What You Need to Know About SR22 Insurance?

Last Revised on November 14, 2010

Love Your Health Money Family & Relationship

An SR-22 insurance is a pretty new thing to most people as it is not very common for most of the automobile drivers. We will try to give you as much information as possible about some of the most frequently asked questions about it.

So what is SR22 insurance? It is a minimum automobile liability insurance that DMV in some states such as Illinois, Arizona, Utah, Washington and Alaska require; drives are required to carry this document all the time with them. It is known as the financial responsibility insurance.

Why do they require this SR-22 form? It is required so that the driver’s license can be reinstated to restore his driving privileges. This usually happens when the driver was in a car accident or traffic related incident where he or she wasn’t carry any vehicle insurance. Remember you only need one ticket from a police office for not carrying an insurance, driving under the influence of alcohol, which will make DMV enforce you to purchase SR-22 insurance.

What happens when my SR22 policy expires or cancels? How long am I required to carry SR-22 insurance policy? Most states require you to carry this policy for atleast three years after revocation. It multiplies as more offenses are committed, for DUI or DWI it is 5 years, 10 years for second offense and 20 years for the third. For the fourth offense and refusal of convictions, sr22 document has to be carried for lifetime. You insurance company will notify you by issuing an sr-26 form, which means your sr22 has been canceled. It is always better to contact with your state DMV if you aren’t sure whether you are expected to continue this policy after the expiration date or not, and what steps to take next.

What’s the minimum liability coverage with sr22? It will vary from state to state as they govern different laws. But generally, it should be at least $20,000 for one person killed or injured, $40,000 for two or more persons killed or injured and $15,000 for property damage.

How much SR-22 insurance cost and where can I buy a cheap policy? It will depend on so many factors such as level of offense(s) you as a driver committed, the neighbor you drive in as some areas are more hazardous than others, your age, level of driving experience, state minimum coverage, taxes, and insurance agent or agencies you buy from. Usually the sr-22 insurance policy online is much cheaper than the ones that have agents all over the United States as there are commissions and fees involved. But this policy will be atleast twice as expensive as regular car insurance since you are considered a high risk driver whether for not carrying a policy or driving intoxicated. Your expected monthly cost be averaging double, if not more than, the normal rate. On average, it cost about $75 per moth.

What’s the alternative for SR-22 insurance? This policy can be very expensive and sometimes some auto insurance companies won’t even accept you as they assume you are a high risk driver no matter how much your payment are set up at. Therefore, some state will allow you to deposit $50,000 in cash or securities with the State Treasurer, file a surety bond, or file a real estate bond approved by a court of record instead of buying a sr22 certificate.

Is it any different from SR50? Yes, SR-50 is the proof of current insurance.

Do I have to get one for motorcycle also? Yes, if you are told to get one for your car and you drive a motorcycle. Try buying them online as they are sold at cheapest rate. Remember that your insurance company files sr22, but you may have to ask or remind them about the filing process.

As always, please feel free to leave suggestions, ask any questions for help or simply discuss the topic. We highly appreciate your involvement and input everyday. If find it helpful, please share it with your friends by using one of the buttons below.

Any Comments, Solutions, Questions, Reviews or Feedbacks You Have

You must be logged in to post a comment.