* Common Bond and Insurance Prepass Help | Prepass Help Surety Bond

Type of Bond

A PrePass bond is a surety bond that trucking companies must use if they enroll in the PrePass program and is a financial guarantee that all tolls and other fees will be paid according to the agreement. For many trucking companies, the PrePass program is useful because it helps save time, fuel. and reduce congestion. PrePass bonds cost as low as 1% of the required bond amount (which is set by PrePass and will consider your fleet size). Thinking about using PrePass services? In this PrePass bond guide, you will learn: Definition & Example How It Works Cost & Requirements Where to Find & How to Apply PrePass FAQs PrePass Bond Definition and Example A PrePass bond is a bond required when signing up for PrePass, a toll-paying service that trucking companies can use to pay tolls electronically. The bond is to ensure that trucking companies will pay all of the fees and other costs when using PrePass’s toll bypass service and line of credit. If PrePass finds out that you reneged on this agreement, they can file a claim against the bond to recoup their loss. As with most surety bonds, a surety bond is a three-party agreement. For PrePass bonds, this includes you, PrePass and the surety company. Principal: The party that must obtain the bond (you). Obligee: The party that requires the principal to obtain a bond (PrePass Safety Alliance). Surety: The company that sells the surety, making the guarantee to the PrePass that you will meet the requirements. What is an example of a PrePass Bond? A trucking company successfully signs up for PrePass and begins using their services. However, a couple of months in PrePass discovers that you have not been paying all the toll expenses and other fees. PrePass files a claim against the bond to recoup their financial loss. How Does a PrePass Bond Work? PrePass is a service operated by HELP Inc., a non-profit organization that does good for trucking companies and the general public. First, their services help increase productivity because trucking companies can quickly bypass inspection facilities, leading to lower fuel and operating costs. This also reduces congestion, easing traffic and allowing inspection facilities to dedicate more resources to the real troublemakers. Another perk is a central office — unlike other tolling services where you’d need to contact each tolling autho