{"id":11194,"date":"2015-09-24T11:13:19","date_gmt":"2015-09-24T16:13:19","guid":{"rendered":"http:\/\/www.suretybonds.com\/blog\/?p=11194"},"modified":"2026-02-09T10:48:39","modified_gmt":"2026-02-09T16:48:39","slug":"expert-qa-how-to-get-the-best-deal-on-your-freight-broker-bond","status":"publish","type":"post","link":"https:\/\/www.suretybonds.com\/blog\/expert-qa-how-to-get-the-best-deal-on-your-freight-broker-bond\/","title":{"rendered":"Expert Q&A: How to Get the Best Deal on Your Freight Broker Bond"},"content":{"rendered":"

Are you a freight broker or forwarder? Does your current surety bond expire soon? Surety expert Bob Wolf<\/a> offers\u00a0some insider tips for your renewal, including\u00a0how\u00a0you could\u00a0net a lower premium for your bond.<\/p>\n

What can freight brokers do to lower their surety bond premiums?<\/b><\/h2>\n

If your business has been licensed with the FMCSA\u00a0for more than a year and you have verifiable financial stability, you will likely qualify for the industry’s lowest rate<\/span>. To verify your financial credentials, your surety provider will start by reviewing\u00a0your credit report. Due to the risk associated with this type of bond, most surety providers also require a\u00a0review of\u00a0current personal and business financial statements before offering a quote. As a result, you\u00a0should always keep your credit in good standing and provide your surety agent\u00a0with current personal and business financial documentation. If you are not able to provide this documentation, you might not qualify for the industry’s lowest rate. Your surety provider will<\/span>\u00a0also check\u00a0with the\u00a0<\/span>FMCSA<\/a>\u00a0to evaluate claims history and\u00a0ensure there have been no previous issues.<\/span>\u00a0You should also know that high claims activity in some states has\u00a0resulted in higher rates for even the most qualified applicants.\u00a0As always, new businesses that have never been licensed with the FMCSA\u00a0could receive higher rates due to their lack of industry experience. <\/span><\/p>\n

If a broker meets those requirements, what will their estimated premium be?<\/b><\/h2>\n

Some surety providers are offering more competitive rates\u00a0this\u00a0year than they have in previous years. Qualified\u00a0applicants in low-risk states can expect to pay a rate of just\u00a01.25%\u00a0– or\u00a0$938 annually. Applicants with financial issues\u00a0can expect\u00a0annual premiums that start at\u00a0$1,200. I cannot stress\u00a0enough that your credit report\u00a0and ability to provide personal and business financial statements\u00a0are the most important factors that affect your premium.<\/p>\n

Why do so many freight brokers need to renew their bonds by October 1?<\/b><\/h2>\n

Prior to 2013, these bonds were required in the amount of just $10,000.\u00a0In July 2012, the <\/span>MAP-21<\/span><\/a> (Moving Ahead for Progress in the 21st Century Act) was passed, and it drastically increased the federally required bond amount to $75,000. However, the act gave\u00a0brokers and forwarders until October 1 of the following year to file the increased bond. This bond does not require\u00a0a set expiration date, meaning the government does not require the bond to expire annually on September 30. It just so happens that many\u00a0brokers and forwarders\u00a0renew\u00a0their bonds\u00a0at the beginning of October based on when\u00a0they filed their new\u00a0increased bond in 2013.\u00a0<\/span><\/p>\n

Although there has been a great deal of buzz in the industry about renewals lately, don’t be alarmed if you do not need to renew your bond at this time. For example, because\u00a0these bonds have a standard 1-year term, if you started your business and filed your bond in April 2013, your bond would renew annually in April.<\/p>\n

Is it up to the broker to remember their bond’s expiration\u00a0date and request renewal?<\/b><\/h2>\n

Your surety provider\u00a0should\u00a0send you a reminder notice 60-90 days before\u00a0your bond’s expiration date. This gives you time to get your financial statements\u00a0in order so your agent can\u00a0shop multiple carriers\u00a0to find the best deal for you. In recent months, we’ve been able to save clients thousands of dollars on their renewal premium simply by shopping their account with multiple surety companies.<\/span><\/p>\n

If you’d like to speak with a surety expert like\u00a0Bob to find out if you’re overpaying for your bond, you can call 1 (800) 308-4358 any time from 7 a.m. to 7 p.m.\u00a0CST. Or, you can request your quote instantly online now by clicking this link<\/a>.<\/em><\/p>\n\n\n