After you receive an SR-22, car insurance companies may view you as a high-risk driver, and this can affect the premium you pay for your auto policy.
Insurers determine your premium by considering various factors, such as your driving record, age, gender, location, type of vehicle, and whether or not you have held a policy previously or if you are a new driver.
In this guide, you will learn how insurers calculate your new premium and how to take steps to reduce your payments.
What Is an SR-22 Requirement?
An SR-22 functions as a certificate of financial responsibility that some states require for drivers who have previously received certain driving violations, such as driving under the influence (DUI) or driving without insurance.
When your insurer submits an SR-22 form, it indicates to the state that you have the necessary insurance coverage to drive legally. Not all states have an SR-22 requirement, however.
What Ratings Factors Do Insurers Use to Calculate Your Premium?
Insurers consider a variety of factors when calculating the premium for your auto policy. Regardless of SR-22 status, auto insurers will usually look at the following data points when making a premium decision:
- Length of driving history.
- History of tickets and accidents.
- DUI charges – particularly relevant for SR-22 holders.
- Make and model of your vehicle.
- The specifics of the coverage you have selected.
- Average miles driven during the year.
- Demographic data including gender, marital status, and education level.
Insurers feed all these values into an algorithm known as an actuarial model, which then produces a single number: Your premium payment. Discounts you qualify for are typically included in this number.
An SR-22 requirement usually indicates that you have previously received a DUI or otherwise need to prove to the state government that you have an active auto policy. This fact indirectly will increase your premium, particularly in the case of DUIs.
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Do All Insurers Offer SR-22-Compliant Policies?
You should note that not all companies offer SR-22 support, and those that do may charge higher premiums. To find the best coverage and rates for your situation, you will want to work with an experienced agent.
How Long Do DUIs Stay on My Record?
The length of time a DUI (driving under the influence) conviction stays on your record can vary depending on where you live.
In general, a DUI conviction can stay on your driving record for up to 10 years, although the exact duration can vary by state. However, auto policy providers typically look back only a certain number of years when determining your rates, and this varies by company.
For example, some insurers may look back five years when determining rates, while others may look back as far as 10 years. Additionally, some insurance companies may consider a DUI conviction a more serious offense than others, which can also have a bearing on how much it affects your rates.
How You Can Avoid Overpaying for Auto Insurance
An experienced, independent insurance agent can help you pick the best auto policy for your needs. Other common ways to avoid overpaying for auto insurance include:
- Increase your deductible: By choosing a higher deductible, you can lower your monthly premium. Just make sure you can afford the deductible in case of an accident.
- Bundle your policies: Many insurers offer discounts for bundling your auto insurance with other policies, such as homeowners or renters insurance.
- Maintain a good driving record: Avoiding accidents and traffic violations can help keep your policy rates low.
- Consider the type of car you drive: The cost of insurance can vary depending on the make and model of your car. Sports cars and luxury vehicles, for example, can be more expensive to insure.
- Ask about discounts: Many companies offer discounts for things like safe driving, low mileage, and anti-theft devices. Be sure to ask your insurer about any available discounts.
Get an Affordable SR-22 Insurance Quote Today
To maximize your savings, get an SR-22 insurance quote today from our partner. An independent insurance agent will help you make the right policy decision for your needs.