12 Jul The Price of Collateral
Many bail bonds will require collateral in order to be authenticated. Collateral is typically property, vehicles, and valuables that a person pledges to the bail bond company. The bail bonds company uses collateral as insurance.
You see, the big thing about bail bonds over cash bonds is that a bail bond costs 90% less than cash bonds. The defendant will need to show up for court in both cases, but for bail bonds, the collateral acts as a big incentive for the defendant to honor this agreement. If the defendant fails at showing up for court, the bail bonds company can, and will, claim the collateral from the original owner. The original owner loses whatever property, vehicles, and/ or valuables they pledged. Knowing they have loved ones putting so much at stake for them is the incentive for the defendant to go to court. Otherwise, the loss of collateral is at the fault of the defendant.