What is Sr22 Insurance?

People are often confused about what SR 22 exactly is. It is not a type of insurance, as believed by many. It is a vehicle liability insurance document used by some Department of Motor Vehicles (DMV) offices in the United States. It is proof that the driver has the minimum required liability insurance coverage for that particular state. The insurance company is required to notify the DMV if the policy is cancelled, terminated or lapses. It is not accepted or required by all states. Most often you will require this document if your license has been revoked or suspended in a certain state. The SR22 certificate is filed by the home office of an insurance company. It is addressed directly to the Secretary of State and is issued in one of the following ways:

• Owner’s Certificate - This policy covers the vehicles that are owned by the driver. The type of vehicle must be listed on the SR-22. It may also be issued for “All Owned Vehicles”.
• Operator’s Certificate - You can buy this insurance even if you do not own a vehicle. You can opt for a non owner SR 22 insurance policy. In this case the policy will cover the driver in the operation of any non owner vehicle. The financial responsibility requirement can be met through the Operator’s Certificate.
• Operators-Owners Certificate - This certificate will cover all the vehicles that are owned by the driver and also those which are not owned by him or her.

There are quite a few reasons why you may need to file a SR22 form and maintain minimum limits of liability insurance. A few reasons are stated below:

• DUI (Drinking under the influence of alcohol) or DWI (Driving while intoxicated), any serious moving violation or reckless driving.
• Driving without insurance.
• Getting too many tickets within a short period of time or repeating the same offences.
• A suspended or revoked license.
• Driving without lights in the dark. 
• Failure to pay child support is a less common, but nevertheless, a reason which may require filing a SR22 form.

There is another purpose of the SR-22 form - to protect other drivers. If the driver responsible for a serious accident is uninsured the victim will find it very difficult to receive compensation even for serious injuries involving death or disfigurement. The SR-22 helps to ensure that all drivers have insurance and thereby help the victims to receive their due in a timely manner. In the case of a SR-22 bond the surety company will pay out up to the maximum of the SR-22 bond to the victim and then collect the difference between the deposit and the payout from the driver. 

As mentioned above, each state has different requirements when it comes to the SR22 form. For example, states like Kentucky, Delaware, New Mexico, Minnesota, Pennsylvania and Oklahoma do not need SR22s. But if you move to one of these states and you already have a SR22 form, you will have to meet the SR22 requirements of you previous state. Once you need to fill the SR22 form, you are obliged to have it as a part of your auto insurance for about 3 years. However, keep in mind that it multiplies as more offences are committed. For DUI or DWI it is five years, 10 years for the second offence and 20 years fro the third. Refusal of convictions or committing a fourth offence will require you to carry an SR-22 for life. Before your SR22 status is removed you must carry continuous insurance for the specified period else the insurance company will file and SR-26 notifying the State that you no longer have insurance.

SR-22 Insurance Quotes:

The SR-22 filing is usually required when you have committed some sort of driving offence. So buying an insurance policy becomes more expensive than if you had a clean record. However, you do not need to get disheartened as there are several insurance companies that specialize in SR-22 insurance. Your best option is to research the rates offered by different companies. You will get a comprehensive listing on the internet. The insurance premium depends on a lot of different factors like the neighborhood you drive in, marital status, gender, level of driving experience, minimum state coverage, age, driving record and vehicle. Companies tend to more weary if you have had to file SR-22 due to DUI or DWI. Many of these companies also help you file your SR-22. They guide you on what documentation is required, how to fill the form, etc. You will be charged a small fee for this which could range from $15.00 to $50.00.

SR22quotes is a good website to check because they give you easy access to compare the insurance quotes of several different companies. You should check how many points different companies are counting for different offences. Try to look for the company that assigns the least number of points towards your reason for filing SR22. This will help you save more on your premium. Of course, you have to consider the deductible and other things also.

SR-22 Insurance Cost - How much will you end up paying?

SR-22 is not an insurance policy. As explained above it is the form that you are required to file. Getting an auto insurance policy coverage that you purchase when associated with the SR-22 Form is rated according to the normal factors that go into rating a policy irrespective of the SR-22 form filing. The only thing you would have to pay for is a nominal fee to file your form. But since your driving record is checked prior to quoting the cost of the insurance, the reason you are required to and maintain your SR-22 status will affect your premium. And this can even double compared to what you would pay under normal circumstances. You can usually get the SR-22 insurance policy much cheaper online than getting it from an agent because then there are fees and commissions involved.

Minimum Liability Coverage:

Different States are governed by different laws so you will have to check for your state. But usually it is at least $20,000 for a person killed or injured. If there are two or more persons killed or injured it can go up to $40,000. $15,000 is the coverage for property damage.

Alternatives to SR-22 Insurance - Some options to consider:

While many insurance companies claim that they do not charge a higher premium for people who have filed SR-22, you will find you premium considerably higher. Some companies do not even accept you as they deem you to be a high risk driver. There are several companies online that specialize in SR-22 insurance policies but you can check out some other options if you are facing difficulties. Some states allow you to deposit $50,000 in cash or securities with the state treasurer, file a real estate bond approved by a court of record or file a security bond instead of purchasing a SR-22 certificate.

SR-22 Insurance Form - What is this?

The SR-22 form is technically and agreement between the DMV and an insurance company stating that the latter is providing the required coverage for you. This agreement also means that if the insurance company cancels your coverage for any reason they must notify the DMV using another form - SR-26. This will lead to the DMV suspending your driving privileges for not maintaining the required high risk auto insurance coverage necessary for all filers of the SR-22.

This form can be filed by an insurance company, online or in person. If you need your driving privileges to be restores quickly, the fastest way to establish your high risk policy quickly is by filing the SR-22 form online.

How to choose your policy provider if you have filed the SR-22 form:

When you are searching for policy providers do not look at just the premium. You should consider the type of company you will be dealing with. Look into the different policies available in your area to figure which one works best for your needs. Read the coverage offered for your type of SR-22 insurance policy because different offences have different repercussions. One thing you cannot afford to overlook is the cancellation and suspension guideline written into each policy. The more rigid companies will cancel your policy and inform the DMV if you are even a day late in paying your premium. This will lead to your driving privileges being suspended. The bigger companies are a little more relaxed in their rules and will give you some leeway. However, research carefully before you make any decision.

Even though the person required to file SR-22 finds it difficult due to suspension of driving privileges and higher auto insurance premiums, this form has several benefits. It teaches the individual about responsible driving and prevents them from repeating the same offence, protects the victims by ensuring that they receive their due compensation and makes our roads safer to everyone.