Bond for Automobile Clubs in Mississippi

The Mississippi-Automobile Club Bond is a form of financial guarantee required for the registration and operation of automobile clubs in the state of Mississippi. This bond protects consumers and government entities from dishonest practices, contractual breaches, and other issues related to the activities of automobile clubs in the state.

What Does an Automobile Club Do?

An Automobile Club provides its members with various car-related services, including roadside assistance, insurance, travel arrangements, and discounts on auto services. These clubs offer services such as towing, tire replacement, battery recharging, and towing in case of an accident or breakdown. Many automobile clubs also provide advisory services on insurance and trip planning to their members.

Example: Boris

Boris recently joined an automobile club to take advantage of roadside assistance and discounts on car service. During a trip, his car unexpectedly broke down on the highway. Boris called the club, and within an hour, a technician arrived and fixed the battery issue on-site. Thanks to his club membership, Boris avoided extra costs and quickly resumed his journey. Boris also plans to use the club’s services to organize a future road trip, getting recommendations on routes and exclusive hotel deals.

How Much Does the Automobile Club Bond in Mississippi Cost?

The bond for an automobile club in Mississippi is set at $15,000.00. The standard rate is 1.500% annually, with a minimum premium of $50.00. A signed application is required, and the bond will be reviewed by an underwriter. A 25% discount is available for multi-year contracts.

How Does the Automobile Club Bond Work?

The Mississippi-Automobile Club Bond ensures that automobile clubs fulfill their obligations to customers and government authorities. This bond protects consumers from dishonest actions and contract breaches, providing them with confidence in the reliability of the services offered.

Example: Boris’s Violation

Boris ran an automobile club in Mississippi and obtained the bond to operate legally. However, he failed to meet his obligations to customers, resulting in a claim against his bond. Boris lost his bond, and his clients received compensation. This case highlights the importance of automobile clubs adhering to all rules and commitments to their customers.

Key Points About the Automobile Club Bond in Mississippi

Agents can issue the bond for automobile clubs in Mississippi through the personal account.

Other Bonds You May Be Interested In

You can explore other bonds on our website, where a variety of business bonds are available across different states in the U.S.

Frequently Asked Questions

How much does the automobile club bond in Mississippi cost?

The bond amount is $15,000.00, with a standard rate of 1.500% annually and a minimum premium of $50.00.

What obligations does this bond cover?

The bond protects customers from losses related to contract breaches or dishonest actions by automobile clubs.

How do I obtain the bond for an automobile club in Mississippi?

A signed application is required and will be reviewed by an underwriter. You can apply for the bond through your personal account.

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Filing Method
Executed bond must be filed with the obligee by agent/principal.
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