What Is SR-22 Car Insurance and Who Needs It?
Car insurance is something that every driver needs to have. But when it comes to more serious driving issues, such as when your driver’s license has been suspended, SR-22 insurance is needed. SR-22 insurance is a document that proves to state motor vehicle departments that you have the financial responsibility to drive. But how do you know if you need SR-22 insurance, and what is it exactly?
SR-22 insurance is a form of financial responsibility, which requires drivers to carry a specific amount of liability coverage. This insurance must be carried by the driver who was found guilty of committing certain violations, or by those who have had their drivers license suspended or revoked. Drivers must have an SR-22 insurance policy to drive legally.
Typically, drivers will be asked to provide SR-22 insurance when they have been caught driving under the influence, driving without insurance, violation of a specific states vehicular laws, have multiple at-fault accidents, or have unpaid fines from other traffic violations. The SR-22 form will usually be in effect for about three years and drivers must remain compliant with the terms for the duration. Failure to do so can result in the driver’s license being suspended or revoked again.
SR-22 insurance can be expensive, as insurance companies typically consider drivers who need SR-22 to be high-risk. The SR-22 form acts as a guarantee to state motor vehicle departments that the driver is currently insured and meets the minimum requirements, so in most cases, you will need to purchase a special type of insurance policy to file the form. Different states have different rules when it comes to SR-22 insurance policies, so its important to look into your states requirements before committing to an insurance policy.
When it comes to understanding SR-22 insurance, its important to know what it is and who needs it. Its important to know how long you have to keep the SR-22 form active, and what the consequences are if you fail to meet the requirements. It is also important to shop around for SR-22 insurance, as there may be more affordable options available than what your current insurance policy offers.
The next four sections will focus on the disadvantages of SR-22 insurance, the advantages of SR-22 insurance, different types of SR-22 insurance coverage, and where to find SR-22 insurance.
Disadvantages of SR-22 Insurance
One of the major disadvantages of having to get SR-22 insurance is the fact that it can be expensive. Not only will you likely have to pay a much higher premium than usual, to account for your riskier status as a driver, but youll also have to pay a filing fee. Since the form needs to be renewed every three years, this can add up significantly. Additionally, if youre unable to keep up with your payments, your license could be suspended until youre able to renew the SR-22 form once again.
Another major downside of having to get SR-22 insurance is that youll be seen as a higher risk driver by insurance companies. This means that your rates could increase significantly or you could be denied coverage altogether, depending on the insurance companys policy. Additionally, if you fail to meet the terms of the insurance contract, the company may cancel the policy or charge you a cancellation fee.
Advantages of SR-22 Insurance
Despite the drawbacks of having to get SR-22 insurance, there are also several advantages to consider. For starters, if youre caught driving without insurance, youll likely have to pay hefty fines. SR-22 insurance can help you avoid these costly fines by providing you with the coverage you need.
Additionally, SR-22 insurance can also help you get back on the road if your license has been suspended or revoked due to certain driving violations. The form helps to prove to the state motor vehicle department that the driver has the financial responsibility to drive.
Different Types of SR-22 Insurance Coverage
When it comes to SR-22 insurance, there are two main types of coverage available: liability and non-owners insurance. Liability insurance covers any damage caused to another persons vehicle in an accident. Non-owner’s insurance covers any damage to your own rented or borrowed vehicle, in case of an accident.
Where to Find SR-22 Insurance
If youre required to get SR-22 insurance, you may be able to find coverage through your existing auto insurance provider. The best way to find SR-22 insurance is to check with your current insurer to see if they offer the coverage. If they dont, they may be able to recommend a trusted carrier who does.
You can also check with online insurance providers as well as local insurance agents, as theyll likely have a list of companies that offer SR-22 insurance policies. Finally, you can also search online for companies that offer SR-22 insurance to compare rates and coverage options. Its important to shop around and compare quotes to find a policy that meets your needs at the best possible price.