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Driving School Bond

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What is a Driving School Bond?

A driving school bond is a surety bond that is required in some states for private schools that offer driving instruction for a fee. The bond ensures that the driving school complies with state and local regulations when working with clients. If the driving school fails to abide by the law, a claim can be made against the bond to cover financial losses incurred by the client.

Like other surety bonds, a driving school bond is a contract between three parties. The driving school is the principal required to post a bond, while the obligee is the state or local authority that requires a bond to be in place. A surety company provides the bond to the principal and pays for claims against the bond. However, the driving school is responsible for repaying claims paid by the surety company.

What Does a Driving School Bond Cost?

The guidelines for posting a driving school bond vary depending on state-specific regulations, and the total bond amount can range from $1,000 up to $50,000. Fortunately, driving schools do not pay the full bond requirement. Instead, bonds are priced as a percentage of the bond amount, typically costing between 1 and 10% of the bond.

The percentage of the total bond requirement you pay for a driving school bond depends on several different factors, including details of the business and your personal credit score. Because a driving school bond functions as an extension of credit to your business, having a clean credit history and high credit score are beneficial in keeping the cost low. You can still get a driving school bond with less than perfect credit, but you pay a higher percentage than someone who has a healthy credit score.

How Do I Get a Driving School Bond?

You can submit a short online application for a driving school bond and receive a quote once your business and personal credit details are reviewed by the surety company.

Frequent Questions

How much does this bond cost?

The cost is usually 1 – 10% of the bond amount. Keep in mind that pricing varies based on the bond amount, and your financial strength.

What is the process?

Apply and get approved on our website, sign the surety agreements, and we will ship the bond out. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.

Can I get this bond with bad credit?

Yes, it’s possible, but bad credit usually results in higher rates.

Does it matter where I get a bond?

Yes. We provide the lowest rates possible as a result of the large volume of bonds we write.

What if a false claim is filed?

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

Are you looking for a different type of bond?

You can take a look at our full list of license and permit bonds.

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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.