AL automobile club bonds.
$750. Five minutes.

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.

Required to license an auto / motor club with the Department of Insurance
Fixed amount, fixed price — $25,000 bond, $750, no quote process
Cancellation needs 30 days’ notice to the commissioner — we keep it continuous
A-ratedA.M. Best carriersFastoften same purchaseNo creditcheck to issue
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps. One sitting.

License bonds are the simplest thing in surety. Here's the entire process:

NOW · 5 MINUTES

Apply online

Company details and an effective date. That's the application — no financials and no credit check section for this bond.

MINUTES, USUALLY

Pay & e-sign

Fixed-amount license bonds like this issue right after purchase in most cases. At most, 1–2 business days.

SAME DAY

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.

The whole pricing page.

$25,000 bond × 3% = $750, one-time per term. Fixed amount, fixed price, multi-year if you want it.

1-year term
$750
2-year term
$1,500
3-year term
$2,250
About this bond

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.

Code of Alabama Title 27, Chapter 39Code of Alabama Title 27, Chapter 39 (Automobile Clubs and Associations) requires an automobile or motor club to deposit $25,000 in cash or approved securities with the State Treasurer, or in lieu post a $25,000 surety bond payable to and approved by the Commissioner of Insurance. The bond may not be cancelled without 30 days' notice to the commissioner.

You need this bond if you're

Licensing an auto / motor club in Alabama — the bond is filed with the Department of Insurance
Selling prepaid roadside or travel benefits to Alabama members
Renewing your motor club license and your current bond is expiring
A national auto club entering Alabama alongside your licenses in other states

Five minutes. The whole thing.

These are the actual issuing fields — no credit check section, because this bond doesn't have one.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the Alabama automobile club bond? +
The premium is $750 — a flat 3% of the $25,000 bond amount, the same for every club. The $25,000 is set by Title 27, Chapter 39, so there is no quote process.
Do I pay the $25,000? +
No. You pay $750. The $25,000 is the surety's maximum liability to the commissioner and members; it's not a deposit, and nobody holds your money. (The statute does let a club deposit $25,000 in cash instead — the bond avoids tying up that capital.)
Can I deposit cash instead of a bond? +
Yes — Title 27, Chapter 39 lets a club deposit $25,000 in cash or approved securities with the State Treasurer in lieu of the bond. Most clubs post the bond instead, paying the $750 premium rather than locking up $25,000.
Is there a credit check? +
Not on this bond — the application has no credit section. A fixed-amount license bond at this size doesn't need one.
When does it renew? +
The bond must stay active for your motor club license, and it cannot be cancelled without 30 days' notice to the commissioner. You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out.
Related bonds

Other New York bonds.

License your motor club today.

$750 flat, five-minute application, bond often issued in the same sitting. Free until issued.

Your premium @ 3%$750
Apply now →