Texas Automobile Club ($25,000) Bond Requirements At A Glance
The Texas Automobile Club ($25,000) Bond is a surety bond required for automobile club licensees operating in Texas. This bond guarantees that the automobile club will comply with the Texas Transportation Code and all applicable state and federal laws governing automobile clubs. If the business fails to meet its legal obligations, the bond provides financial protection to the state and affected consumers—up to $25,000—for fines, penalties, or damages resulting from noncompliance. It does not function as insurance for the business itself; rather, it protects the public and ensures lawful operation. Securing this bond is a critical step in obtaining or maintaining an automobile club license in Texas and demonstrates financial responsibility, regulatory compliance, and commitment to consumer protection.
By Gary Swiftbonds, nationally recognized expert in surety bonds, bid bonds, and performance bonds.
Updated February 2026.
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What is the Texas Automobile Club Bond?
The Texas Automobile Club Surety Bond is a contract between the bond principal and TAC. The bond states that if the business fails to abide by the requirements of law, then they must pay any fines or penalties levied against them for failure to comply with provisions in accordance with legal statute.
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The Texas Automobile Club Bond is the perfect solution. It’s an investment that provides you with peace of mind and protection against financial hardship in the event of an accident, injury or death.
With this bond, you’ll be able to receive up to $25,000 in coverage if something happens to you or a loved one while driving on public roads in Texas. This bond also offers additional benefits such as roadside assistance and travel discounts! Get yours today!
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What does this bond do?
People who buy this $25,000 surety bond agree to honor the terms of the bond. This means they will follow all applicable state and federal laws that are found in the Texas Transportation Code, as well as any other law pertaining specifically to automobile club licensees
Is Auto Club the same as AAA?
Have you heard of Auto Club? It’s an affiliate of the American Automobile Association (AAA), also known as AAA. Within Texas, it is called the Automobile Club of Texas.
Does Texas have AAA?
AAA Texas provides services to its members that include roadside assistance, auto, home, and life insurance products, international and domestic travel planning reservations, pedestrian traffic safety programs, automotive pricing, and financial service including consumer loans and deposit accounts.
What does AAA basic cover?
AAA Basic provides you with peace of mind when traveling in your car or someone else’s. With our 24/7 roadside assistance and discounts that come along with being a basic member, we offer the best price for safety and security while on the road.
What’s the difference between AAA Plus and AAA Premier?
Well, as a member with an unlimited number of tows at any location per year for 100 miles each time you’re towed, or up to 200 driving miles on one service call if that is your chosen benefit level. Find a Public Adjuster Bond ($10,000.00)-TX.
How many tows do I get with AAA Premier?
With your AAA Premier Membership, you can enjoy up to six (6) service calls per year. The first one is free for 200 miles, and the remaining five are 100 miles each.
Is AAA worth the cost?
AAA has been with us for years. Yes, roadside service is totally worth the cost — and key services like locked-car keys are too! AAA travel benefits have also come in handy; we were able to get some pretty sweet deals on a cruise.
How do I get my AAA?
It’s easy to find your AAA number. If you cannot locate it that way, use the national membership hotline toll-free number for assistance, or try contacting a local office of AAA, and they should be able to help you out with finding your member information!
How do I check the status of my AAA claim?
To check the status of your AAA claim, please call a toll-free hotline. Their Claims Contact Center is available 24/7 for you to reach out during emergencies and accidents. See an Austin, TX-Sidewalk Contractor ($10,000) Bond.
How soon can you use Triple A after signing up?
A Basic Membership with AAA will allow you to access the service immediately after joining. Plus and Premier services can be used 7 days later, but only if payment is received first.
Can I join AA and use it immediately?
If you want to join the AA today, just call the hotline. We’ll come and provide instant cover for anyone broken down in Texas who’s not already with us.
How much is an AAA membership in Texas?
The AAA membership in Texas is $55 for a one-year membership at the Classic level of benefits. All applications and renewals are subject to approval, but we’ll do our best to make sure that you’re accepted into this amazing club!
Does AAA Texas work in other states?
As an AAA member, you are eligible to receive service anywhere in the United States and Canada. Read a Austin, TX-Right-of-Way ($10,000) Bond.
Can I use AAA without my Membership card?
You may be asked to provide your AAA membership card to take advantage of the various member benefits. If you don’t own one, download and install the free app from iTunes or Google Play Store for quick access on-the-go!
How many times a year can you use AAA?
AAA members can call for assistance as many times as they need to. As long as the membership is active, each member and their family are allowed four (4) free roadside calls per year. After that, there’s an optional service charge available if you want someone from AAA to come out and help with your vehicle or other needs!
Does AAA have 24-hour service?
AAA has been providing 24-hour towing services since before the turn of the century. When you need help, no matter if it’s as a driver or passenger in any vehicle and anywhere on U.S./Canadian soil, your local AAA promises not to leave until they’ve found an answer for you—even when that means going out at 2 am!
Will AAA help my friends and me when we’re driving?
Yes! We’ll cover you for service in any vehicle. You don’t need to keep your car info on file or worry about coverage while traveling with others. Get a Kerrville, TX-Street or Highway Permit ($5,000) Bond.
Does AAA Texas offer gap insurance?
AAA Texas offers optional gap insurance for drivers who are concerned about the difference between their car’s actual value and what they owe on it. In addition to helping you finish paying off your loan, AAA vehicle loan (or lease) protection will cover any discrepancies up to $50,000 if a driver has an accident or steals their own property in certain circumstances.
How much should Gap cost?
Some are required by state law to offer it, but dealers typically charge substantially more than the major insurance companies. On average, a dealership will charge you $500-700 for a gap policy; however, some can be as high as $1500.
Should I buy gap insurance through the dealer or from my insurer?
To avoid paying interest, it is recommended to buy gap coverage through your auto insurer. You generally need gap insurance for just a few years until the cost of borrowing money is less than what you owe on your vehicle’s loan balance.
Frequently Asked Questions
What is the purpose of the Texas Automobile Club ($25,000) Bond?
The bond guarantees that a licensed automobile club will comply with all applicable laws and regulations under the Texas Transportation Code. It protects the state and consumers from financial harm if the club violates legal requirements.
Who needs to obtain the Texas Automobile Club Bond?
Any business applying for or maintaining an automobile club license in Texas must secure and file a $25,000 surety bond as part of the licensing process.
Does the bond provide insurance coverage for accidents or roadside services?
No. The bond is not an insurance policy for accidents or roadside events. It is a financial guarantee that the automobile club will operate lawfully and fulfill its legal obligations.
How much coverage does the bond provide?
The bond provides up to $25,000 in financial protection for claims related to violations of applicable laws governing automobile clubs in Texas.
What happens if a claim is filed against the bond?
If a valid claim is paid, the surety may seek reimbursement from the automobile club. The bond ultimately holds the licensee financially responsible for compliance failures.
Strengthening Consumer Trust And Regulatory Compliance In Texas
The Texas Automobile Club ($25,000) Bond plays a vital role in maintaining accountability within the automobile club industry. By requiring this bond, the state ensures that licensed clubs operate in accordance with established laws and ethical standards. The bond protects consumers, reinforces financial responsibility, and promotes trust in roadside assistance and related services offered across Texas. For automobile club operators, obtaining this bond is more than a licensing requirement—it is a demonstration of commitment to compliance, professionalism, and public protection. Securing the bond promptly allows businesses to move forward confidently while meeting all regulatory expectations.