Alabama Motor Club Bond Guide
If you’re applying for a motor club license in Alabama, you’ll likely need this $25,000 surety bond.
Bond Overview
- Purpose: To ensure motor clubs operate legally
- Who Needs It: Motor clubs in Alabama
- Regulating Body: The Alabama Department of Insurance
- Required Coverage: $25,000
- Premium Rate: $250–$2,500, credit based
Learn all about the bond requirements and process in this guide.
What Is an Alabama Motor Club Bond?
An Alabama motor club bond protects the membership dues of club members or subscribers in the event that a club closes unexpectedly.
How Much Do Motor Club Bonds Cost?
Alabama motor club bonds cost a small percentage of the $25,000 coverage amount, typically $250–$2,500.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Motor Club Bond?
The Alabama Department of Insurance requires this bond as part of the licensing process for motor clubs in the state.
A motor club promises to assist members in the ownership, operation, use, or maintenance of their motor vehicle. This does not include clubs that conduct motor vehicle races, exhibitions or contests.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get an Alabama motor club bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll email you the bond shortly after purchase. Be sure to file it with the Department of Insurance as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Alabama Motor Club Bond Work?
A motor club bond creates a legal contract between these three parties:
- Principal: You, the motor club owner(s) filing the bond
- Obligee: The Alabama Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Alabama State Code Title 27 Chapter 39.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your motor club bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
