What is SR22 insurance? You may have never heard of the term unless circumstances lead to your having a suspended driver’s license. SR-22 is also called AAMVA Uniform Financial Responsibility Form. It’s a document that an insurance provider, licensed in your state, submits to the DMV to reinstate your license.
NOTE: Florida and Virginia require an SR22 certificate for non-alcohol or drug-related violations and another type of certificate (FR44) for DUI/DWI violations.
What does SR22 insurance do?
Every state requires licensed drivers with a registered vehicle to carry liability insurance. These auto insurance policies must have a minimum amount of coverage for bodily injury and property damage. Why does your state require liability insurance? It’s so every driver is responsible for injury or property damage if they cause an accident. That is the principle of financial responsibility.
After a license suspension, the state wants a guarantee that the high-risk driver will have liability coverage in exchange for license reinstatement. That guarantee, or proof of financial responsibility, is what SR22 insurance provides.
Don’t let your SR22 policy lapse
In most cases, your state will require you to keep SR22 insurance in force for 1-3 years after license reinstatement. The insurance underwriter monitors your SR22 insurance policy. If the policy lapses, they immediately submit an SR26 form to the state DMV, and that results in repeat suspension of your license.
Owner and Non-Owner SR22 Insurance
There are two types of SR22 insurance for license reinstatement.
People who own a registered vehicle require an owner/owner-operator policy. You can even get SR22 motorcycle insurance in most states.
What happens if you sell your car during your SR22 requirement? A common misconception is that you can stop making payments on your SR22 policy if you sell your vehicle. But this is not true. You still have to maintain SR22 insurance until the state no longer requires it. Therefore, to comply with your SR22 requirement, contact your insurance provider to convert to a Non Owner SR22 policy before selling your car.
Non Owner SR22
Can you buy SR22 insurance without a vehicle? Yes! If you don’t own a car, you’ll need a non owner policy with an SR22 endorsement.
Reasons for SR22 insurance
Several circumstances can lead to your having to carry high-risk insurance.
Driving without insurance is one of the most common reasons for license suspension. It not only puts you and your passengers at risk, but it also puts other people at risk. Besides getting a ticket for this, you can end up with a license suspension. You’ll have a probationary suspension period between 30 to 90 days, assuming no additional violations occurred. So it’s crucial to make sure your auto insurance is always current.
What if you don’t own a car? If you’re driving a borrowed vehicle and an officer pulls you over, you can get a ticket if the owner doesn’t carry insurance. Before driving anyone’s car, always verify two questions: 1. Do you have auto insurance? 2. Is there a valid insurance ID card in the glove compartment?
- Court-ordered child support or other legal judgment
- Accumulating too many points (tickets) on your driving record
- A DUI or DWI conviction
- Driving without a license or with a suspended license
- Uninsured at-fault accident
Can I cancel my SR22 insurance if I move to another state?
If your state requires you to carry SR22 insurance and you move to another state, don’t stop making your payments. Even if you move, your SR22 requirement remains in effect. Other states honor this insurance requirement of your state. Before moving out of state, contact your agent with your new address to stay in compliance with your SR22 requirement.
Call UltraCar Insurance for answers to what is SR22 insurance. Our agents are licensed in 34 states and specialize in providing SR22 filings to individuals and business owners. Contact us for a no-obligation consultation or click the quote button to get started!