An SR22 is not among one of the most talked-about documents in the insurance world. Chances are most people haven’t heard about one before, but this shouldn’t be mistaken to mean an SR22 insurance isn’t important. It is like most insurance-related documents–highly important.
Before getting to its uses, it’s critical to break down what this type of insurance is about.
What Is An SR22 Insurance?
Although commonly referred to as ‘insurance’ it’s important to note that an SR22 isn’t insurance in the strictest of sense. It is, however, evidence of one.
An SR22 refers to the document a driver gets to verify that they have proper auto liability insurance. This certificate of financial responsibility is usually required from drivers who have been involved in car accidents, caught speeding, or found driving while drunk. It’s necessary after a license has either been suspended or revoked.
After filing an SR22 for the first time, typically, it becomes a requirement for a few years in order for the state to make sure you’re still complying with your insurance policy renewals.
So, now that you know what an SR22 is, it’s time to look at who might need it, what it’s for, as well as how everything related to it works.
Who Needs An SR22?
As has been stated above, there are only specific kinds of drivers that will ever need an SR22 insurance document. The circumstances that might call for one include:
- Being charged with drunk driving
- Serious or recurring traffic offenses
- Being involved in an accident in which one is at fault and not covered by any insurance.
- Revocation or suspension of license
Once SR22 insurance is required of you, typically your auto insurance cost will go up. If you need to know more about why there is a need for this surcharge on your insurance rate, you can always check in-depth responses on any insurance info sheet or related site.
Do You Need An SR22 Forever After Its First Requirement?
The short answer is no. There is a limit to how long you will have to produce an SR22 document. These terms will differ depending on which state you’re in. But in general terms, they might look like this:
- You’ll be required to show that after the offense(s) in question, you had continuous auto liability coverage for a period not less than three years.
- Anytime your policy expires or is not renewed in time, the state will need to be notified.
- If you fail to adhere to these or other set terms, your license might end up being suspended.
- If you comply and fulfill the stated requirements, the need for you to provide this document will be lifted.
Once an SR22 is no longer needed, that is, you’ve fulfilled all its terms, this doesn’t necessarily mean that it will automatically fall off of your auto liability coverage. You’ll likely have to make that call to a representative of your insurance company and ask they remove it. Once they do, you might start to notice the overall cost of your insurance go down.
Is An SR22 Relevant To A Person Without A Car?
Yes! An SR22 isn’t just limited to the owner of the car. If you were caught in any of the previously mentioned circumstances that warrant an SR22, you will likely have to be issued with a non-owner’s SR22.
What’s Covered Under An SR22?
An SR22 will cover any damage to property and any other liability that might arise from an accident that involves the covered driver. In essence, it covers any liability of the driver to those involved in the accident. In almost all cases, it won’t cover the replacement of the owner’s car or that of the other party in the accident. The other party’s car might be covered only if it was a no-fault accident.
How To Get An SR22
Not all insurance companies offer SR22 filings so you’ll have to check with yours. If your insurer already offers SR22 insurances then all you’ll need to do is call them up. Let them know what you need and they will take care of it on your behalf. An SR22 endorsement will be added to your existing policy then an SR22 document will be filed with your state.
However, if your insurer doesn’t offer SR22s or you currently don’t have auto insurance, then you’ll have to purchase a new policy in order to get your SR22. Just remember that most insurers don’t offer SR22 coverage so state quickly that you’re purchasing the new policy in order to get an SR22. In this way, they’ll know upfront what it is you need and if they can provide it.
Conclusion
An SR22 is a vital document to have for some drivers. If you’ve been caught driving under the influence of alcohol, over speeding, driving without insurance, or other typical driving offense, then an SR22 will be necessary to show the state you’re complying with your auto liability coverage. It ensures that should you be involved in an accident, affected parties will typically be covered.
