Key Facts You Need To Know About SR22 Insurance
SR-22 insurance is a unique form of coverage that is required in specific situations. While it may seem confusing and unfamiliar, understanding the basics of SR-22 insurance is crucial for individuals who find themselves in need of it. Here are three important facts about SR-22 insurance.
SR-22 is Not Insurance, but a Certificate
Contrary to popular belief, SR-22 is not an insurance policy itself. Instead, it is a certificate that demonstrates proof of financial responsibility. The SR-22 certificate is issued by an insurance company and filed with the appropriate state authorities on behalf of the individual.
The need for an SR-22 certificate typically arises when an individual has been involved in certain traffic violations or has had their driver's license suspended or revoked. It serves as evidence that the individual meets the state's minimum insurance requirements.
It is important to note that even if you do not own a vehicle you may need to purchase the certificate. You can buy non-owners insurance and have the certificate added so you are covered if you are involved in an accident when borrowing someone's car.
It's Often Required for High-Risk Drivers
SR-22 insurance is usually required for individuals who are considered high-risk drivers by their state's Department of Motor Vehicles (DMV). This designation can stem from various factors, including DUI or DWI convictions, driving without insurance, multiple traffic violations, or at-fault accidents.
The requirement to obtain an SR-22 certificate may be imposed by the court as part of a legal mandate or by the DMV when reinstating a driver's license. The duration of the SR-22 filing period varies by state but is typically three years.
Noncompliance Can Result in Serious Consequences
Maintaining continuous and active SR-22 insurance coverage is crucial during the mandated filing period. Failing to maintain SR-22 insurance can lead to severe consequences, including license suspension, hefty fines, and even imprisonment.
If there is a lapse or cancellation in SR-22 coverage during the required filing period, the insurance company is obligated to notify the state authorities. This triggers a series of penalties and reinstatement procedures that can be time-consuming and costly.
To avoid these repercussions, it is essential to pay premiums on time, maintain the required coverage, and promptly renew the SR-22 certificate as necessary. Compliance with SR-22 requirements demonstrates responsible behavior and can contribute to the eventual restoration of a clean driving record.
While SR-22 insurance may seem unfamiliar and confusing, it is vital for individuals who have been classified as high-risk drivers. Understanding that SR-22 is a certificate, not insurance itself, recognizing its requirement for high-risk drivers, and appreciating the consequences of noncompliance are key factors to navigate the SR-22 process successfully.
For more information on SR-22 insurance, contact a professional near you.
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