If you have been notified by the insurance company or Department of Motor Vehicles that you need to have SR22 insurance coverage, you may be wondering what it is and why you need it. SR22 is not actually insurance. It is a certificate that is attached to your current insurance policy. It is required when you have been deemed to be a “high-risk” driver. It is used as proof that the driver has the required insurance should he or she be responsible for any damage or injury caused while driving. Here is some information that will help you better understand this certificate.
“High-Risk”
There are two records that will determine whether you are a high-risk driver or not. The first one is your driving record. If you have been convicted of major traffic violations, such as a DUI or have enough moving violations to warrant your license being suspended, you may be required to purchase an SR22 certificate. The other record considered is your insurance record. If you have had a lapse of insurance coverage or did not pay your share of a judgement after being involved in an accident, an SR22 may be required.
Maintaining Coverage
If you need to have an SR22 certificate, the most important thing for you to do is to maintain your insurance coverage at all times. If you allow it to drop, the insurance company will inform the DMV, and it is likely that your driving privileges will be suspended. Most states require you have the certificate for three years. If you let your insurance coverage lapse by even one day, the three-year requirement may be started over. For this reason, when you are required to have an SR22, be sure to discuss it fully with the insurance company. You would not want to have to start over again because you stopped your insurance policy the day before turning in your license plates and canceling the registration, meaning there was a lapse in coverage.
Needing an SR22 certificate added to your insurance policy is not a big deal. While it will add a bit to the cost of your insurance, it is not expensive. You will pay much more in fines and fees if your insurance lapses. Understand how long you must maintain the certificate, and be sure to ask for one if you switch insurance companies. In most cases, if you can avoid any more traffic violations, once the time requirement has been met, your driving record will have improved so the cost of your insurance will go down.
“High-Risk”
There are two records that will determine whether you are a high-risk driver or not. The first one is your driving record. If you have been convicted of major traffic violations, such as a DUI or have enough moving violations to warrant your license being suspended, you may be required to purchase an SR22 certificate. The other record considered is your insurance record. If you have had a lapse of insurance coverage or did not pay your share of a judgement after being involved in an accident, an SR22 may be required.
Maintaining Coverage
If you need to have an SR22 certificate, the most important thing for you to do is to maintain your insurance coverage at all times. If you allow it to drop, the insurance company will inform the DMV, and it is likely that your driving privileges will be suspended. Most states require you have the certificate for three years. If you let your insurance coverage lapse by even one day, the three-year requirement may be started over. For this reason, when you are required to have an SR22, be sure to discuss it fully with the insurance company. You would not want to have to start over again because you stopped your insurance policy the day before turning in your license plates and canceling the registration, meaning there was a lapse in coverage.
Needing an SR22 certificate added to your insurance policy is not a big deal. While it will add a bit to the cost of your insurance, it is not expensive. You will pay much more in fines and fees if your insurance lapses. Understand how long you must maintain the certificate, and be sure to ask for one if you switch insurance companies. In most cases, if you can avoid any more traffic violations, once the time requirement has been met, your driving record will have improved so the cost of your insurance will go down.
No comments:
Post a Comment