Truck drivers in Texas may be required to post a Superheavy Surety Bond. The bonds are also called Oversize Permit Bonds. What is a Superheavy Surety Bond? The bond protects the state highways for damage that may be incurred because of the use of heavy equipment. The vehicle must still have a permit under Chapter 623 of the Transportation Code. The Principal on the bond is the owner of the new or used heavy equipment or heavy truck. The Obligee on these bonds is The Department of Transportation and the Surety is the bond company who is making the guarantee on the bond.
What is the Amount of the Texas Superheavy Bond?
The required amount for all Texas Superheavy Bonds running to the Texas Department of Transportation is $10,000. Other cities and counties may require additional Oversized bonds of different amounts.
What is the Cost of the Texas Superheavy Bond?
These surety bonds vary in cost depending on the surety bond company used. MG Surety Bonds can issue these bonds for as low as $50 a year. These Superheavy bonds are annual bonds and it is important to understand that these Superheavy Bonds need to be renewed yearly. The Obligee will not accept a continuation certificate and the bond must be renewed. The common renewal date for these bonds is August 31. The cost of the Superheavy Bond will be prorated depending on when it is purchased.
What Underwriting Information is Required?
Unlike other type of Texas contractors insurance and Texas surety bonds, These Superheavy Bonds are written freely by surety bond companies. That means no underwriting is required. The Principal only needs to provide the company or owner’s name and address so that the bond can be completed. These bonds are instant issue which means there is no waiting. These bonds can be approved in minutes. You can also get these Oversize Bonds by clicking on the button below with no underwriting required.
What if I Have Bad Credit?
Fortunately, that will have no impact on obtaining a Texas Superheavy Bond. Credit underwriting is not a requirement to obtain these surety bonds.
Indemnity Required
Like all surety bonds, Texas Superheavy Bonds are written on the Principle of Indemnity. That means that if a valid claim is made against the surety bond, the bond company will seek reimbursement from the Principal and Indemnitors. This is always a distinction between surety bonds and insurance. If a claim is made, venue of a suite for recovery will take place in Travis County.
Other Oversized Permit Bonds May Be Required
It is important to keep in mind that many counties and municipalities in Texas also have their own Superheavy and Oversized Permit Bond Requirements. For example, Brazoria County Texas has a $15,000, $50,000 and $100,000 requirement for Oversized Bonds. Colorado County Texas also have a $100,000 Superheavy Permit Bond Requirement. These surety bonds are separate and may be in addition to the bonds running to the state. They are also priced differently. The Texas DMV has a nice chart showing additional requirements by county here. Contact MG Surety Bonds if you are not sure what Oversized Permit Bond you need.
Other Considerations for Superheavy Surety Bonds
The surety bond must be filed with the Texas DMV before a permit can be issued. It must also be signed by an authorized person of the company applying for the bond. The Principal’s hometown address including zip code must also be shown on the Oversized Bond. Bonds should be sent to the Texas DMV at the following address:
Mail or Overnight bond to:
TxDMV Attn: MCD-Permits
4000 Jackson Avenue
Austin, TX 78731
Fax bond to: (512) 465-4251
You can find a copy of the bond form below or at this link.
Cancellation
If the Superheavy Bond is cancelled for any reason before the expiration date, fourteen days’ notice must be given.
Additional information on these bonds can be found on the Texas DMV website here. Texas Superheavy Bonds are easy to get and affordable for all companies. Make sure you are complying local laws and regulations by getting the bond you need. Contact MG Surety Bonds for any questions.