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Texas requires an automobile club to post $25,000 of security for its certificate of authority — a surety bond is one of the accepted forms, filed with the Secretary of State. Ours is $250 flat — the price you see is the checkout price. The bond issues the moment you pay — no credit check.
















License-style bonds are the simplest thing in surety. Here's the entire process:
Business details and an effective date. That is the application. No credit check.
Fixed-amount bonds like this are among the thousands of bond types that issue right after purchase.
Your executed bond and power of attorney arrive by email, ready to file with your certificate-of-authority application or renewal. Wet-ink original mailed on request.
Texas regulates automobile clubs — companies that sell roadside assistance, towing reimbursement, bail bond, and similar member services — through the Secretary of State under Transportation Code Chapter 722. Before it can sell, a club must hold a certificate of authority and post $25,000 of security.
The statute lets a club satisfy that requirement by depositing $25,000 in approved securities, $25,000 in cash, or a $25,000 surety bond. The bond is conditioned on the club's faithful performance in providing the services it sells, and on payment of any fines or penalties for failing to comply with Chapter 722.
It's a three-party arrangement: the club (the principal), the surety, and the State of Texas, with members as the protected parties. The aggregate liability of the surety can't exceed the $25,000 face amount, and the security must stay in place as long as the club has any obligation in Texas. If the surety pays a claim, the club repays the surety.
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.
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.
File with the Secretary of State. Your executed bond and power of attorney arrive by email, ready to file with your certificate-of-authority application or renewal. Wet-ink original mailed on request.
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.
These are the actual issuing fields. No credit check.
Start the application →Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
$250 flat, no credit check, bond often issued in the same sitting. Free until issued.