surety bond requirements in the state of Texas. Whether you have good or bad credit, or are starting a new business, request a quote from us today to see the benefits of going direct for your surety bond needs.

The Most Common Texas Surety Bonds

The cost of a surety bond in Texas is defined as a percentage of the bond coverage, amount, penalty or limit. Most Texas surety bonds range in cost from 0.5% to 3.0% of the bond amount. Factors that influence the cost of a particular bond include the owner’s personal credit history, business credit history, years in business, and professional license history. A good surety bond agent will identify the best price among A-rated national surety companies for each individual applicant based on the specific situation.

Some Texas surety bonds can be purchased without a credit check or any other consideration of the applicant’s financial wherewithal. Other types of surety bonds such as bonds in excess of $100,000 or those which provide a strict financial guarantee require much more extensive underwriting. These surety bonds may involve an in-depth review of personal financial statements including asset verification along with a review of audited business financials. In some cases, a co-signer or a commitment of collateral deposit (typically cash or cash equivalent) may be used in Texas to strengthen an application and secure an approval.

The risk of a surety bond is underwritten by an entity called a surety company. The risk of a loss or a claim is transferred to the surety company, effectively providing an indemnification or guarantee to the bonded client in exchange for the premium. As a client, it is important to use a fully license, authorized and financially sound surety company to back your surety bond. As your agent, Surety Bonds Direct ensures this is the case by exclusively working with AM Best A-rated surety providers.


Surety bonds are required in Texas for several different state occupational business licenses across a wide spectrum of industries. Additionally, bonds may be needed for individuals to properly register and claim ownership of a car or other motor vehicle when the original title is lost, defective, or has been stolen.

Texas surety bonds vary significantly with regard to required coverage amounts. Most bonds that are needed in connection with a business license application or renewal typically range from $5,000 to $100,000 in required bond coverage. Surety bonds needed due to a lost or defective motor vehicle title are written in a coverage amount or limit equating to 1.5 times the vehicles value as required by the Texas Department of Motor Vehicles. This bond amount can be estimated on the Texas DMV website.

Larger surety bonds in Texas include contract bonds and probate bonds. Contract bonds are required by construction project owners to guarantee a general or specialty contractors performance and payment obligations pursuant to the terms of the construction contract. These bonds typically ranging in amounts or limits of $100k to several million dollars based on the value of the project.

Probate bonds are a type of fiduciary bond required of courts across the state of Texas. Probate surety bonds serve to indemnify the duties of guardians, administrators, trustees, executors and other appointed fiduciaries. These bonds are purchased to cover custodians of the estate of a deceased person, a minor or an incompetent individual. More specifically, probate bonds protect the court, organization or heirs of an estate in a situation where assets are improperly distributed or when the fiduciary engages in other unethical behavior in administering the probate process.

A few of the most common surety bonds in Texas include Motor Vehicle Dealer Bonds, Mixed Beverage Sales Tax / Gross Receipts Tax Bonds, Freight Broker BMC 84 Bonds, and Over Axle / Over Weight Permit Bonds.

An Independent (GDN) motor vehicle license is the basic Texas motor vehicle dealer license that authorizes a person to buy, sell or exchange the type of used vehicle for which the GDN license is issued in the state. The Texas Department of Motor Vehicles requires that used auto dealers engaged in the GDN categories of motor vehicle, motorcycle, wholesale only, wholesale motor vehicle auction and independent mobility motor vehicle all furnish a surety bond to legally operate in the state of Texas.

Texas residents and businesses having applied for a permit required by the Texas Alcoholic Beverage Code in accordance with Chapters 151 and 183, Texas Tax Code must furnish a Mixed Beverage Sales Tax or Gross Receipts Tax Surety Bond to the  Texas Comptroller of Public Accounts. The purpose of this surety bond is to guarantee that the bonded principal pays all taxes, interest, penalties and costs accruing against the account.

Although the Freight Broker BMC 84 Bond is technically a federal bond requirement mandated by the Federal Motor Carrier Safety Commission (FMCSA), numerous Texas transportation brokers, motor carriers, ICC brokers, freight forwarders and related trucking businesses are subject to this bonding requirement. At Surety Bonds Direct, we file freight broker bonds electronically with the FMCSA on your behalf free of charge.

Lastly, motor carriers with vehicles and loads exceeding legal size and/or weight limits in Texas must secure an oversize/overweight (OS/OW) permit from the TxDMV to legally travel on Texas roadways. In many cases, a surety bond must also be filed with the Texas DMV (TxDMV) in an amount set by the Texas Department of Transportation (TxDOT) and payable to TxDOT.

The purpose of the Overweight or Super Heavy Permit Bonds is to help cover damages and other wear and tear on the highway from operation of the equipment for which the corresponding permit is issued. The surety bond may be required when a permit is issued to operate under the provisions of Chapter 623, Transportation Code. A similar surety bond is also required for several Texas counties including Chambers, Fort Bend, Harris, and Montgomery.


Key government authorities (referred to as “obligees”) requiring surety bonds in the state of Texas include;


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