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Michigan Driver Education Provider Bond

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Michigan – Driver Education Provider – Truck Driver Education ($50,000) Bond
Michigan – Driver Ed Provider – Teen and Adult – 999 or fewer students ($20,000) Bond
Michigan – Driver Ed Provider – Teen and Adult – 1000 + students ($40,000) Bond
Michigan – Driver Ed Provider- Teen, Adult & Truck – 999 or fewer students ($70,000) Bond
Michigan – Driver Ed Provider – Teen, Adult & Truck – 1000 + students ($90,000) Bond

Introduction

A Michigan Driver Education Provider is a licensed business or organization authorized by the Michigan Department of State (MDOS) to offer driver training programs for teens and adults. These providers play a key role in preparing new drivers by delivering classroom instruction and behind-the-wheel training in compliance with the Driver Education Provider and Instructor Act (Public Act 384 of 2006).

To ensure quality, accountability, and consumer protection, providers must meet state licensing requirements, including filing a Driver Education Provider Bond, which guarantees ethical operations and safeguards students’ prepaid tuition.

driving course. The student is happy after passing the driving test with the examiner.

Explanation: Michigan Driver Education Provider Bond

A Michigan Driver Education Provider Bond is a type of surety bond required by the Michigan Department of State (MDOS) for businesses that want to operate as licensed driver education providers.

This bond acts as a monetary assurance that the provider will abide by all state laws pertaining to driver training schools as well as the Driver Education Provider and Instructor Act (Public Act 384 of 2006). It shields the state and students from monetary losses brought on by deception, fraud, or the provider’s inability to supply services as agreed.

For example, if a provider collects tuition but fails to offer classes, misuses student fees, or violates state regulations, a claim may be filed against the bond. The surety will cover valid claims up to the bond amount, and the provider must reimburse the surety.

Read our Michigan Collection Agency Bond.

Key Points

  • Required by: Michigan Department of State (MDOS).

  • Who needs it: Licensed driver education providers (driving schools).

  • Purpose: To ensure compliance with Michigan law, protect students’ prepaid tuition, and prevent financial harm from misconduct or non-performance.

  • Parties involved:

    • Principal: The licensed driver education provider.

    • Obligee: State of Michigan, Department of State.

    • Surety: The bonding company guaranteeing compliance.

See our City of Kentwood, MI – Highway Permit Bond.

Process of Getting the Michigan Driver Education Provider Bond

Here’s a detailed step-by-step process for obtaining the Michigan Driver Education Provider Bond:

  1. Determine the Bond Requirement

    • Michigan law requires licensed driver education providers (driving schools) to file a surety bond with the Michigan Department of State (MDOS).

    • Confirm the bond amount.

  2. Choose a Licensed Surety Bond Provider

    • Contact a bonding company or surety agency authorized to issue bonds in Michigan.

    • Provide business details, such as ownership information, business address, and licensing background.

  3. Complete a Bond Application

    • Fill out the surety bond application, including:

      • Legal name of the driver education business.

      • Owner/partners’ information.

      • Requested bond amount.

  4. Undergo a Credit and Background Review

    • Surety companies check the applicant’s creditworthiness and business history.

    • Good credit usually results in lower premiums; applicants with weaker credit may still qualify but at higher costs.

  5. Pay the Premium

    • The premium is typically a small percentage of the bond amount, depending on credit and risk factors.

  6. Receive the Bond Document

    • Once approved and paid, the surety issues the Michigan Driver Education Provider Bond.

    • The bond form will include the business name, bond amount, and surety details.

Conclusion

The Michigan Driver Education Provider Bond is an essential licensing requirement that protects students and ensures driving schools operate with integrity and in compliance with state laws. By securing this bond, providers demonstrate financial responsibility, build trust with the public, and maintain their eligibility to legally offer driver education services in Michigan.

Get our Kent County, MI – Road Commission Permit Bond.

The idea of driving school and driving lessons.

Frequently Asked Questions (FAQs)

Here’s a structured Frequently Asked Questions (FAQ) section for the Michigan Driver Education Provider Bond:

Is the bond required for both teen and adult driver education providers?

Yes. Any provider offering state-approved driver education programs in Michigan must obtain this bond, regardless of whether they serve teens, adults, or both.

How often must the bond be renewed?

The bond must be renewed annually to remain valid with MDOS. Failure to renew may result in license suspension or revocation.

Can a provider operate without a bond?

No. Operating without a valid bond violates Michigan law and can result in denial, suspension, or cancellation of the driver education provider license.

How does credit score affect bond approval?

Applicants with strong credit usually qualify for lower premiums. Those with weaker credit may still get bonded but at higher rates.

Can an individual instructor use this bond instead of a school?

No. The bond is required for driver education provider businesses, not individual instructors employed by a licensed school.

Need our Kent County, MI – Highway Permit Bond.