The state of Minnesota requires commercial driver training schools to secure and submit a surety bond to the Minnesota Department of Public Safety – Driver and Vehicle Services (DVS) 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 Chapter 171 of the Minnesota Statutes and Chapter 7411 of the Minnesota Administrative Rules governing the operation of driver training schools. 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 Minnesota Driving School Bond varies and is based on the number of students enrolled per calendar year:
- 1 to 100 students – $10,000 Bond
- 101 to 500 students – $20,000 Bond
- 501 or more students – $30,000 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 DVS 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.