Buying insurance is usually straightforward when you have a good driving record. You can choose any insurance provider and get whatever policy and rate you want, within your budget. But things can be more complicated if you have a poor driving record. Let’s look at 4 types of insurance for license reinstatement.
Insurance companies want to minimize risk when insuring drivers. So they reduce their risk by charging higher insurance premiums. Some insurers don’t offer high-risk insurance because of the greater chance they’ll have to pay claims. Statistics show that the average annual full coverage premium for drivers with a clean driving record is approximately $1500. However, a single traffic violation like a speeding ticket can cause a substantial rise in the premium.
How Traffic Violations Affect Insurance Premiums
Here is a comparison of the minimum insurance coverage requirements for SR22 and FR44 insurance in Florida:
So the minimum coverage required for FR44 insurance is 10 times higher for bodily injury per person, 15 times higher for bodily injury per accident, and 5 times higher for property damage than for SR22 insurance.
See how some common traffic violations can affect your insurance premiums:
According to the National Highway Traffic Safety Administration (NHTSA), speeding causes one-third of all crash-related deaths in the United States. Speeding is a leading cause of death in the U.S., and insurance companies charge significantly higher rates to drivers with speeding tickets – with premiums as much as 23 percent higher.
Being Responsible for an Accident
Causing an accident also results in your insurance premiums rising significantly. Generally, drivers responsible for an accident see their insurance premiums spike by 38 percent.
Getting a DUI or DWI Conviction
A DUI or DWI conviction is arguably the most severe and potentially devastating traffic violation. NHTSA research shows that approximately 28 people lose their lives in drunk-driving crashes every day. Driving drunk is destructive because you put not only your life but other lives at risk. As a result of this risk, insurance companies charge drivers with DUI or DWI convictions much higher premiums.
The Consequences of Traffic Violations
Having multiple traffic violations can have a detrimental impact on insurance premiums. Insurance companies view drivers with traffic violations as high-risk drivers and are less inclined to insure them. Repeated traffic violations can also pose significant challenges to drivers. For instance, each state has laws concerning points on your driver’s record. Getting a certain number of points on your driving record within a particular time can cause the state to suspend your license.
Each point on your record increases your auto insurance by a specific amount. Florida, for instance, allots three to six points for traffic violations, depending on the severity. Speeding usually adds 3 points to your record, while reckless driving costs you 4 points. On the other hand, leaving the scene of an accident will add 6 points to your record. In addition, a high number of points designates you as a habitual offender.
More importantly, getting 12 points or more within twelve months results in the Florida Department of Highway Safety and Motor Vehicles suspending your license for thirty days. Likewise, accumulating 18 points within 18 months results in a license suspension of three months. Drivers who get 24 points within 36 months will lose their license for at least a year.
A license suspension can cause significant problems for a driver. The U.S. has been a car-centric society since cities developed after the industrial revolution. Statistics from the American Public Transportation Authority show that 45 percent of Americans don’t have access to public transportation. As a result, losing your driving privileges has quite a stressful effect on day-to-day life.
It becomes pretty expensive to take a cab or hire a chauffeur. In addition, people can’t expect family members or friends to drive them where they need to go frequently. Thus, losing your driving privileges will also have broader implications on your social and professional life.
Types of Insurance Certifications for License Reinstatement
Because of the burdens license suspension presents, most drivers seek ways to regain their driving privileges. License reinstatement is possible but requires you to jump through some hoops. Here are the various insurance certifications available for license reinstatement. They include:
Many people often confuse SR-22 insurance with auto insurance. SR-22 insurance is not an insurance policy. Instead, it’s a financial responsibility form that indicates you meet your state’s minimum auto insurance requirements. This form is an endorsement to an auto or non-owner insurance policy. Drivers must obtain SR-22 insurance for license reinstatement after a non-DUI-related suspension.
The SR-22 is a high-risk insurance certificate you file with your state’s DMV. Your insurance provider attaches it to your auto insurance policy, showing you have the necessary auto insurance mandated by the state. States generally require high-risk drivers to carry SR-22 insurance certification for one to three years without lapse. Some of the reasons states require drivers to get SR-22 insurance include:
- Driving without a valid license
- Accumulating excessive points on your record
- Driving without insurance coverage
- Driving with a suspended license
- Having a DUI or DWI conviction
Some states also allow courts to require you to file for SR-22 insurance if you’ve missed child support payments.
It’s worth noting that states have different regulations for SR-22 insurance. Most states require SR-22 insurance certification following license suspension for any reason, such as speeding, causing an accident, or a DUI conviction. Florida and Virginia have adopted the FR-44 certification only for DUI and DWI convictions.
FR-44 insurance exists only in Florida and Virginia. Virginia introduced the FR-44 certification in 2008, and Florida adopted it soon after. Drivers must obtain the FR-44 insurance certification following a DUI or DWI violation. Like the SR-22, the FR-44 is also a financial responsibility form.
It’s worth noting that minimum liability coverage requirements are much higher for FR-44 insurance than SR-22, particularly in Florida. Florida’s minimum coverage requirements for the FR-44 are $300,000 for bodily injury per accident, $100,000 for bodily injury per person, and $50,000 for property damage per accident.
Typical reasons people require FR-44 insurance in Florida include:
- Refusing to allow a breathalyzer or Blood Alcohol Concentration (BAC) test
- Driving a vehicle while under the influence of drugs or alcohol
- Causing bodily harm, injury, or death to another person while driving an automobile
Non-Owner SR-22 Insurance
Non-owner SR-22 insurance helps drivers who don’t own a vehicle obtain license reinstatement. You’ll need non-owner SR-22 insurance f you drive a borrowed car on an occasional basis. There are specific limitations to non-owner insurance coverage.
Non-Owner FR-44 Insurance
Non Owner FR-44 Insurance Florida performs the same license reinstatement function as non-owner SR22 insurance. However, it’s for drivers with a DUI conviction who don’t own a car. It provides liability-only coverage if you drive a borrowed vehicle.
Reinstate Your License With SR-22 or FR-44 Insurance from UltraCar Insurance
Are you searching for SR-22 or FR-44 insurance in Florida? UltraCar Insurance has you covered. We’re a leading SR-22 provider in 34 states and offer FR-44 insurance in Florida and Virginia. In addition, we sell non-owner FR-44 insurance and non-owner SR-22 insurance. Visit our website to learn more. Alternatively, start an online quote with us today!
This article was last updated on March 1st, 2023 by UltraCar Insurance