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Michigan Driver Education Provider Bond

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How much does a driving school surety bond cost in Michigan?

The required Michigan driver education provider surety bond amount will vary based on the number of students enrolled in the driving school within the past calendar year. The cost of this specific bond is heavily dependent upon underwriting criteria. Applicants with strong financial credentials typically pay a premium that’s just 1-3% of the required bond amount.

Bond Type
$20,000Driver Education Provider BondTeen/Adult Driver Education: 999 or fewer students/calendar year
$40,000Driver Education Provider BondTeen/Adult Driver Education: 1000 or more students/calendar year
$50,000Driver Education Provider BondTruck Driver Education Provider

Why do I need this bond?

Michigan driver education provider surety bonds assure students that driving teachers will provide instruction and will not engage in any fraudulent activities or misrepresent themselves in any way. Students that endure any financial loss as a result of a principal (driving instructor) violating the terms of his or her bond will be reimbursed by the surety once the offending party has been convicted in court. Principals are responsible for compensating sureties for any money they have to pay out.

What’s the fine print?

Michigan driving education bonds are continuous in nature. The surety company must provide the Department of State with 30 days’ notice prior to cancellation.

Every applicant who needs the bond must be named on the bond as the principal. In the case of an individual owner, the individual’s name must be listed along with the name of the business. In the case of partnerships, each partner must be listed, as well as the name of the partnership itself. For a corporation, the name of the corporation along with at least one owner must be listed on the bond form.

How to become a driver education provider in Michigan

The following must be executed in order to obtain the appropriate license:

  • Submission of a properly completed application
  • Possession of a maintained and established office location
  • Established classroom facilities
  • Passage of a criminal history check

The application must contain the following:

  • The name, address, date of birth and social security number of each owner and/or partner
  • A statement of previous history, record and associations of all applicants to ensure good character
  • A statement of whether or not the applicants have ever applied for a driver education provider certificate in the state or another state, as well as the results of that application
  • A statement indicating whether or not any applicants’ licenses were ever revoked or suspended
  • A verification from the local fire marshal that the school meets zoning specifications

An application for a driver education provider certificate will not be acted upon until the application, bond, student contract forms and all other required documents are filed and the appropriate fees are paid to the Department of State.

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