So, you’ve gotten in trouble with the law and now you are required to have SR-22 car insurance. But what is it? In the following paragraphs, we’ll explain the idea behind the SR-22 and how it applies. It’s sufficient to say that if you are required to carry it, you’ve got your work cut out for you in cleaning up your record.
For starters, it is important to note that there really is no such thing as SR-22 car insurance. The SR-22 is simply a legal form indicating you have a valid policy in force and you have demonstrated that you have the financial resources to continue paying car insurance.
Common Reasons for Requiring the SR-22
Though things might be different from state to state, there are three common reasons why people are required by a court to file the SR-22. The first reason is allowing your car insurance policy to lapse through nonpayment.
When you stop and think about it, this makes perfect sense. The SR-22 insurance proves to the state that you have a policy and can pay for it. The state would want that assurance if you previously allowed your policy to lapse. When the SR-22 is required for these types of cases, drivers must usually maintain it for one or two years.
The second reason for the SR-22 is being involved in an accident without proper insurance in force. Again, the point of the form here is to provide an affidavit to the state that you are covered in the event of future accidents. In such cases, the SR-22 is required before a suspended license and registration will be restored.
The third reason for the SR-22 is a DWI/DUI conviction. This may seem unusual, but drunk drivers pose an especially serious threat for obvious reasons. Courts want to know convicted drivers have appropriate insurance before restoring driving privileges.
Who files the SR-22
Who actually files the form depends on individual state laws. In some states, the insurance company is required to file it on behalf of the driver. By doing things this way, the state ensures the SR-22 is not filed fraudulently. If the form is filed, and the driver allows his or her insurance to lapse, the insurance company notifies the state.
In other states, the individual driver files the SR-22 him or herself. He or she will likely need proof of a legitimate insurance policy at the time the form is filed. However, make no mistake, insurance companies still notify the state if a policy is canceled or allowed to lapse.
As for the duration of the SR-22, that’s up to state law and the discretion of judges. Expect 1 to 3 years in most cases. You should also expect a requirement to carry your SR-22 across state lines should you move to another state. Most of the time drivers are required to fulfill the entire term of the SR-22 regardless of where they live.
What It Means to Insurance Rates
From the perspective of the driver, the SR-22 is more than just an administrative hassle. It also means higher insurance rates for the duration. Again, it makes perfect sense if you think about it.
If a court requires the driver to file an SR-22, that indicates the driver presents some sort of risk above and beyond what’s considered normal. That greater risk means higher rates.
If you want to always be able to buy cheap car insurance, do not get slapped with an SR-22 requirement. Make sure you never drive without insurance; make sure you do not let your policy lapse for lack of payment; make sure you NEVER drive under the influence of drugs or alcohol.
