North Carolina Oversize/Overweight Permit Bond: A Comprehensive Guide
April 25, 2022
This guide provides information for insurance agents to help their customers obtain a North Carolina Oversize/Overweight Permit bond
At a Glance:
- Average Cost: Between 0.75% to 7% of the bond amount per year based on the applicant’s credit
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: Applicants for an oversize/overweight trucking permit who are deemed likely to damage any highway, bridge, or other state property
- Purpose: To ensure the public will receive compensation for financial harm if the permit holder damages state property
- Who Regulates Trucking Permits in North Carolina: The North Carolina Department of Transportation (NCDOT)
19A NCAC 02D.0600 requires all truck operators transporting an oversize/overweight load across state-owned roads to obtain a permit with the NCDOT. The permit requirement was enacted to ensure that operators do not transport potentially dangerous loads without the NCDOT’s permission. To provide financial security for the enforcement of the permit requirement, operating transporting loads that have the potential to damage state infrastructure must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the North Carolina Oversize/Overweight Permit Bond?
North Carolina requires truck operators that are deemed likely to damage state infrastructure to purchase a surety bond before obtaining an oversize/overweight permit. The bond ensures that the NCDOT will receive compensation for financial harm if the truck operator damages any highway, bridge, or other state property while transporting the load. In short, the bond is a type of insurance that protects the NCDOT if the oversize/overweight permit holder damages state property.
How Can an Insurance Agent Obtain a North Carolina Oversize/Overweight Permit Surety Bond?
BondExchange makes obtaining a North Carolina Oversize/Overweight Permit bond easy. Simply log in to your account and use our keyword search to find the “permit” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
19A NCAC 02D .0602 grants the NCDOT the authority to set the required bond amount on a case by case basis. When determining the bond amount, the NCDOT will examine factors such as the length, width, height, and weight of the load to be transported, the route the operator intends to take, and the specific oversize/overweight permit being applied for. Simply put, the NCDOT will set the bond amount to match the total amount of damages to state infrastructure that they believe the truck operator could potentially cause.
Is a Credit Check Required for the North Carolina Oversize/Overweight Permit Bond?
Surety companies will run a credit check on the permit applicant to determine eligibility and pricing for the North Carolina Oversize/Overweight Permit bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the North Carolina Oversize/Overweight Permit Bond Cost?
The North Carolina Oversize/Overweight Permit bond can cost anywhere between 0.75% to 7% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $25,000 bond requirement.
$25,000 Oversize/Overweight Permit Bond Cost
|Credit Score||Bond Cost (1 year)|
|625 – 719||$250|
|600 – 624||$625|
|575 – 599||$750|
|550 – 574||$1,250|
|500 – 549||$1,750|
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
North Carolina requires truck operators deemed likely to damage state infrastructure to purchase a surety bond as a prerequisite to obtaining an oversize/overweight trucking permit.
But who needs a trucking permit? Well, according to the NCDOT an oversight/overweight trucking permit is generally required for loads that meet any of the following criteria:
- Weight exceeds legal weight as defined by NC law
- Total width of over 8ft. 6 in.
- Overall height is greater than 13ft. 6 in.
- A single-vehicle is longer than 40ft., or a vehicle combination is larger than 60ft. (excluding truck tractor/53-foot semi-trailer combination)
How do Truck Operators Apply for a North Carolina Oversize/Overweight Trucking Permit?
Truck operators in North Carolina must navigate several steps to obtain an oversize/overweight trucking permit. Below are the general guidelines, but applicants should refer to the NCDOT’s trucking permit page for details on the process.
Step 1 – Determine the Permit Type
The NCDOT offers three different oversize/overweight permits. Truck operators must apply for the one that best meets their transportation needs.
- Annual: Grants the operator unlimited movement on North Carolina Highways for a period of one year from the date of issuance provided all loads comply with the length, width, height, and weight regulations outlined in 19A NCAC 02D .0602
- Single Trip: Allows truck operators to transport a load on a specific route during a specific date and time (see 19A NCAC 02D .0602 for load requirements.) These permits are valid for 10 days if the applicant requests a one-way permit and a maximum of 30 days if the applicant requests a round trip permit
- Superload: Required for operators transporting a load that weighs more than $132,000 or has a width that is greater than 15 feet. Superload permits only allow operators to travel on specific routes at designated times and are valid for 10 calendar days. Operators planning a two-way trip must apply for a separate permit for each leg of the trip.
Step 2 – Complete the Application
Truck operators can apply for a single trip or superload permit over the phone by calling the Oversize/Overweight Permit Unit at (888) 574-6683 or by faxing a completed application to the Unit at (919) 662-4320. Operators that would like to set up an account to apply for their permits online can do so by mailing a completed escrow account application, as well as a company check or money order (no minimum requirement) to the following address:
Oversize/Overweight Permit Unit
1561 Mail Service Center
Garner, NC 27529
Operators must pay the following fees when applying for an oversize/overweight trucking permit:
- Annual: $100 per vehicle ($200 for mobile homes)
- Single Trip: State fee of between $12 – $48 based on the type of load and route to be taken
- $100 application fee
- $12 – $48 state fee based on the type of load and route to be taken
- An additional $3 per 1,000 lbs that exceeds 132,000 lbs in gross weight
Step 3 – Purchase a Surety Bond
The NCDOT requires permit applicants that are deemed likely to damage state infrastructure to purchase a surety bond and will inform the truck operator of the required amount if they are in fact required to purchase a bond
Do Trucking Operators Renew Their North Carolina Oversize/Overweight Permits?
Trucking operators in North Carolina must apply for a new oversize/overweight permit for each load that must be transported. However, operators that apply for an annual permit can transport an unlimited amount of oversize/overweight loads in a year as long as the loads comply with the length, width, height, and weight regulations outlined in 19A NCAC 02D .0602. The terms of each permit type are as follows:
- Annual: One year from the date of issuance
- Single Trip: 10 days for one-way trips and a maximum of 30 days for round trips
- Superload: 10 days from the date of issuance
What are the Insurance Requirements for North Carolina Oversize/Overweight Trucking Permits?
North Carolina does not require truck operators to purchase any form of liability insurance as a prerequisite to obtaining an oversize/overweight permit. Operators that are considered to be at high risk of damaging any road, highway, or other state property must purchase and maintain a surety bond in an amount determined by the NCDOT.
How Do North Carolina Truck Operators File Their Oversize/Overweight Permit Bonds?
Truck operators should mail their completed bond forms, including the power of attorney, to the following address:
Oversize/Overweight Permit Unit
1561 Mail Service Center
Garner, NC 27529
The surety bond requires signatures from both the surety company that issues the bond and from the truck operator. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond goes into effect
- Date the bond expires
- Date the bond is signed
What Can North Carolina Truck Operators Do to Avoid Claims Against Their Oversize/Overweight Permit Bonds?
To avoid claims on their Oversize/Overweight Permit bonds, truck operators in North Carolina must ensure that they:
- Do not damage any road, highway, or other state property
- Maintain the dates, times, and routes specified on all permits
What Other Insurance Products Can Agents Offer Truck Operators in North Carolina?
North Carolina does not require truck operators to purchase liability insurance as a prerequisite to obtaining an oversize/overweight permit. However, operators must insure their vehicles before they can be driven. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for North Carolina Trucking Operator Customers?
North Carolina unfortunately does not provide a public database of active oversize/overweight permits. We suggest contacting the Oversize/Overweight Unit directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.