What is high risk insurance or non-standard insurance? Many people have a less-than-perfect driving record and have had to file insurance claims due to accidents or other driving violations. Insurance companies categorize individuals with numerous violations or car insurance claims as high risk. Drivers in this category stand a greater chance of filing claims in the future.
Being required to purchase SR22 high-risk insurance means filing an SR22 certificate with the state. SR22 is a certificate of financial responsibility that serves as a monitoring device between the policyholder’s insurance company and the state. It guarantees that the driver maintains auto insurance without interruption for a specific time.
Who may need high-risk insurance?
- Insurance companies consider a driver high risk for various reasons, such as repeated moving violations, accidents, and driving without insurance.
- Convictions for driving under the influence of alcohol or other drugs require SR22 DUI insurance. (Note: Florida and Virginia require drivers to file an FR44 certificate rather than an SR22 for alcohol or drug-related offenses.)
- Teenage drivers are more likely than older drivers to require high-risk insurance, even those with a previously clean driving record. Due to their age and lack of driving experience, young drivers have more accidents and traffic violations than older drivers with more experience behind the wheel.
- A driver with a suspended or revoked license must purchase an SR22 auto insurance policy for reinstatement.
The downside of needing SR22 or FR44 insurance
Drivers with multiple violations exceeding the points on their driving record no longer qualify for preferred insurance rates in most cases. If a driver has numerous speeding tickets, statistically, it’s only a matter of time before they have additional tickets or cause an accident. As a result, insurance companies penalize them with a higher insurance rate. On the other hand, insurance companies reward people with an excellent driving record with lower premiums. The likelihood of these drivers having to file a claim is much lower.
Insurance companies that insure a few high-risk drivers tend to charge much higher rates to drivers in this category. They often drop these drivers, which requires them to obtain an SR22 or FR44 policy from a high-risk insurance provider. While this type of auto insurance is usually more costly than standard auto insurance, the rate may be less than a standard auto insurance provider can offer.
If you require SR22 insurance, UltraCar Insurance protects you with cost-effective SR22 and FR44 insurance policies. Start a quote using our online form, or call us today for a quick, affordable quote with no certificate filing fees!
