Who Needs SR-22 Insurance and What Does It Cost?

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Almost every person these days is aware of insurance.

Usually, we hear this term from insurance companies offering people numerous reimbursement policies against their losses. But here we are talking about insurance, which is not a typical type of Insurance, SR-22.

In this article, you will come across the facts you must know about SR-22.

SR-22 in One Go

SR-22 Insurance is an acronym of Safety Responsibility, which is in general a certificate of Financial Responsibility (CFR) prepared and filed by certain insurance companies with the Department of Motor Vehicles (DMV). Other terms used for SR insurance are:

  • Certificate of Financial Responsibility
  • SR-22 Certificate
  • SR-22 Bond

This certificate of financial responsibility endorses your capacity to meet the state’s minimum obligations for covering your liability. For instance, a person meets an accident because you incurred property damages or confronted any injuries. 

Who Needs SR-22 Insurance? 

A Certificate of financial responsibility or an SR-22 Certificate guarantees the state that a driver has adequate indemnification coverage. 

The SR-22 Certificate is not obligatory for all drivers. Particularly, this certificate is mandatory for the ones identified as high-risk drivers for reasons as follows:

  • Driving under Influence (DUI) or Driving while drunk (DWI) conviction
  • Driving without a license or with a suspended one
  • Reckless driving
  • Plenty of accidents records
  • Constantly violating traffic regulations

Above are some of the numerous reasons why a person needs to be enlisted in SR-22. In any of those cases, a person entails presenting an SR-22 to get driving rights restored or, in certain cases, also to get a new license as well. Check out these other facts you might not know about insurance.

How to Get a Certificate of Financial Responsibility?

How to Get a Certificate of Financial Responsibility

No rocket science is involved. It’s simple. As long as you are eligible to get an SR-22 Certificate means you have auto insurance. Just give a call to your anticipated insurance company and let them do the rest for you. But what if one doesn’t have it? No worries, you still have a chance to get your car insurance first and then ask your insurer for the rest of the process.

It’s obligatory to get an SR-22 Certificate in some states if you don’t own a car.

The Cost Incurred in Getting the SR-22 Certificate

It’s a one-time cost yours anticipate insurer will ask for filing with DMV, which is typically not as expensive as people usually think of. It usually costs you between $15 to $25, totally up to your state policies and on your insurer as well. Sometimes, you need to pay an extra amount in the shape of a surcharge asked by your insurance company.

Does the Cost Remain the Same for Every Case?

No, not particularly. If you notice any rise in your auto insurance rates, this increase is most likely associated with so forth problems assembled in the SR-22.

Let’s suppose you are constantly violating traffic regulations, causing too many accidents that harm others’ property or causing them injuries. You are also continuously capturing drunk while driving or without having a valid driving license. In that case, you will pay a lot more for your auto insurance apart from the SR-22 insurance cost.

But on the contrary, if your SR-22 is not linked to driving violence, your SR-22 will not impact your auto insurance rates as much as it does in the first case. It might be a slight rise that you will notice in your car insurance rates. For example, if you were ordered by the court to file an SR-22 because you failed to pay child support, this is the case where you have some leverage in the rise in your auto insurance rates. 

Impacts of SR-22 on Annual Auto Insurance Rates 

As already being discussed in the last section, it would not be assumed wrong to consider a huge rise in the annual auto insurance rates of high-risk drivers, which could be up to 85 to 127 percent, according to some survey reports.

In short, the average cost of SR-22 Insurance is totally up to the reasons behind why your license was suspended or canceled.

The Monthly Cost of SR-22 Insurance

Though the one-time filing cost of SR-22 with your state is comparatively low, it doesn’t mean your monthly cost will also remain the same.

We already noted a huge difference in annual auto insurance rates of high-risk drivers compared to low-risk drivers. Thus, it’s clear the monthly insurance rate will also be high for those associated with high risk, which could go up to $600+.

Obligatory Tenure for SR-22

It varies from state to state requirement that some states mandate drivers to keep an SR-22 for three years, but it is not mandatory for all states, which means the desired term of keeping an SR-22 can be from one to five years.

This tenure tends to increase if you don’t restrain from committing further driving convictions in the entitled course. Moreover, after some serious warnings, some states mandate it for the whole course of life of that convict.

PS: If your car insurance expires between the tenure of SR-22, make sure your insurer must notify your state’s DMV about this other. It is considered serious violence, which may lead to suspension of your license until you renew your auto insurance once again. 

How To Get Rid of SR-22?

Once you spend your Sr-22 tenure adequately without further convictions, your status will be automatically cleared.   

A Brief Wrap Up

SR-22 insurance is entirely different from the typical types of insurances as it covers your financial liability incurred in an accident in which another’s personal property damage or injury is reported.

SR-22 Insurance is not in any way held accountable for repairing or reimbursing the cost of an owner’s or other person’s damaged property embraced an accident.

Therefore, it’s also recognized as a Certificate of Financial Responsibility (CFR) specially introduced for the high-risk drivers with very nominal fees, which varies from the rate of risks associated with the convictions. 

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John Miller

John Miller is a cars enthusiast who loves writing anything related to automobiles. He is a passionate blogger writing for innovatecar.com and other auto blogs