Want to learn more about how to get a Texas automobile club license? Keep reading
What’s an automobile club?
Texas defines an automobile club as a business that offers car and travel related assistance to members. Services falling under the definition include those related to:
- Community traffic safety
- Travel and touring
- Theft prevention or rewards
- Maps
- Towing
- Emergency roadside assistance
- Bail bonds and traffic offense legal fee reimbursement
- The purchase of accidental injury and death benefits insurance coverage
If an automobile club offers insurance as defined above, the policy offered has to be approved by the Texas Department of Insurance.
Automobile clubs are issued Certificates of Authority by the Texas Secretary of State. The application asks clubs to specify if they are applying for initial licensure or renewal. Here’s some of the other information the Secretary’s office needs:
- Club business name, contact person, phone number and email
- Principal business and/or office address
- Business type
- Names and contact information for business owners or management
- $150 license fee
- Certificate of existence for corporation, or operating agreement for other business types
- $25,000 surety bond
- Certified copies of service contracts
Automobile club licenses expire annually on August 31, and renewal applications must be accompanied by a $150 fee.
Any agents employed by the automobile club need to be registered and pay a $10 filing fee—see the Texas Administrative Code for exemptions and registration rules. Their registrations expire one year from the date they are issued. If an agent leaves their position, the club needs to file a termination notice.
What does this bond do?
By purchasing and signing this�$25,000 surety bond, automobile club licensees agree to honor the terms of the bond. This bond requires principals (bondholders) to adhere to the Automobile Club Services Act in the Texas Transportation Code, and any other applicable state and federal laws.
Should the principal violate the bond’s terms and their actions cause financial damages for a customer, the customer can file a claim against the surety bond. The surety company pays out proven claims up to the bond’s full amount�in this case, $25,000. But the principal must reimburse the surety for paid claims, meaning liability lies with the principal.