How rates are set
Bail premiums are insurance premiums in most commercial bail states, which means they are regulated. The most common approach is that the surety files rates with the state insurance department, and agents must charge the filed rate. Some states set the rate by statute; others set a maximum. Charging more — or less — than allowed can be a violation.
Common models
- Filed rates: surety files with the regulator; agents charge the filed rate
- Statutory rate: the law sets a percentage (often around 10%)
- Statutory cap: a maximum percentage, with room below it
- Minimum premium rules for small bonds
- Rules on discounts, rebates and inducements
California
In California, bail rates are filed by sureties with the Department of Insurance. Agents are expected to charge the rate filed by the surety they write for. Discounted rates may be available only where a filed rate allows them (for example, for defendants with private counsel, union membership or military service, depending on the filing). Confirm with your surety what rates it has on file.
What counts as a fee
- Many states restrict or prohibit additional fees beyond the premium
- Recovery or travel costs may be chargeable only if allowed by statute and the contract
- Financing charges on payment plans may be regulated as consumer credit
- Itemize anything charged and keep the legal basis in your file
Practical checks
- Keep a copy of the current rate filing for each surety
- Train staff to quote only approved rates
- Disclose the premium in writing before signing
- Review rate changes when your surety notifies you
General information only, not legal advice. Laws change — confirm current requirements with your state regulator, your surety and an attorney.