When posting bail for a loved one, you may be required to provide collateral in addition to paying the non-refundable 15% premium to secure the bond. While not all bonds require collateral, in certain situations, a bail bondsman may ask for additional security in the form of a car title or a home. But why is this necessary? Let’s explore the main reasons why collateral is sometimes required when obtaining a bail bond.
Why Is Collateral Required?
The need for collateral largely depends on the amount of the bail and the risk level associated with the defendant. Some key factors that increase the likelihood of needing collateral include:
1. High Bail Amounts
When the court sets a high bail, it means the financial risk for the bail bondsman is much greater. Since a bail bond company is guaranteeing the full bail amount to the court, they need additional security to ensure they won’t suffer a major financial loss if the defendant skips court. In these cases, collateral such as cash, a car title or a home deed provides a safeguard for the bail bonds company.
2. Defendant’s Failure to Appear History
If the defendant has a history of missing court dates (Failure to Appear or FTA), this increases the likelihood that they may skip bail again. A long record of FTAs raises red flags for a bondsman, making them more likely to require collateral before agreeing to post bail.
3. Defendant Lives in Another City or State
If the defendant resides in a different town or state, the risk of them fleeing the jurisdiction is much higher. This makes it more difficult to track them down if they fail to appear in court. In such cases, a bail bondsman may ask for valuable collateral to reduce the financial risk.
How Collateral Works
When a bail bond requires collateral, the cosigner must pledge an asset—such as a car title or a home deed (cash is also accepted as collateral)—to secure the bond. This means:
- The bail bondsman places a lien on the property until the case is resolved.
- The collateral remains in the cosigner’s name, but they cannot sell or transfer ownership until the bond is exonerated.
Once the case is closed and the bond is exonerated, the collateral is returned to the cosigner. However, it’s important to understand that the 15% premium paid to the bail bonds company is non-refundable—this is how bondsmen make their money for providing the service.
What Happens if the Defendant Fails to Appear?
If the defendant does not show up to court, the bail bond company may forfeit the bond to the court, leaving them responsible for paying the full bail amount. In this situation, the bondsman has the right to use the collateral to cover their financial loss. This means if a car title or home deed was used as collateral, it could be seized or sold to recover the bail amount.
Final Thoughts
Collateral is not always required when posting bail, but in situations involving high-risk defendants, large bail amounts, or out-of-town residents, a car title or home may be needed to secure the bond. While collateral is returned once the case is over, the 15% premium is not refundable, as it serves as the bondsman’s fee for taking on the financial risk. If you ever find yourself in a situation where bail is needed, understanding why collateral may be required can help you make informed decisions and protect your assets.