There is a variety of types of auto insurance that you are likely familiar with - from liability to comprehensive to collision - but one type you may not recognize is SR22 insurance. SR22 insurance is a certification of financial responsibility and is usually mandated by a court order following a conviction for a major traffic violation. Let's explore SR22 car insurance in more depth.
Often referred to as SR22 car insurance, an SR22 is not actually insurance, but rather a certification of financial responsibility submitted to the Department (DMV) or Bureau of Motor Vehicles (BMV) on the policyholder's behalf. It states that the policyholder has the mandated coverage limits set forth by a court order after a violation.
There are a variety of reasons why a person might need SR-22 car insurance, but it's mainly for those who have major driving infractions on their records. These infractions may include the following:
When a court mandates someone to have SR22 insurance, that person should request it from the insurance company they're using. It remains on file with the DMV or BMV until the time period expires. Here are the steps involved in the SR22 process:
Many insurance providers offer SR22 coverage; the policyholder just has to request that a copy of their policy be submitted to the DMV or BMV, depending on the state. Not every insurance company offers an SR22 and some companies may not write a policy for someone with a major traffic violation or someone that requires an SR22. If you are ordered to carry an SR22, it is a good idea to shop around for coverage.
Obtaining SR22 car insurance is a simple process. Once you select an insurance company for your coverage, it can submit the filing the same day you request it. Many states have digital filing so that policy changes take effect immediately. Those that require a paper filing can take a few days to complete.
While the filing fee for the SR22 is low or no-cost, it's likely that your insurance rates are going to increase with the mandate. This happens because drivers who are required to have an SR22 are considered high-risk by insurance companies.
Because SR22 car insurance can be costly due to premium increases, it's only natural to look for ways to lower the premium. There are simple things that you can do such as increase the policy deductible. It is important to remember that you will be responsible for the cost of your deductible if you are involved in an accident so always choose a deductible that you can afford. Another way to lower the premium cost is to consider the type of vehicle you drive. Luxury and sports cars tend to be more expensive than sedans and other vehicles with high safety ratings. Automatic withdrawals and paying your premiums up front can also help lower the cost. Keep in mind that some insurance companies offer certain discounts on premiums so talk to your agent and find out for what you may qualify.