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Michigan driver ed provider bonds.
$200. 999 or fewer students.

Michigan licenses driver education providers through the Secretary of State, with the bond sized to enrollment. A teen/adult provider with 999 or fewer students files a fixed $20,000 bond — ours is $200, the price our carrier sets for this specific bond. The bond issues the moment you pay — no credit check.

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Required for a teen/adult driver education provider with 999 or fewer students under MCL 256.629
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Fixed price, fixed amount — $20,000 bond, $200, no quote process
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Cross 1,000 students and the bond steps up to $40,000 — we issue that tier too
A-ratedA.M. Best carriersInstantunderwriting process1–3 yrterms available
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does a Michigan driver ed provider bond cost?

$200 at the $20,000 amount, the same for every applicant.

How it works

Three steps. One sitting.

Provider license bonds are the simplest thing in surety. Here's the entire process:

NOW · ONLINE

Apply online

Provider and owner details and an effective date. That is the application. No credit check.

MINUTES, USUALLY

Pay & e-sign

License bonds like this are among the thousands of bond types that issue right after purchase.

SAME DAY

File with the Secretary of State

Your executed bond and power of attorney arrive by email, ready to file with your driver education provider license. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

Michigan licenses driver education providers through the Secretary of State, and conditions the license on a surety bond whose amount scales with enrollment. A teen/adult provider with 999 or fewer students in the calendar year posts a $20,000 bond.

It's a three-party arrangement: you (the principal), the surety carrier, and the State of Michigan (the obligee), with students, financing agencies, and governmental agencies as the protected parties. The bond is conditioned to indemnify or reimburse a student, financing agency, or governmental agency for monetary loss caused through fraud, cheating, or misrepresentation in the conduct of the provider's business.

By statute, the surety pays a claim only after a court of record enters a judgment based on fraud, cheating, or misrepresentation against the provider, and total liability never exceeds the bond. The surety can cancel only on 30 days' notice — we track it and notify you 60 and 30 days out.

MCL 256.629Michigan Compiled Laws 256.629 requires a driver education provider to file a surety bond with the Secretary of State sized to enrollment: $20,000 for a teen/adult provider with 999 or fewer students in the calendar year, $40,000 for 1,000 or more, and $50,000 for a commercial vehicle driver education provider. The bond indemnifies a student, financing agency, or governmental agency for monetary loss caused through fraud, cheating, or misrepresentation, payable only after a court of record enters judgment, with aggregate liability capped at the bond amount.

You need this bond if you're

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A teen or adult driver education provider with 999 or fewer students in the calendar year
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Applying for a provider license — the bond is filed with the Secretary of State
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Renewing a provider license and your bond is expiring or your surety non-renewed
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Opening a new driving school that licenses as a driver education provider
After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the $20,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

File with the Secretary of State. Your executed bond and power of attorney arrive by email, ready to file with your driver education provider license. Wet-ink original mailed on request.

What sets the price

The premium is fixed at $200 at the $20,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.

No credit check.

One application, issued instantly.

These are the actual issuing fields. No credit check.

Start the application →
FAQ

Common questions.

How much is the Michigan driver ed provider bond at this tier?The premium is $200 flat — the price our carrier sets for this fixed $20,000 bond, the same for every teen/adult provider with 999 or fewer students. The $20,000 is set by statute (MCL 256.629), so there is no quote process.
What if I cross 1,000 students?The bond steps up to $40,000 once you have 1,000 or more students in the calendar year, with its own fixed price. We issue that tier too — see our $40,000 driver ed provider bond page for the current number.
Do I pay the $20,000?No. You pay $200. The $20,000 is the surety's maximum liability if a valid claim is made against the bond — not a deposit, and nobody holds your money.
Is there a credit check?No credit check: the application collects no credit information. Most fixed-amount license bonds like this clear without one.
When does it renew?The bond must stay active for as long as you hold the provider license. You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out, with autopay available.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
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Price and requirements checked on the carrier’s application, . Page updated .

Finish your provider license today.

$200, no credit check, bond often issued in the same sitting. Free until issued.

Your price$200
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