SR-22 Auto Insurance

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 SR-22 insurance. SR-22 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 SR-22 car insurance in more depth.

Often referred to as SR-22 car insurance, an SR-22 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:

• DUI – one of the most common reasons for an SR-22 mandate is due to a driving under the influence conviction. This applies to those convicted of driving while intoxicated or under the influence of drugs that limit the driver’s capacity.
• Negligent driving – someone who is convicted of a major traffic violation such as driving negligently or recklessly, usually in excess of 20 mph over the speed limit, may be required to have SR-22 car insurance.
• Multiple offenses in a short time period – those who rack up points against their license for things like speeding tickets or other minor traffic violations in a short time period may be court-ordered to carry SR-22 car insurance.
• Driving without insurance – if a driver is in an accident and doesn’t have insurance coverage, the court may require them to have SR-22 coverage after the accident.
• Reinstating license after revocation or suspension – drivers seeking reinstatement after having a revoked or suspended license will often be required to have SR-22 car insurance before they’re granted permission to drive again.

When a court mandates someone to have SR-22 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 SR-22 process:

1. The policyholder is convicted of a major traffic violation or other qualifying offense that requires SR-22 auto insurance. These violations may include reckless or negligent driving, too many infractions or at-fault accidents in a short time, driving without insurance, having a revoked or suspended license, history of DUI or DWI, or failure to pay court-ordered child support.
2. The policyholder can either request the SR-22 from his/her current insurance company or shop around for an SR-22 insurance quote if they do not have insurance. Those who already have coverage will not need to get new insurance unless the provider drops them.
3. Once the SR-22 is filed with the state, the policyholder does not have to do anything except maintain the coverage.
4. If the policyholder fails to maintain the appropriate coverage, the insurance company must notify the state DMV or BMV and they may suspend the driver’s license until the driver is in compliance.

Many insurance providers offer SR-22 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 SR-22 and some companies may not write a policy for someone with a major traffic violation or someone that requires an SR-22. If you are ordered to carry an SR-22, it is a good idea to shop around for coverage.

Obtaining SR-22 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 SR-22 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 SR-22 are considered high-risk by insurance companies.

• Typical increases in insurance rates vary between 14 and 40%, but some could increase as much as 89%, depending on the infraction.
• Some insurance companies may decide that the policyholder is too much of a risk and drop them altogether.