The accident occurred shortly after 2 p.m. Thursday on Polly Drummond Hill Road.
According to police reports, a school bus carrying two students was on Polly Drummond Hill Road when it collided with a car that pulled from a side street.
The car's driver, 53-year-old Julie McCabe of Newark, was taken to Christiana Hospital, where she died.
Officers say the two students on the bus and the bus driver, 54-year-old Nancy Duhamell of Newark, were not injured.
The accident is under investigation.
Information from: The (Wilmington, Del.) News Journal, http://www.delawareonline.com