What is an International Fuel Tax Agreement (IFTA) Surety Bond?
International Fuel Tax Agreement (IFTA) Surety Bonds are required for commercial motor carriers within the United States and several Canadian provinces. These interstate trucking and transport companies benefit from these surety bonds as they greatly simplify the reporting of fuel taxes. IFTA surety bonds establish a standardized reporting system and reduce the necessary paperwork for both carriers and their applicable jurisdictions. Carriers who have been issued an IFTA surety bond are not required to purchase individual fuel tax permits when traveling through IFTA compliant jurisdictions, significantly simplifying their transit operations.
Which states require International Fuel Tax Agreement (IFTA) Surety Bonds?
Pacific Surety proudly offers International Fuel Tax Agreement (IFTA) Surety Bonds in the following states:
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for International Fuel Tax Agreement (IFTA) Surety Bonds?
Bond amounts for International Fuel Tax Agreement (IFTA) Surety Bonds will vary based on the amount of fuel consumed. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much do International Fuel Tax Agreement (IFTA) Surety Bonds cost?
Pricing for International Fuel Tax Agreement (IFTA) Surety Bonds will vary, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for anyone with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 International Fuel Tax Agreement (IFTA) Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an International Fuel Tax Agreement (IFTA) Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for offers International Fuel Tax Agreement (IFTA) Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase an International Fuel Tax Agreement (IFTA) Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who does an International Fuel Tax Agreement (IFTA) Surety Bond protect?
Interstate trucking and transport companies benefit from these surety bonds, as they greatly simplify the reporting of fuel taxes. IFTA Surety Bonds establish a standardized reporting system and reduce the necessary paperwork for both carriers and their applicable jurisdictions. Carriers who have been issued an IFTA Surety Bond are not required to purchase individual fuel tax permits when traveling through IFTA compliant jurisdictions, significantly simplifying their transit operations. Should there be any error or misrepresentation of fuel tax reporting, a claim can be filed on the bond. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.