Motor Club Bond Guide
Several states require automobile clubs to file a surety bond as a licensing requirement. Learn how motor club bonds work, where to get one, and how much they cost in this guide.
Bond Overview
- Purpose: To hold motor clubs financially liable for upholding license laws
- Who Needs It: Automobile clubs in several states
- Required Amount: Typically $25,000–$50,000, varies by state
- Premium Rates: Credit-based, typically 1–10% of the total bond amount
What Are Motor Club Bonds?
Motor club bonds, or automobile club bonds, are a type of commercial surety bond that hold motor clubs liable to state licensing regulations and contract terms. If a club breaks the bond terms, the surety provider provides financial compensation for harmed parties.
How Much Do Motor Club Bonds Cost?
Most states require motor club bond coverage of $25,000–$50,000. Pricing varies based on bond amount and the creditworthiness of the applicant. You can expect to pay a rate of 1–10% of the total bond amount.
For example, motor clubs in Alabama can pay as little as $250 for a $25,000 bond. The $50,000 North Carolina motor club bond is available for instant purchase for a flat rate of $500.
How Do Motor Club Bonds Work?
Motor club bonds bind three parties in a legal contract:
- Principal: The club purchasing the bond and upholding the obligations
- Obligee: The government department requiring the bond
- Surety: The company issuing and backing the bond
Who Needs a Motor Club Bond?
Motor clubs need to be licensed to operate in all states. However, only a few states require bonding for motor clubs — Alabama, New Mexico, North Carolina and South Carolina. Select your state below to learn more.
If you need a motor club bond in New Mexico, please call 1 (800) 308-4358 for assistance.
How to Get a Motor Club Bond
You can apply for or purchase the motor club bond you need online with SuretyBonds.com. Select your bond, enter your information, and checkout or receive a free quote within one business day. Once you receive the official bond documentation, file it with the obligee to confirm your bonded status.
How Do I Renew My Motor Club Bond?
Motor club bonds require annual renewal. If you purchased your bond from SuretyBonds.com, we’ll send you a renewal invoice and instructions starting 90 days before your bond expires. Simply pay your invoice and file any documentation as needed to maintain an active bond.
Can I Get a Motor Club Bond With Bad Credit?
Typically, yes. We work with surety markets nationwide to provide bonds for applicants with varying financial situations. We’ll work to get you approved at the best rate — no matter your credit score. Visit our Bad Credit Bonding Program page to learn more.
