3 Responses for "Has anyone ever heard of a Bond that works as Car Insurance?"

1. justin bieber February 4th, 2010 at 4:51 am 1

   Bonds are NOT insurance…If you decide to self-insure than you are required to get a bond. The way bonds work is that the bond company promises to pay on your behalf the amount of the accident (up to the bond's limit) but you are expected to pay them back. In order to get a bond you have to submit lots of financial information to prove that you have enough assets and that you have assets that can be easily liquidated (ie a lot of cash vs a house that you can't sell fast) Bond companies also look at your credit.For most people you need to just get insurance. Source(s): Commercial Insurance Agent and way too much experience with bonds.

2. Vanessa Hudgens February 4th, 2010 at 4:51 am 2

   Yes it is a Surety Bond. You have to buy one equal to or greater than your state's minimum liability requirement.The way it works is that if you have an accident, the party will sue for your bond. That is your bond issuing company will be responsible for upto the amount of your bond.A lot of small car dealers use this (used typically).

3. Vanessa Hudgens February 4th, 2010 at 4:51 am 3

   He's not crazy, you can buy a bond that will pay out to the injured party in the event you cause an accident. It does not pay to defend you in a court of law should you be sued for damages like car insurance does. You do not get the same protection that car insurance offers. You can check your State Department of Insurance for full information on the amount of the bond you must carry. Source(s): Insurance Agent for over 30 years