What is SR-22 Insurance?

Posted on January 20, 2025 by Hoang Nguyen

If you’ve been told you need SR-22 insurance, you might be feeling overwhelmed or confused about what that entails. SR-22 insurance isn’t a type of insurance policy but a certificate proving you carry the minimum required auto insurance. This document, often referred to as an SR-22 form, is typically required by state authorities for individuals who have been deemed high-risk drivers. 

 

In this guide, we’ll delve into everything you need to know about SR-22 insurance, from its purpose to its cost, and how to eventually remove it.

Understanding SR-22 Forms

Defining SR-22 Forms

An SR-22 form is a certificate of financial responsibility filed with the Department of Motor Vehicles (DMV) by your insurance provider. It verifies that you carry at least the state-mandated minimum car insurance coverage. While often referred to as “SR-22 insurance,” it’s not a standalone policy but an add-on to your existing or new auto insurance plan. If you don’t own a car, you can still meet the requirement by purchasing non-owner car insurance, which provides liability coverage when driving a vehicle you don’t own.

Why Are They Required?

SR-22 forms are required for individuals considered high-risk drivers due to past driving violations. The form ensures that these drivers maintain continuous insurance coverage, as any lapse in coverage is reported to the DMV. This helps protect other drivers on the road and ensures accountability.

Common Reasons for Requiring an SR-22

Certain driving infractions may lead to a state requiring you to file an SR-22. These include:

DUI Convictions

Driving under the influence (DUI) is one of the most common reasons for requiring an SR-22. DUIs signal reckless behavior, prompting authorities to enforce stricter insurance requirements.

Multiple Traffic Violations

A history of multiple traffic violations within a short period can flag you as a high-risk driver. These violations can include speeding tickets, running red lights, or reckless driving citations.

At-Fault Accidents

Being at fault in one or more significant accidents, especially if you were uninsured at the time, often results in an SR-22 requirement. Even if you drive a business vehicle, ensuring you have appropriate car insurance for business vehicles is crucial to avoid complications.

How SR-22 Insurance Works

Image URL: auto insurance document

Image name: auto-insurance-document

Filing an SR-22 with the DMV

When you need an SR-22, your insurance company files the form on your behalf with the DMV. This filing officially notifies the state that you have the required insurance coverage. You’ll usually be notified by the court or DMV of your obligation to file an SR-22.

Continuous Insurance Requirement

One critical aspect of SR-22 insurance is the need to maintain continuous coverage. If your policy lapses or is canceled, your insurance provider is required to notify the DMV, which could result in license suspension or additional penalties. For drivers without a car, maintaining a non-owner insurance policy ensures compliance without the need for a traditional auto policy.

Proof of Financial Responsibility

The SR-22 serves as proof that you’re financially responsible and capable of covering damages in the event of an accident. This is a crucial step toward regaining your driving privileges.

The Cost of SR-22 Insurance

Factors Affecting the Cost

While the SR-22 filing fee itself is typically inexpensive, ranging from $15 to $50, the real cost comes from higher insurance premiums. Factors influencing these premiums include:

 

  • The severity of your driving violations.

 

  • Your age, driving history, and location.

 

  • The type of vehicle you drive.

 

High-risk drivers often face increased premiums due to their driving record. Additionally, drivers who require SR-22 filings for uninsured car violations may see particularly high rates.

Tips for Reducing Costs

Reducing the cost of SR-22 insurance is possible with strategic actions:

 

  • Shop Around: Compare quotes from multiple insurance providers to find the best rate.

 

  • Take a Defensive Driving Course: Completing an approved driving course may lower your premiums.

 

  • Maintain a Clean Record: Avoid any further violations to gradually reduce your risk profile.

 

  • Opt for Basic Coverage: Meeting the state’s minimum requirements can keep costs lower.

Removing an SR-22

Duration of the SR-22 Requirement

The length of time you’ll need an SR-22 depends on your state and the nature of your violation. Typically, SR-22 requirements last between two and five years. During this period, you must maintain continuous insurance coverage.

Steps to Remove the SR-22

Once you’ve fulfilled the SR-22 obligation period, you can take steps to remove it:

 

  • Verify Eligibility: Contact the DMV to confirm that you’ve met the requirements.

 

  • Notify Your Insurance Provider: Inform your insurance company that you no longer need the SR-22 filing.

 

  • Request Policy Adjustments: Discuss adjusting your insurance policy to reflect standard coverage and rates.

 

Get Your Insurance

Navigating the world of SR-22 insurance can be challenging, but understanding the process and requirements is essential for regaining your driving privileges and financial independence. Whether you’re facing an SR-22 requirement or preparing to remove one, staying informed and proactive will ensure a smoother experience.

 

Active Insurance is here to guide you through the insurance world. Contact us today!