Driver education schools must post a surety bond to legally conduct business in the state of New Mexico. This surety bond has a penalty amount of $5,000 and must name the New Mexico Department of Transportation – Traffic Safety Bureau (TSB) as obligee. The purpose of this surety bond is to guarantee that the principal (driving school operator) complies with all regulations in Title 18, Chapter 20, Part 3 of the New Mexico Administrative Code governing the operation of driver education schools, and ensures the satisfactory performance of all contracts with students, including tuition refund agreements, and the maintenance of student records. 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.
New Mexico Driving School Surety Bonds have a continuous term and remain in effect until canceled. The surety can terminate the bond at any time by giving a written notice to the TSB and the principal.
Pacific Surety is proud to offer a variety of approvals regardless of credit with rates as low at $100 annually and discounted two-year pricing at $175 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.