Texas — Automobile Club Bond
Texas automobile-club applicants provide $25,000 in security. The club certificate's August 31 renewal cycle is separate from the continuing surety bond.
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- Recorded state
- Texas
- Bond type
- Automobile Club / Motor Club Bond
- Category
- Vehicles, titles & transportation
What this bond does
The Secretary of State's automobile-club instructions allow a surety bond or certificate of deposit for the Chapter 722 security requirement. Form 2602 is the bond election; it is not motor-vehicle dealer licensing or a single member's traffic bail filing.
- Who needs it
- The automobile club seeking State authority for services promised to members. Match the legal club name on Form 2602 exactly to the application. A club offering accidental death and disability insurance also has the separate insurance-approval step described by the Secretary of State.
- Who it protects
- Form 2602 binds principal and surety to the State of Texas for the State or a party injured by failure to faithfully sell or provide club services. Its condition also covers applicable Act/rule compliance and fines or penalties. The Secretary of State receives the filing; it is not personal auto insurance.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Texas Secretary of State: automobile-club FAQs (opens in a new tab)Checked October 26, 2026
- Texas Secretary of State: Form 2602, automobile-club surety bond (opens in a new tab)Checked October 26, 2026
Have these ready
- Match the club's legal name and mailing address to the certificate application.
- Identify the bond election rather than a separately assigned deposit.
- Confirm the accepted Form 2602, authorized surety, signatures and effective date.
- Track the August 31 certificate renewal separately from continuous security and cancellation notice.
- Verify current SOS delivery instructions; supply any separate insurance-approval evidence requested.
Questions about this bond
Does the club certificate's August 31 expiration end the bond?
Not under the posted continuing-bond clause. Form 2602 has its own maintenance and surety-cancellation conditions. Address certificate renewal and continuing security separately.
Does each renewal add another $25,000 limit?
No. The posted form caps aggregate liability and expressly makes the limit noncumulative from year to year or period to period.
Does the bond approve accidental death and disability insurance?
No. The Secretary of State's FAQ separately requires Texas Department of Insurance policy approval and a copy of the approval letter with the club application when that insurance is offered.