SR22 Insurance-What It Is
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SR22 insurance has mystified many people for a long time. Most people never really know what it is or why its used. Some people (falsely) believe it is an actual insurance policy. Some believe that it is only for the worst drivers. While some believe that its no big deal at all. As with all things in this world the real answers lie somewhere between the extremes.
What Is An SR22?
In general terms an “SR22″ is not an insurance policy. It is a certificate that is attached to an auto policy. The attachment proves that the driver is meeting certain requirements and responsibilities proving he has the minimum liability insurance in place. In most cases a driver that is required to have this attachment on their policy has violated one or more traffic laws. They have been found to be driving while suspended or without a valid license. Or they may have been charged with a DUI or DWI. Or leaving the scene of an accident. Most of these offenses may have resulted in a loss of the drivers license. The SR22 is usually attached as part of the requirements for reinstatement of the drivers license. The insurance company that provides the offending driver a liability policy does a filing with the state that issued the driver a license. Some times the driver just may not have been able at the time of the violation to show proof of liability coverages. This is another reason why an SR22 may be needed.
What To Do If An SR22 Is Needed
If it has been determined by the proper authorities that a driver needs to get an SR22 to get his license reinstated, it is a simple matter to deal with. If the driver has state approved liability insurance in place, all he/she needs to do is visit the agent that handles your car insurance policy. Inform them of the need for the filing and the agent will do the paperwork and present the driver with a copy of the SR22.
In my state of Indiana the agent will also fax a copy to the Bureau Of Motor Vehicles (BMV) for the insured so that the license can be reinstated as quickly as possible. A small fee is added to the insurance premium total so there will be an increase in the rate the driver pays. This rate change is usually not a huge amount for the filing itself, averaging between $15-$25. However the driver may think it is when he gets his next bill due to the violations that triggered the SR22. These can make a big difference in insurance rates. Once the driver has obtained the SR22 filing, he must keep the filing for 3 years which means he must keep his liability policy in force with no lapse in coverage. To let it lapse could result in loss of the license and or reinstatement of any of the charges that may have been dropped or lowered from the violations.
Am I Now High Risk?
One question that often comes up with SR22 filings is “am I now high risk“? Well the answer depends on where you get your policy (what company) what type of driving record you had and the reasons for the filing. The term “high risk” in most states is more or less a label that is placed on anyone who is covered under a non-standard insurance policy. A non-standard policy may be any liability policy that only provides the minimum coverages needed to be legal in your state.
Some of the big name standard insurance companies have worked to place a sort of social status to their policies in that you must meet certain qualifications to be covered by them. To these companies an SR22 may disqualify you from being insured through them, therefore you are “high risk“. Of course drivers who have a number of accidents, DUI’s, speeding tickets or license suspensions can be labeled high risk drivers.
The premiums for coverages in non-standard insurance policies are much more expensive then they are in standard insurance. So be prepared to see an increase if you are labeled high risk.
What if I Don’t Own A Vehicle?
In some cases you may no longer own a vehicle but you still need or want your license to be valid. And you have been told to file the SR22. First off you can not get insurance on a car you do not own. Nor can you get the filing put on a policy that belongs to someone who lets you drive their car. In these cases you can get a non-owners insurance policy and have the filing applied to that policy. So then you can have your license reinstated.
However you should understand that the non-owners policy will not replace the coverage an auto owner has on their car. If they let you drive it and your involved in an accident, Their insurance must pay first and they must exhaust their coverages before the non-owners will pick up. Never make the mistake of driving a vehicle that is uninsured by its owner thinking that your non-owners policy will pay for any damages.
So that’s about it for SR22 insurance filings. Remember that if you need to do the filing, its as easy as calling your agent or buying an auto insurance policy. It can be done by phone in some instances or you can go to the agents office. Check with your states BMV to learn about any specific state requirements that may be needed. Drive safely friends.
Darryl Brooks
http://insuranceinfoconnection.com
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