License & Permit
Motor Club Bond
A license bond some states require of companies that sell roadside assistance and other motor club memberships.
- Required by
- State insurance departments
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state that the motor club will follow the state's motor club law and perform its member contracts in good faith. In North Carolina it runs to the state. Members who pay for services they do not receive can make a claim through the state.
Who needs it
- Motor clubs and roadside assistance companies
- Auto clubs selling memberships
- Companies selling towing or travel service plans to drivers
What the underwriter looks at
- Owner credit
- Financial statements
- Number of members
- Years in business
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
It varies by state. North Carolina requires $50,000.
Who regulates motor clubs?
Usually the state insurance department, because memberships are prepaid service contracts.
Can I post a deposit instead?
Some states, such as Nevada, allow a deposit of securities in place of a bond.