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What is SR-22 Auto Insurance, and Why Might You (or Your Employees) Need It?

You may receive a temporary suspension if you get too many violations on your driving license. It will be completely revoked if you are convicted of a significant driving infraction.

However, there are things you can do to get your driving license reinstated after a suspension or revocation. Getting your license reinstated can still be quite challenging to get insurance for your vehicle. You will need an SR-22 to be able to drive again.

What Is SR-22 Auto Insurance?

An SR-22 refers to a document you file with your state to prove that you can meet your state’s minimum auto liability insurance requirements. Though it may be referred to as insurance, it is technically not a form of insurance.

When you sign an SR-22 form, your insurance provider is essentially guaranteeing the state that you will be financially responsible for any accidents in which you were at fault, and you have the coverage to do so.

An SR-22 requirement can last from one to five years. Getting an SR-22 will affect your insurance cost and could almost double what you would otherwise pay for insurance. You could permanently lose your driving license and car registration if you drive your car without an SR-22 when the state requires it.

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Why Might You Need SR-22 Insurance?

The following are situations when you might need SR-22 insurance:

Driving Without A License

If you are caught by the authorities driving without a license, you will be mandated by the state to get an SR-22. However, the penalty might vary depending on your state of residence.

Multiple Driving Infractions

Your driving history significantly impacts whether the authorities will allow you to drive in the future. If you have multiple driving infractions on your record, the state will require you to get an SR-22 since you are considered a high-risk driver. These violations may include speeding tickets, at-fault accidents, and driving an unroadworthy vehicle.

DUI or Similar Conviction

If you are convicted of driving under the influence of alcohol or any other drug, you will be required to get an SR-22 in addition to the consequences you will face for the conviction.

Driving Without A License

If you do not have the appropriate level of insurance, you may still be able to drive as long as you have an SR-22. The same goes if you are caught driving without a license but can drive after your license suspension or revocation is overturned.

How to Get SR-22 Insurance

When you buy an insurance policy, you can get an SR-22 from your insurance provider. If you already had an insurance policy when you got the driving infraction that led to the SR-22, you may ask your insurance provider to add it to your current policy.

Your insurance provider could drop your policy or raise your premiums due to the SR-22. It is a good idea to shop around for the best and cheapest SR-22 to ensure you don’t overpay for the insurance. You may have to switch to a more affordable option even if your current insurance provider accepts adding the SR-22 to your existing policy.

The Cost of An SR-22

You have to pay to get an SR-22, even if it is added to your original auto insurance policy. It will be expensive as the driving violations that require you to get an SR-22 will significantly increase your auto insurance rates.

The increase in your insurance premiums will depend on the crime. For example, the price hike for a DUI will be different from that of an accident.

Every car owner and driver should know what an SR-22 is and how to get one. The above are some details about SR-22 insurance, including its cost and who needs it. Consult an insurance provider to find out more.

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