Insurance is one of the most significant topics in the automotive world. Naturally, most people are looking for the best cheap car insurance. However, others have different requirements and may need high risk car insurance. This is where SR-22 insurance comes into play. So, what is it, and who needs SR-22 car insurance?
What is SR-22 car insurance?
There’s quite a bit of confusion surrounding the topic of the SR-22. The first misunderstanding is that it’s a type of car insurance. However, this is not the case, as an SR-22 is a certificate of financial responsibility. Essentially, it’s a form that has to be filed along with your car insurance. People who need to have an SR-22 on file typically need to have high-risk car insurance.
Readers should note that there is a fee to file an SR-22. Though not expensive, it is an extra expense. The good thing is that the fee typically covers the duration of time the SR-22 form is needed. Regarding the price of the insurance policy, it differs. However, according to Wallet Hub, it can be around 12% more expensive than for people who don’t need an SR-22 on file. Drivers typically need the form for about three years.
It’s also important to point out that letting your car insurance lapse when you have the form on file can have drastic consequences. Of course, the Office of Motor Vehicles will be notified, and you may not be able to drive for a specified amount of time.
Reasons someone may need it
There are several reasons why a driver may need an SR-22 certification. Naturally, many of them are related to car insurance and failure to maintain an active policy. However, it could also be required for reasons such as falsifying insurance documents or unsatisfied legal judgments. People may also need it if they are convicted of various felonies.
The SR-22 is not to be confused with the FR-44. Though both forms show financial responsibility, they serve different purposes. The FR-44 is for drivers with DUIs or who were impaired in some other way. Repeat offenders may also have an FR-44.
The process of dealing with an SR-22 is straightforward. The driver pays a fee and picks an appropriate insurance policy. Unfortunately, this often rules out most cheap car insurance policies. Luckily, the form is temporary. This means most drivers can return to a regular policy once they satisfy all the requirements.
