Colorado increases surety bond requirement for driver training schools

driver education

On June 10, 2014, the Colorado Department of Revenue Division of Motor Vehicles revised its regulations for commercial driver training schools. Although the previous regulations required such educational institutions to post a surety bond, the new requirements increase the required bond amount from $2,500 to $10,000.

A commercial driving school is defined as any business or any person who, for compensation, provides or offers to provide instruction in the operation of a motor vehicle, and is certified by the Driver Testing Education Section of the Motor Vehicle Division. The aforementioned does not include secondary schools and institutions of higher education offering programs approved by the Department of Education and/or private occupational schools offering programs approved by the private occupational school division.

The changes are explained in the excerpt below.


“g) Insurance: All CDS must have: proof of current and valid vehicle insurance, vehicle registration, general liability insurance, surety bond, and worker’s compensation insurance on file with the Department at all times.”

“h) All CDS’s shall maintain a surety bond, executed by a surety company authorized to do business in Colorado, in the amount of $10,000 with the Department.

1. The bond shall be for the use and benefit of the Department in the event of a monetary loss within the limitations of the bond attributable to the willful, intentional, or negligent conduct of the CDS, or its agents or employees.

2. The bond may be used to indemnify against loss or damage arising out of the CDS’s breach of contract between the CDS and the student.

3. If the amount of the bond is decreased or terminated, or if there is a final judgment outstanding on the bond, the CDS’s certification shall be suspended. The suspension shall continue until satisfactory steps are taken to restore the original amount of the bond.

4. The Department shall be named the beneficiary on the bond.”

These updates to 1 CCR 204-3 Driver Testing and Education Program Rules and Regulations (Recodified as 1 CCR 204-30 Rule 8) can be accessed via the Colorado Secretary of State website.

The experts at are familiar with the update to this surety bond requirement and are here to answer any questions you have and get you the surety bond you need quickly, easily and accurately. Give us a call at 1 (800) 308-4358 between the hours of 7 a.m. and 7 p.m. CST Monday through Friday. Or, fill out an online bond request 24/7.

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