What is a Michigan Scrap Tire Bond?

Michigan Scrap Tire BondsScrap tires are discarded tires by their owner or manufacturer. To be a scrap tire hauler or a scrap tire collection site/storage, the State of Michigan requires the provision of a surety bond as a registration condition to lawfully conduct business in the State.

Scrap Tire Bonds, which include Scrap Tire Hauler Bonds and Scrap Tire Collection Site Bonds, ensure compliance with Michigan’s Scrap Tire Laws, Part 169, as amended.

The Scrap Tire Hauler Bond provides financial assurance for the removal and/or cleanup of scrap tires and deposited scrap tires at an illegal location. The bond brings scrap tires into compliance with Part 169, where they are to be properly transported to a licensed scrap/waste tire facility.

The Scrap Tire Collection Site Bond ensures a financial guarantee for the removal and/or cleanup of scrap tires – for costs of cleanup at the collection site, fire suppression, and those associated with responding to a fire or an emergency at a collection site.

Note: A motor carrier license is also required by the Michigan Department of State Police for the intrastate for-hire trucking industry hauling of scrap tires.


What are the bond conditions?

  • The bonds must be written by a Surety authorized to conduct business in the State of Michigan.
  • The Principal ensures that scrap tire collectors adhere to the terms set in Part 169, Scrap Tires, of the Natural Resources and Environmental Protection Act.
  • If the Principal follows all laws and provisions as required, the obligation will be null and void; otherwise, it will remain in full force and effect.
  • The bonds are continuous until canceled. Michigan requires 120 days’ written notice from the Surety before the cancellation date.
  • The Surety’s aggregate liability will not exceed the determined full penal sum of the bond.


What is the bond amount?

For scrap tire haulers: $10,000

For scrap tire collection sites:

Scrap Tire Collection Site Bond (Site smaller than .25 acres) – $25,000

Scrap Tire Collection Site Bond (Site .25-.5 acres) – $50,000

Scrap Tire Collection Site Bond (Site .5-.75 acres) – $75,000

Scrap Tire Collection Site Bond (Site larger than .75 acres) – $100,000

Indoor Scrap Tire Collection Site Bond – $2 per square foot

Your bond premium will depend on your credit score. Those who have an excellent credit score will be able to pay as little as 1% of the bond amount!


How do I obtain Scrap Tire Bonds?

You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.

Here’s how to get bonded:

You have to send an application to us. If you are ready to do that now, you may apply HERE!

After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:

  • Your credit score
  • Copies of the bond forms (depends on your bond type):

BOND FORM scrap tire hauler

BOND FORM scrap tire collection site

Both forms can be obtained from the Michigan Department of Environmental Quality, Office of Waste Management and Radiological Protection

For applicants, please know your Waste Date System or Scrap Tire Collection Site Registration number.

An expert underwriter will carefully evaluate all these to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.

Your surety bond will be issued and sent to you!

Call us now!

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