Bail Bond Premium – A Common Misconception

The bail bond premium, that is the fee paid to the bail bond agent, is one of the most misunderstood parts of the bail bond contract. Many people are of the opinion that the fee that they pay is refunded when the defendant appears in court. This is not correct and I’ll explain.

When a person is arrested and a bond amount is set, the family of the defendant has several options. They may post the entire amount of the bail in cash or they my enlist the services of a bail bond agent. If they elect to post the bond in cash, they must deposit the case with the court and that amount will be refunded when the bond is released. If the family does not have the cash, they may enlist the services of a bail bond agent. They will pay a percentage of the bond as a premium for the service of not having to post the entire amount in cash. That premium is earned by the insurance company backing the bond and is not refundable. Think of it as buying car insurance. You pay a premium, but you don’t get any money back if you don’t have an accident.

Another misconception is in the premium rate charged for the bond. In Colorado, the maximum rate that may be charged is set by the State Legislature and is capped at 15%. Most bonds under $5000 are written at 15% while bonds above $5000 are usually 10%. However, the circumstances of each bond dictate where in that range the agent will charge. Risk factors such as residence, employment history, prior failures to appear and the collateral offered all contribute to the decision. Beware of agents that quote rates that vary significantly, either higher or lower from the norm.

Good service is seldom cheap and cheap service is seldom good. There are inherent risks in writing a bail bond and staying on the bond throughout the court process. Good agents provide good service throughout the court process and expect to be compensated accordingly.