So you’ve been asked by the court to file an SR-22 form to prove you have car insurance — what now? If you’ve never had to file a certificate of financial responsibility before, you may be confused about how it works with your regular policy. If you’re wondering, “Do I need SR-22 insurance and regular insurance?”, it’s important to learn the basics of signing up for insurance with an SR-22. By comparing standard insurance plans to policy options for SR-22s, you can find the right option for you and start looking for affordable SR-22 insurance quotes.
What Is SR-22 Insurance?
An SR-22 is not insurance; instead, it’s a certificate of financial responsibility, a form you file to verify you have at least the minimum liability insurance required by law in your state. If the state determines that you’re a high-risk driver based on your driving history or legal issues, they may require you to submit this document for a certain length of time in order to keep your driving privileges.
Although it’s not actually a specific type of policy, people often use the term “SR-22 insurance” to refer to plans that comply with your state’s minimum liability requirements, allowing you to file the certificate of financial responsibility with your state and retain your license. Once you sign up for your policy and inform your insurer that you need to file an SR-22 form, they’ll confirm your policy with the court or Department of Motor Vehicles.
The Typical Reasons for Requiring an SR-22
SR-22s mainly apply to people who have been convicted of driving-related charges, such as DUIs or reckless driving. In most states, the court will require you to prove you have active coverage in order to get your license back after your charge. Other reasons you might need to submit proof of coverage to the courts include:
- Driving without an active car insurance policy
- Driving without a license or with a suspended license
- Having an extensive history of car accidents
- Not paying child support
What It Is and Why You Need Regular Auto Insurance
Even if you aren’t in legal trouble, you still need to have regular car coverage in most states. You simply have fewer restrictions than drivers with SR-22s.
Definition of Regular Auto Insurance
Regular auto insurance policies give you coverage for your vehicle in different situations depending on the type of coverage you purchase. The most basic level is liability coverage, which only pays for damages you cause to other people or vehicles if you cause an accident. The highest level is typically full coverage, which will also reimburse you for your own damages, even if you were at fault. You can also get add-ons like comprehensive coverage, which will help you pay for damage that isn’t related to a collision, like dents from hail.
Legal Requirements for Auto Insurance
Most U.S. states legally require you to have a certain amount of liability insurance to cover medical expenses and property damage. The policy minimums can vary by state, so you might need to get more coverage if you move. There are only two states that don’t require any form of car insurance for the average driver — New Hampshire and Virginia.
The Difference Between Regular Auto Insurance and SR-22 Insurance
So, what’s the difference between standard auto plans and SR-22 coverage? Ultimately, SR-22 coverage gives you the same protection as a regular auto plan. But even though the actual policies are virtually the same, you will notice some differences.
Purpose of Regular Auto Policies vs. SR-22 Certificate
Regular auto plans give you a bit more freedom as a driver. It’s designed to protect you financially, and you won’t get your license taken away if your coverage lapses as long as you stay off the road until you restart your policy.
Coverage Differences Between Regular Auto Policies and SR-22
In most cases, any policy meeting your state’s minimum legal requirements can count as an SR-22 policy. Many drivers who have to file a certificate of financial responsibility choose the lowest minimum liability plan because it’s more affordable, but you can also file an SR-22 if you have full coverage. Check SR-22 requirements by state to find the minimum policy limits in your area.
Policy Costs: Regular Insurance Premiums Versus SR-22 Fees
If you have to file a certificate of responsibility because of a DUI or other charge, you’re considered a high-risk driver. That means your policy is probably going to cost much more during your SR-22 requirement period. You’ll also have to deal with the fees and fines associated with your conviction.
Restrictions and Limitations: SR-22 Holders Versus Regular Policyholders
Some insurers choose not to insure drivers who need SR-22 coverage. It’s important to look for carriers that work with high-risk drivers to find a plan. If you were convicted of a DUI, you may also need to install an ignition interlock device to start driving again.
Impact on Rates and Coverage
On average, getting a DUI and being required to file a certificate of financial responsibility will cause your insurance rates to increase to double or even triple what you were paying before. In most cases, your rates may decrease after you finish your SR-22 period, which usually lasts a few years. However, they might not go down to the same level they were before your DUI.
Navigating Insurance Policies With an SR-22
Now that you’ve been required to file a certificate of financial responsibility, what should you do about your coverage?
Do You Need Both SR-22 and Standard Car Policies?
Because an SR-22 is just a form you file, it doesn’t replace your regular plan. Just reach out to your insurer to ensure your plan complies with minimum requirements and confirm that they can file the form on your behalf. Some insurers do not handle drivers with SR-22 requirements, so you may need to find one that does.
Get Your SR-22 Insurance Today
A certificate of financial responsibility is just a form, so it doesn’t replace your regular policy. However, you may see some changes in your rates after getting a DUI or another driving-related charge. If the court has required you to file the certificate, you’ll need to communicate with your insurer to determine if your current policy will work with your SR-22 and explore eligible options.
SR-22 Adviser specializes in coverage for high-risk drivers, so they can guide you through every step of filing an SR-22. Get your free online quote from our partner site to get started.