What is an SR-22 Certificate and How Does it Affect Your Auto Insurance?
An SR-22 Certificate is a special type of filing that can have a significant impact on the amount of auto insurance you pay. It is an insurance document that a driver must complete to prove that they are financially responsible and have the necessary level of insurance coverage. It is often required by high-risk drivers or those with multiple traffic violations.
Though an SR-22 may seem daunting, there are some steps that need to be taken to make sure you are properly compliant with the filing. Firstly, it is important to contact your insurance provider and ask them if they offer SR-22 insurance coverage. Generally, they will provide you with the necessary paperwork that you need to have completed. Once that paperwork has been filled out and submitted, the filing will be processed by your insurer and the filing will be sent to your states Department of Motor Vehicles.
Once your state DMV has received the filing, it will usually be monitored to ensure that drivers remain insured and financially responsible in order to keep their license and driving privilege intact. The SR-22 is in effect for a period of time that is set by the state in which it was issued, typically three years. During this time period, should the drivers coverage lapse or be cancelled, it will be reported to the DMV and the driver will be required to file another SR-22.
Having an SR-22 on record can greatly increase the cost of your auto insurance. This is because those that are considered high-risk due to their past driving record or other factors can be seen as more of a liability to insure than other drivers. It is important to know how the SR-22 filing will affect your premium and discuss this with your insurer before signing the documents.
If you are required to file an SR-22 due to multiple violations or driving-related issues, you may also want to look into ways to take proactive steps to improve your driving record: enroll in a defensive driving course, limit the number of miles driven, or avoid driving in high-risk areas.
There are some other ways to reduce or minimize the SR-22 filing fee as well, such as taking advantage of certain discounts such as multi-car or multi-policy discounts, safe driver discounts, or bundling your coverage with other insurers. The amount of the discount will vary depending on your insurance provider and your eligibility for the discount.
Though having an SR-22 may now seem overwhelming, know that there are steps that can be taken to reduce or eliminate the high costs associated with this filing. Take time to research the available options and compare premium quotes from multiple providers to find one that best suits your needs and budget.
In addition to researching and comparing rates between insurance providers, it is important to ensure that the coverage you are purchasing meets your states minimum requirement and is tailored to fit your unique needs. Understanding what coverage options are available, how they will affect your premium, and how your coverage values are determined will go a long way in helping you make an informed decision when it comes to selecting a policy with an SR-22 filing.
Another way to ensure you are obtaining the right coverage for your needs is to be aware of any restrictions the policy may entail. Your insurer should provide you with the list of the restrictions the policy will have, so take the time to make sure you understand what they are before agreeing to the policy terms.
In addition to understanding the restrictions associated with your policy, it is also important to know how to properly maintain the coverage. Generally, this entails paying your premium on time and providing proof of insurance to the DMV. If you miss a payment or do not submit proof of insurance or payment to the DMV, your policy could be cancelled and you may need to refile your SR-22.
Finally, it is important to be aware of the time frame your SR-22 must remain on file. If you fail to meet the criteria for filing the SR-22 for the duration required, your policy may be cancelled and you will be required to start over with a new filing.
Now that you understand more about what an SR-22 Certificate is and how it affects your auto insurance, here are some more topics you may want to consider in further detail:
What Are the Different Types of SR-22s?
Depending on the state your are located in, the type of SR-22 required may differ. It is important to know the different types of SR-22 filings and the difference between them.
What Insurance Companies Provide SR-22 Coverage?
Not all insurance providers offer SR-22 coverage so it is important to research and compare quotes from multiple sources in order to find one that is willing to provide you with coverage.
What Can I Do To Minimize the Cost of an SR-22?
If you are required to file an SR-22 due to your driving history, there are some alternative options available to help make coverage more affordable.
What Safety Measures Can I Take To Improve My Driving Record?
Though filing an SR-22 may seem daunting, understanding the importance of good driving habits and taking proactive steps to improve your record can greatly reduce the risk of incidents happening that could lead to a cancellation of a policy or need for filing.
What Happens If I Fail To Maintain My SR-22 Coverage?
Failing to maintain your SR-22 coverage can have serious consequences that could result in the loss of your license and privileges to drive. Understanding potential repercussions helps to ensure that your coverage remains active and compliant.