SR22 Auto Insurance: What Type of Driver Needs It

Chances are good that, if you have heard of an SR22, it’s because you or someone you know has been required to have one filed. The process involved is not quite as complicated as it may seem. But it is important that you follow procedure, in order to stay in good standing in the eyes of your state.

How SR22 Auto Insurance Works

In a nutshell, SR22 is a reporting system that enables the state to keep tabs on whether or not you have auto insurance. Here’s how it works: when you obtain a policy through an insurance company, they inform the state. The company will let the correct department know that you have adequate coverage and are doing what you are supposed to, by being insured. They normally file the forms for this procedure electronically.

If you are someone who thinks they will go get insurance, have the company fax the form, and then you will just cancel the policy and go about your business, you have the wrong idea. It doesn’t work like that. In addition to letting the state know you have started a policy, the company will also keep them informed as to whether or not you are maintaining it. As soon as you cancel the policy, they are required to turn in that information, so that the state knows you have done so.

If you keep up with your insurance policy, you should have nothing to worry about. Most people who are required to have this type of policy do so for a probationary period, usually for one to three years.

Who Needs SR22 Auto Insurance?

If you have been required to purchase this type of policy, you may have a pretty good idea of who needs it, based on why you had to have it. But there might be more involved to it than that. While it is something that not everyone is required to carry, there are millions of people who are.

Those who are required to have an SR22 policy usually have an undesirable driving history, such as repeat violations, traffic tickets, having had their license suspended, or receiving a DWI or DUI. Some states, such as Pennsylvania, Kentucky, Delaware, Oklahoma, and New Mexico, do not require such policies. But if you are required to obtain an SR22 policy while in another state, and then you move to that state, you will still need to have it for the time period that was set forth.

Finding Competitive Rates

Those who have to purchase an SR22 plan are seen as higher-risk drivers. Because of this, you should be prepared to pay premium rates that are more than what you may be used to. In order to find competitive rates that are within your budget, do some comparison shopping and ask the insurance company what you can do to lower your rate.