5 Reasons Why Bail Bonds Matter
There are seven reasons why bail bonds matter: their cost, their safety, and their convenience. Money bail makes sense, given the widespread poverty of the people held in our criminal justice system. Other types of bonds, such as property bonds, are more expensive but are equally secure. And because a bond premium is included in the total bail price, they make financial sense, too. In any case, you’re not paying the entire bail amount if you don’t have to.
Money bail makes sense.
Many Americans cannot afford to post bail. This is a big problem, especially for poorer people. Even if you were arrested for a low-level crime, it would be nearly impossible to afford the cost of bail. People with a higher income can afford to post bail without a problem, but poor people simply can’t. That’s why money bail makes sense.
The cash bail system is not just expensive – it disenfranchises people who cannot afford it. In addition, studies show that incarcerating people who cannot pay bail damages their health. For example, prison increases tuberculosis, HIV, and hepatitis C rates. It is also linked to a greater risk of mental health problems.
An insurance company secures surety bonds.
A surety bond is a form of financial insurance. The insurance company agrees to pay for losses a business may incur due to its actions. In exchange, the firm pays the surety bond company a small portion of the claim cost. The Dauphin County bail bonds company then expects to be fully reimbursed by the amount of money that the business owes on the bond. Because an insurance company backs surety bonds, they function like a form of credit, but they only cover the cost of the claim for a short time before being fully reimbursed by the bond principal.
A surety bond is a financial security that ensures the principal will comply with laws and regulations. The obligee may claim on the surety bond and reimburse the surety company. This money is paid as a single lump-sum payment to the trustee or custodian. A letter of credit can also be used instead of a surety bond.
An insurance company secures property bonds.
One benefit of a property bond is that an insurance company secures it. If something goes wrong, the insurance company will cover the cost. It is also beneficial to the lender since it helps to increase creditworthiness, enabling them to offer better terms. An insurance company secures property bonds for two main reasons. The first is that the insurance company will pay the bond’s debt, improving your credit rating and helping you get better loan terms.
Bond premiums are a part of bail costs.
When you are arrested, you can expect to pay a premium for your bail bond. The premium is the fee the bail agent charges you to secure your release from custody. In most cases, it is the sole payment to the agent, but in some states, you can also pay for other services provided by the agency, such as drug testing or electronic monitoring. Premiums are nonrefundable. They are produced annually and do not expire until the defendant has been released from jail.
The premium charged by a bail bondsman is a percentage of the bail amount. The fee usually is ten to twenty percent of the total bail amount. This is the norm in most cases, so if your bail amount is $10,000, you will pay a premium of $1,000. Then, there are state-mandated fees that the bondsman may charge, such as filing and administrative costs. You may have to pay additional fees if you’re charged a premium of more than ten percent.
They are an alternative to cash bail.
Cash bail, or paying the total amount in advance, can be risky. You may not receive your entire payment back because you’ll have to wait until the court proceedings are over before accepting it. The vast majority of people don’t have that much cash on hand. Bail Bonds offer an alternative to cash bail.
While some people need pre-trial supervision or services, others simply don’t have the means to pay. However, public defenders and criminal justice advocates stress the need for more accessible bail. For this reason, a default alternative to cash bail should be released on recognizance or an unsecured bond. These alternative bail options serve the same purpose as cash bail: ensuring a defendant’s appearance in court and preventing them from fleeing.