Alabama requires every automobile or motor club to post a $25,000 bond (or an equivalent deposit) with the Department of Insurance. Ours is $750 flat — 3% of the bond amount, identical for every club. The application is five minutes.
















License bonds are the simplest thing in surety. Here's the entire process:
Company details and an effective date. That's the application — no financials and no credit check section for this bond.
Fixed-amount license bonds like this issue right after purchase in most cases. At most, 1–2 business days.
Your executed bond, payable to the commissioner, arrives by email ready to file with your motor club license. Wet-ink original mailed on request.
$25,000 bond × 3% = $750, one-time per term. Fixed amount, fixed price, multi-year if you want it.
Alabama licenses automobile and motor clubs through the Department of Insurance under Code of Alabama Title 27, Chapter 39 (Automobile Clubs and Associations). A motor club sells prepaid services — roadside assistance, towing, bail-bond or legal reimbursement, travel benefits — and the state wants a financial backstop standing behind those promises.
The statute lets a club either deposit $25,000 in cash or approved securities with the State Treasurer, or post a $25,000 surety bond payable to the commissioner. The bond is a three-party arrangement: you (the principal), the surety carrier, and the commissioner (the obligee), with members as the protected parties.
The bond cannot be cancelled without 30 days' notice to the commissioner, and it must be approved by the commissioner. If the surety pays a claim, you repay the surety — it is not insurance for you. We track the renewal so your $25,000 filing stays continuous.
These are the actual issuing fields — no credit check section, because this bond doesn't have one.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$750 flat, five-minute application, bond often issued in the same sitting. Free until issued.