Automobile Club Bond

Texas Automobile Club Bond

SOS Form 2602 — $25,000 automobile club surety

Texas automobile clubs file a $25,000 surety bond on Secretary of State Form 2602 with an application for a certificate of authority under the Automobile Club Services Act. This is not the TxDMV $50,000 dealer GDN bond.

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Overview

What is this bond?

The Texas automobile club bond is the $25,000 surety on SOS Form 2602 that accompanies an application for a certificate of authority to operate as an automobile club under Tex. Transp. Code Chapter 722.

Surety Obligation Overview

What Does This Bond Guarantee?

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Texas Secretary of State
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

A person engaging in business as an automobile club in Texas who is not already posting other accepted security — not motor vehicle dealers filing a GDN bond.

Who Is Required to File
  • Automobile clubs applying for or renewing a Texas SOS certificate of authority (Form 2601)
  • Clubs electing a surety bond instead of a certificate of deposit to meet the $25,000 security requirement under § 722.004
Requirements

What You Need to Apply

Purchase a $25,000 surety bond on Form 2602 from an authorized surety, then file it with the Secretary of State Registrations Unit with Form 2601 and the annual fee.

Required Documentation
  1. Completed SOS Form 2601 application
  2. $25,000 surety bond on Form 2602
  3. $150 certificate fee
  4. TDI approval letter if the club offers accidental death and disability insurance to members
Filing

How this filing works

  1. 01

    Confirm you are an automobile club

    Match Chapter 722 — towing, travel, and membership services — not a TxDMV dealer GDN and not a freight broker.

  2. 02

    Apply for the bond

    Use Apply on this page for the Texas Automobile Club Propeller class ($25,000, Form 2602).

  3. 03

    File with the Secretary of State

    Submit the executed Form 2602 bond with Form 2601 to the SOS Registrations Unit. Certificates expire each August 31.

FAQ

Frequently Asked Questions

How much is the Texas automobile club bond?

Tex. Transp. Code § 722.004 requires $25,000 in security. Form 2602 is the surety-bond option.

Is this the same as the dealer bond?

No. Independent and wholesale dealers file a $50,000 TxDMV GDN bond under § 503.033. Automobile clubs file Form 2602 with the Secretary of State.

Who is the obligee?

Texas Secretary of State. File with the Registrations Unit in Austin.

Authority Resources

Texas Secretary of State — Registrations Unit

sos.state.tx.us

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