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Frequently Asked Questions for Automobile Clubs

The answers to our Frequently Asked Questions are provided for informational purposes and are not intended to provide legal advice or to substitute for the advice of an attorney. If you have specific legal questions, consult your attorney.

Form Series 2600

In Texas, automobile clubs are governed by Chapter 722 of the Transportation Code and the secretary of state’s administrative rules found in 1 Texas Administrative Code Chapter 75, as well as any other applicable state or federal law.

  1. What is an automobile club?
  2. Are automobile clubs required to register with the secretary of state?
  3. What is the cost of obtaining an automobile club certificate of authority from the secretary of state?
  4. What types of security are acceptable?
  5. How much does it cost to obtain a bond?
  6. How do I get a certificate of deposit in favor of the secretary of state?
  7. Are there any special requirements for an automobile club that provides an accidental death and disability insurance policy to its members?
  1. What is an automobile club?

    Section 722.002, Transportation Code, defines “automobile club” as:

    a person who, for consideration, promises the membership assistance in matters relating to travel, and to the operation, use, or maintenance of a motor vehicle, by supplying services such as services related to:
    1. community traffic safety;
    2. travel and touring;
    3. theft prevention or rewards;
    4. maps;
    5. towing;
    6. emergency road assistance;
    7. bail bonds and legal fee reimbursement in the defense of traffic offenses; and
    8. purchase of accidental injury and death benefits insurance coverage from an authorized insurance company.
  2. Are automobile clubs required to register with the secretary of state?

    Yes. Section 722.003 of the Transportation Code provides that “[a] person may not engage in business as an automobile club unless the person . . . obtains an automobile club certificate of authority from the secretary of state.” See Form 2601. Certificates of authority expire annually on August 31 and must be renewed.

  3. What is the cost of obtaining an automobile club certificate of authority from the secretary of state?

    The fee for an original certificate of authority or renewal is $150. In addition, an automobile club must accompany an application for certificate of authority with proof of $25,000 in security.

  4. What types of security are acceptable?

    An automobile club may satisfy the security requirement by obtaining a surety bond or a certificate of deposit in favor of the secretary of state.See Forms 2602, 2603.

  5. How much does it cost to obtain a bond?

    The surety bonding company determines the cost of a surety bond. Contact the surety company to obtain the cost of the bond.

  6. How do I get a certificate of deposit in favor of the secretary of state?

    Obtain a certificate of deposit from a bank and assign it to the secretary of state. See Form 2603.

  7. Are there any special requirements for an automobile club that provides an accidental death and disability insurance policy to its members?

    Yes. If an automobile club provides an accidental death and disability insurance policy to its members, the policy must be approved by the Texas Department of Insurance. A copy of the Department of Insurance's approval letter must be submitted with the automobile club application for certificate of authority.