Thursday, 17 November 2011

SR22 Insurance Explained


If you need SR 22 insurance then your driver’s license must have been suspended for one reason or another. SR22 insurance is a type of insurance that people have to get in order to prove to the DMV (Department of Motor Vehicles) of their state that they have adequate auto insurance coverage. Additionally, it tells the DMV that, should you lose that insurance for any reason, the insurance company will let the DMV know about it.

Why Might You Need SR22 Insurance?

There are a host of reasons a person may need to obtain SR22 insurance. From driving without insurance to getting a DUI (Driving under the influence) and everything in between, you may need SR22 insurance before you can have your license reinstated.

Many insurance companies use a points system with regard to motor vehicle infractions. If your state is one of the states that does, then you’ll get points placed against your license if you get a speeding ticket or if you’ve been convicted of a DUI. Each infraction carries with it a certain amount of points. Once you rack up too many points, your license is automatically suspended. For many drivers, the only way to get it back is to get SR22 insurance.

Because this insurance is for high-risk drivers, you can bet that it can be costly. You should shop around and get SR22 insurance quotes before committing to one company.

SR22 Non Owner Car Insurance

You may also be required to obtain SR22 insurance even if you don’t own a car. This is called non owner SR22 insurance, and will cover damages to another vehicle that you may hit while operating a vehicle you do not own.

Moving to another state

Because every state is different, it’s important that you understand that even if you’ve been ordered to have SR22 insurance in one state, and you move to another state that doesn’t require it, you’re still liable to maintain the SR22 insurance in the state you left. Additionally, if the state you move to only requires coverage that is less than what you have under the SR22 coverage, you are still obligated to maintain the original amount of coverage that you had when you obtained SR22 insurance.

Other Factors

You may assume that every auto insurance company offers SR22 insurance, but they don’t. Because not all of them do, you’ll be limited in choosing a company to cover you.

Removing SR22 Insurance

In most states you can cancel your SR22 insurance once the mandated period of time you were required to have it for is up. You can call your insurance agency and tell them that you’ve honored the mandated time frame. The insurance company with then send the proper form to the state letting them know that the coverage has been cancelled. Be sure to attend to this when your required time is up, as your insurance company is not very likely to keep track of it for you and you could be carrying and paying for the insurance unnecessarily.

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