SR 22
From SR-22 is not a type of auto insurance but simply proof of insurance liability
for drivers.
What is an SR 22 Form?
An SR 22 is a state-specific insurance certificate of financial responsibility
for drivers who require it and it is issued by an insurance company directly to the state DMV. It is
usually required if a driver's license has been suspended or revoked and is not insurance but proof of minimum
liability insurance--it simply lets the state know that a driver has minimum motor vehicle
liability coverage required to drive legally in that state. All states do not require or accept an SR22 Form
and requirements vary from state to state.
The most common situations that may cause the SR22 to be required are the following:
- Being caught driving without auto insurance.
- Drunk driving (DWI or DUI) or other serious driving violation.
- Auto accident caused by driver who has no insurance.
- Number of repeat traffic violations within a short period of time.
- Driver's license has been suspended or revoked.
The SR22 document is issued by an insurance company and shows proof that the offending driver has financial
responsibility. It is usually required to be carried for 1 to 3 years depending on state, after which it expires
provided no further violations have been committed. The insurance company is required to notify the state if the
driver cancels the insurance or allows it to lapse for any reason. This may cause the state to suspend the driver's
license again.
How to get an SR 22 policy
SR-22 insurance must usually be bought through an authorized insurance company. After an application is filed and
the premium paid, the insurance company sends the SR 22 to the state for approval. When that happens, the driver
will receive the SR 22 form along with a letter from the state. Most states require the insurance to be renewed
well before it lapses or steps may be taken against the holder.
How much does an SR 22 cost?
The SR22 itself only entails a small filing fee, usually $20-$50 depending on state and the circumstances, but its
requirement will seriously impact a driver's car insurance premium. How much the premium is depends on the factors
that caused the requirement in the first place--past driving record, type of violation, age, how many years driving
with a license etc. For example, if one was caught driving without insurance, the effect is less severe than if one
needs an SR-22 for a DUI or DWI (drunk driving).
Financial impact of an SR22
The most obvious effect is an increase in auto insurance premiums for a number of years. If the driver is able to
maintain a spotless record during those years, he or she can go back to paying 'normal' insurance premium rates
again. Since insurance rates are based on financial risk, having a good credit record can result in lower premiums
because of the lower perceived risk of default. An SR 22 filing by
itself should not affect one's ability to get auto financing or to increase its cost.
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