What Is SR-22 Insurance and How Does it Work?

What Is SR-22 Insurance and How Does it Work?

Last Updated on March 1, 2023 by

Do you need to get SR-22 insurance for your state department vehicle? SR-22 insurance is a certificate of responsibility – in terms of finance – for your car. 

Your new auto insurance policy must have coverage and limits that meet the SR-22 minimum requirements in some circumstances.

The policy must include at least the minimum liability coverage required by your state. Your state recognizes that you have mandatory minimum liability insurance.   

Here’s everything you need to know about understanding insurance and insurance requirements.

Driving Violations 

If you have received a driving violation, such as drunk driving or uninsured driving, your state may require you to obtain an SR-22 form to prove that you meet the minimum auto insurance requirements.

Update your car insurance, as some states require SR-22 if you get pulled over and don’t have valid insurance. When coverage is in effect, the insurance company will send insurance form SR-22 to your state highway authority. Insurers specializing in high-risk driver insurance typically offer an SR-22 claim.   

This allows the state to make sure that you keep your coverage for a specified period of time. With SR-22, insurance companies assure your state’s automobile or insurance department that you will keep coverage for a certain period of time.

Notify Your State If Your License Is Suspended 

If your insurance expires while you have an SR-22, your company must notify the state, and your license will be suspended. Conditions and requirements vary by state, but you must keep your SR-22 and insurance policy for about three years. 

If you cancel your policy, it expires, or the insurance company cancels it, you must notify your state department of motor vehicles. If your insurance is subject to significant changes or cancellations, your insurance company will notify the state.   

At the end of the application period, ask your insurance company to end the SR-22 policy.

SR-22 Requirements For Your Insurance Company 

Once the DMV in your state, e.g., California, has confirmed that you have met the SR-22 requirements, please get in touch with your insurance company to let them know that an SR-22 is no longer required. Your state or court system will let you know if you need to file an SR-22.

If your license is suspended, your insurance company may be required to file an SR-22 on your behalf before the state refiles it. In some states, you may be required to show an SR-22 even if you don’t have a car or before the state reinstates your driver’s license if your license has been suspended.

If so, you must obtain SR-22 non-owner insurance to meet the SR-22 storage requirements.   
Only some insurance companies provide coverage for drivers who require SR-22 coverage, so check with your current provider to see if they can file the form on your behalf. If a court or state requires you to file an SR-22 or FR-44, your insurance company will file it for you.

Your insurance company will complete the paperwork and submit it to the state.   

By completing this form, the insurance company guarantees to the state that you retain coverage and that you are financially responsible for any accidents and will notify the state if it fails.   

Maintain Proper Insurance Coverage 

After completing the form, you must maintain proper insurance coverage for the duration of the government authorization. The state usually requires this deposit over several years to ensure your insurance is in good shape at all times.

If your current insurance company does not offer it and you need to purchase coverage, you must purchase a new policy.

But you should know that many major carriers are SR-22 insurers, which means they will provide you with a policy and file forms with the state or entity on your behalf.   

Filling Out Forms

There are several forms of auto insurance to choose from, ranging from liability, full coverage, and collision insurance, but you may not have heard of SR-22 auto insurance until now.

However, SR-22 insurance policies are still generally more expensive than regular auto insurance, especially if an SR-22 certification is required due to previous driving violations such as drunk driving or repeated traffic violations.
However, SR-22 insurance also covers people driving without insurance, with a suspended or revoked license, or with multiple traffic violations within a short period of time.

Time Lengths 

In Oregon, people driving are generally required to have SR-22 insurance for three years, although this time period may be extended if driving violations are committed during that time.

If the state of Oregon requires you to have SR-22 coverage and you travel out of state, you must still file an SR-22 form in Oregon before obtaining a driver’s license in another state.

You may be required to issue an SR-22 if you have been convicted of driving under the influence, have not insured your vehicle, or have been in too many accidents.   

State Liability Coverage Requirements 

You usually receive a court order requiring you to obtain instant SR22 insurance due to a driving violation. In this situation, you should work with the state to obtain permission to provide certified documentation instead of SR-22 that your auto policy does meet the requirements.

Texas is a great example. Drivers should file an SR-22 with the state’s insurance department if their driver’s license were suspended due to a car accident, a conviction for lack of liability insurance, or a civil conviction. 

Understanding Insurance Requirements

Understanding insurance requirements is very important. If you don’t understand them, then you can’t hope to abide by the laws in your state for car insurance.

You could be in trouble with the police or facing a hefty fine. So be sure to get on top of the different insurance types and if you need SR-22.

A Quick Overview

What is SR-22 Insurance?

SR-22 insurance is not actually insurance at all but rather a document that proves you have valid car insurance. It is also known as a certificate of financial responsibility. You may be required to file an SR-22 form with your state’s department of motor vehicles (DMV) if you have been convicted of certain driving offenses, such as DUI or driving without insurance. SR-22 insurance is typically required for a period of three years.

How Does SR-22 Insurance Work?

When you are required to file an SR-22 form, your insurance company must submit it to the DMV on your behalf. The form shows that you have purchased the minimum amount of liability insurance required by your state. The insurance company will also notify the DMV if your insurance policy is canceled for any reason when you are required to have SR-22 insurance. If your policy is canceled, your SR-22 status will also be canceled, which could result in a license suspension.

Why Do You Need SR-22 Insurance?

You may be required to have SR-22 insurance for a variety of reasons, including:

  • DUI or DWI conviction
  • Multiple traffic violations or accidents
  • Driving without insurance
  • License suspension or revocation
  • Reinstating a suspended or revoked license

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