Bond amount vs. premium
Every bond has two numbers, and mixing them up is the most common source of sticker shock.
- The bond amount (also called the penal sum) is the most the surety would pay on claims. The agency, court or project owner sets it. A Georgia used car dealer bond, for example, is $50,000.
- The premium is what you actually pay to get the bond. It is usually a small percentage of the bond amount.
So a $50,000 dealer bond does not cost $50,000. It costs a premium, set mostly by your credit.
What common Georgia bonds look like
| Bond | Bond amount | How the premium works |
|---|---|---|
| Performance & payment | 100% of the contractEach bond, on covered public work | Flat 3% of the contract on our standard program, one premium for both bonds |
| Bid bond | Usually 5% of the bidAt least 20% on federal jobs | Often little or no charge; the premium is on the final bonds if you win |
| Used car dealer | $50,000Since July 1, 2026 | A percentage of the bond amount, based mostly on credit |
| Certificate of title | 2x vehicle value$5,000 minimum | One-time premium for the 4-year term; smaller bonds often around $100 |
| Public adjuster | $5,000Continuous | Small annual premium based on credit |
| Private detective & security | $25,000Or a $1M liability policy | Annual premium based on credit |
| Estate administrator | Estate valueWith a commercial surety | Annual premium based on the amount and the administrator's credit |
| Appeal (supersedeas) | Set by the courtUsually judgment plus costs and interest | Percentage of the amount, often with collateral |
What moves your price
1. Your personal credit
For most license, permit and smaller contract bonds, personal credit is the biggest factor. The surety is asking one question: if it pays a claim, will you pay it back? Strong credit gets the best rates. Weaker credit can still be bonded, usually at a higher rate or with collateral.
2. The type of bond
Some bonds rarely see claims, so they are cheap and often approved instantly. Others, like appeal bonds, guarantee payment of a known debt, so sureties price them higher and often ask for collateral.
3. Your financials, on bigger bonds
For larger contract bonds, the surety looks past credit to your company's financial statements, work in progress and experience. Strong financials can bring rates down on big programs.
4. Your history
Years in business, a clean license record and no past bond claims all help.
Will checking the price hurt my credit?
Asking us about a bond does not pull your credit. When underwriting does check credit for an application, many sureties use a soft check that does not affect your score. Ask if you are unsure.
Ways to lower your bond cost
- Clean up errors on your credit report before you apply for a large bond.
- On contract bonds, keep CPA-prepared financial statements current. They open up better rates and bigger limits.
- For probate bonds, ask the court whether restricted accounts can reduce the required bond amount.
- Renew on time. A lapse can mean starting underwriting over.
Want a real number? Use the performance bond calculator, search every Georgia bond online, or start a chat below.
Bond amounts: O.C.G.A. §§ 13-10-40, 13-10-60, 36-91-50, 36-91-70, 36-91-90, 43-47-8, 33-23-6, 43-38-6, 53-6-51, 5-6-46; FAR 28.101-2; Georgia Department of Revenue. Premiums are set by the surety after underwriting. This article is general information, not legal advice.