Michigan Driving School Surety Bonds

Driving education providers in the state of Michigan are required to post a surety bond with the Department of State (DOS) as part of their licensing requirements. The purpose of this surety bond is to guarantee that the principal (driving school operator) complies with all regulations in Act 384  of the Public Acts of 2006 governing the operation of driver education schools, and ensures that the principal provides reimbursement to students, financing agencies or governmental agencies for monetary loss caused through fraud, cheating or misrepresentation in the conduct of the driver education provider’s business. If a harmed party files a valid claim against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.

The amount for a Michigan Driving School Surety Bond varies and is based on the type of school and the number of students enrolled per calendar year:

Adult or Teen Driver Education Provider

  • 999 or fewer students $20,000 Bond
  • 1000 or more students $40,000 Bond

Truck Driver Education Provider

  • No enrollment requirement $50,000 Bond

This surety bond has a continuous term and remains in effect until canceled. The surety can terminate the bond at any time by giving a 30 day written notice prior to the termination date to the DOS and the principal.

Pacific Surety is proud to offer a variety of approvals regardless of credit with rates as low at 1% annually for qualifying applicants. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.

Surety Bond Name

Bond Limit

Driving School Surety Bonds – Michigan