What is a Michigan Driver Education Provider Bond?

Michigan Driver Education Provider BondThe Michigan Department of State requires applicants for driver education provider certification to file a surety bond as part of the certification requirements.

The Driver Education Provider Bond guarantees that driver education providers will provide instruction and will not engage in any dishonest activities or misrepresentations.

The bond also serves as financial protection for a student’s contractual rights. Students that suffer any financial damages as a result of a Principal (driving provider) violating the terms of his or her bond will be reimbursed by the Surety once a claim has been made and validated.

Every applicant who requires the bond must be named on the bond as the Principal:

  • For individual owners, the individual’s name must be listed along with the name of the business.
  • For partnerships, each partner must be listed, as well as the name of the partnership itself.
  • For corporations, the name of the corporation along with at least one owner must be listed on the bond form.


What are the bond conditions?

  • The bond must be acquired from a Surety that is authorized to conduct business in the State of Michigan.
  • The Principal seeking the bond must be applying to the Michigan Department of State to be a certified driver education provider under Section 9 of Act 384 of the Public Acts of 2006.
  • The Surety will notify the Michigan Department of State of any payment of claims under this bond.
  • The Principal shall indemnify or reimburse any student, financing agency, or governmental agency for financial losses caused by fraud, cheating, or misrepresentation committed by the driver education provider, employees, agents, instructors, or salespeople.
  • The Surety’s aggregate liability for all reimbursements of any students for the protection of their contractual rights will not exceed the sum of the bond.
  • The bond shall remain in effect continuously unless the Surety cancels it by giving 30 days written or electronic notice to the Michigan Department of State.


What is the bond amount?

The bond amount varies depending on the type of driver education provider.

For teen/adult driver education provider:

$20,000 – 999 or fewer students

$40,000 – 1000 or more students

For truck driver education provider: $50,000

The bond cost is a percentage of the bond amount, usually ranging from 1%-5%. Your financials and credit score will be evaluated by a licensed surety underwriter.


How can I obtain a Driver Education Provider Bond?

Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:


You must first apply for this type of surety bond. If you are ready to do this now, you may know your bond costs by getting your FREE quote HERE!

Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.


Next, you will be asked to submit a few vital information that our underwriter will need to assess, including your credit score.

To avoid any delays, make sure that you have gathered the right information needed before submitting.


Once the underwriting process is done, we will immediately issue your bond and send it to you right away!

Ready to start?

APPLY NOW! Let’s secure your business’ success!

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