Alabama automobile club bonds.
$250 flat.
Alabama requires every automobile or motor club to post a $25,000 bond (or an equivalent deposit) with the Department of Insurance. Ours is $250 flat — set by our carrier’s rate book for this bond, identical for every club. The bond issues the moment you pay — no credit check.
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How much does an Alabama automobile club bond cost?
$250 at the $25,000 amount, the same for every applicant.
Three steps. One sitting.
License bonds are the simplest thing in surety. Here's the entire process:
Apply online
Company details and an effective date. That is the application. No credit check.
Pay & e-sign
Fixed-amount license bonds like this issue right after purchase in most cases.
File with the Department of Insurance
Your executed bond, payable to the commissioner, arrives by email ready to file with your motor club license. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
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.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Insurance. Your executed bond, payable to the commissioner, arrives by email ready to file with your motor club license. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $250 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check.
Start the application →Common questions.
Other Alabama bonds.
The same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
License your motor club today.
$250 flat, no credit check, bond often issued in the same sitting. Free until issued.