Found out my contractor license bond rate was way higher than average

Was looking through my renewal paperwork for my license last night and noticed I'm paying $2,400 a year for my bond. Did some quick google searching and found out the average for my state is around $1,600. Called my insurance broker today and he said I just never asked for a re-quote in the 4 years since I started the company. Anyone else ever catch an insurance or bond cost that seemed way off from normal?

3 comments

3 Comments

amy_murphy851mo ago

The truck insurance thing @blair_dixon mentioned is a good point, but truck insurance and contractor bond rates are kinda different animals lol. Bond rates are usually based on your credit score and how long you've been in business, not like a general "rate hike" situation like with auto insurance. Your broker was probably right that you just needed to ask for a re-quote, which is wild that they don't automatically do that every year. I found out my own bond rate was based on my credit from four years ago, so I got them to pull a fresh report and it dropped me almost $800 a year. It's worth double checking what your credit score was when they set that rate vs. now.

blair_dixon2mo ago

My neighbor had the same thing happen with his truck insurance. Paid double for three years before his wife happened to look at the bill while balancing the checkbook. Now he calls every six months to ask if they've lowered his rate yet. Funny how insurance companies never call you to tell you they're overcharging.

craig.sage2mo ago

Man that's rough. Insurance companies definitely bank on people just not checking. @blair_dixon got it right - they don't exactly volunteer when they're overcharging you. Kinda makes you wonder how many other businesses out there are paying way more than they have to just because nobody asked.