SR22 Insurance Cost
Automobile liability insurance that is insurance to protect the owner’s legal liability for bodily injury or property damage in the event of an accident that is the fault of the owner, is controlled by individual states. The federal government does not oversee this insurance or require automobile insurance.
For that reason, laws such as speed limits, methods of driving, and automobile insurance are made by and enforced by the individual state. Each state has its own laws with regard to financial responsibility in the event of an at-fault accident.
An SR-22 is a document that shows legal proof of financial responsibility to the state in which an individual resides. The need for an SR-22 filing from your insurance company comes from a number of situations, among them the following:
• Suspended or revoked driving license
• Repeatedly offending against traffic laws and accumulating points on a driver’s license.
• At-fault accidents without insurance.
• A DUI or DWI moving violation.
A court ordinarily requires that an SR-22 be filed to ensure that the individual carries basic liability insurance. The insurance company will subsequently notify the court if the insurance coverage lapses or is cancelled. The term that the SR-22 is required to be in force varies according to the sentence of the court.
Be aware that the SR-22 does not provide backdated coverage for the accident or offense that occurred. It only provides ongoing coverage from the date the insurance was established.
Variations in state laws
Some states do not require SR-22 filings. These are Delaware, Kentucky, Minnesota, New Mexico, North Carolina, and New York. However, if required to carry an SR-22 filing in, for example, Colorado, a driver must continue to keep that filing and SR22 insurance in force even though the driver moves to New Mexico. Each driver incurs the violation in one state and is subject to the laws of that state until the obligation is over.
Legal limits of liability maintained vary in each state. It is wise to check with a local insurance agent to determine what these might be.
A fee is charged by the insurance company to file an SR-22 because of the additional paperwork involved. The cost of the SR22 insurance policy itself depends largely upon the limits of liability desired, whether physical damage for the vehicle is required, and then the surcharge for the violations incurred. An SR-22 filing indicates that the driver has been involved in a rather serious violation. Each insurance company levies a surcharge based upon the experience of the driver(s) of the vehicle(s). This will affect the cost of the insurance. The only way to determine this cost is by contacting an agent or company.
Even though the state requires only a certain amount of liability coverage, your agent may suggest that you increase this amount. Looking carefully at the basic coverage, for example: The limits are sometimes $50,000 per person with an aggregate of $100,000. Being aware of current medical costs, it is easy to see that this will not pay for much in the way of injury should an at-fault accident occur. The increments of coverage are relatively inexpensive considering the amount of liability. The fact remains that the person driving the car must assume anything over and above the costs of the accident. Hospitalization costs and property damage costs can be astronomical.