What is SR22 insurance and who is it for?
SR22 insurance is a type of liability (coverage) provided by most insurance agencies. This coverage requires a person to file a form called the SR22 form, and it is also referred to as responsibility coverage, financially speaking. A person that has had his or her license suspended, for any reason, will be ordered by the courts to file this form and to obtain a certain amount of liability, whatever the minimum requirements are for that state, or the state in which a person might have to travel to for work.
Who is responsible for reporting it to the DMV?
When a person obtains this form of insurance, the insurer will take responsibility for this driver and the company will file the form with the DMV. The insurer is responsible for this verification, so if the insured does miss payments and has the policy canceled, for any reason, it will be reported to the DMV that he or she is not financially responsible and the license could be taken again.
Don’t insurance agencies have to offer these policies?
There are a few companies that do not offer SR22 filing, so, even if a person has been paying for coverage of his or her vehicle for a while, the insurer could still cancel the policy when it is known that there was a conviction requiring this filing.
How difficult is it to obtain it?
It is not too difficult to obtain the SR22 insurance, but it might be a bit stressful if some companies do not offer it. Be patient and realize that not all companies offer this, and they do not have to. It is a good idea to contact a few companies and receive a few different quotes. That way, a person can make sure that he or she is getting the best price and the best service with a company. When a person is applying for this financial responsibility coverage, a credit and driving record check will be completed and this will be part of what determines the rates.
What is expected of me?
An insurer for automobile SR22 insurance that offers this coverage will have plans for drivers that own their own vehicles, non-drivers, and drivers that use someone else’s automobile. Each type of policy will have a slightly different price and different requirements, per each insurer. It is a good idea to know exactly what is expected of the driver, so that there is no confusion or stress later. For instance, if a person fails to keep up with payments, the policy will be canceled, the DMV will be notified, and that person could lose his or her license again.
Why is it necessary?
Having this coverage and the filing process is all set up so that the state can keep track of people that have had a history, even if it was only once, of driving to endanger, DUI’s, excessive amounts of speeding tickets, or any other serious driving offenses.