Does SR22 Insurance Cost More and Why Does It?

An SR22 is a certificate of financial responsibility, not an insurance policy itself, mandated by states for certain driving offenses. It serves as proof that a driver has at least the state’s minimum liability insurance coverage. Often required after serious violations, the SR22 ensures that individuals can financially compensate others if they cause an accident.

SR22 and Insurance Premiums

SR22 requirements lead to higher auto insurance premiums. This increase is not due to the SR22 form itself, but the underlying reason that necessitated the SR22. An SR22 is required for drivers considered high-risk, often following violations such as driving under the influence, reckless driving, or causing an accident while uninsured.

Insurance companies assess risk to determine policy prices. A history of serious driving infractions signals an elevated risk of future claims. Drivers who need an SR22 are classified as high-risk, which results in significantly higher premiums, as the SR22 signals a history of violations.

Factors Affecting SR22 Insurance Costs

Several variables influence the amount a driver with an SR22 requirement will pay for insurance. The severity and type of offense that triggered the SR22 is a primary factor; a DUI conviction, for example, results in a more substantial rate increase than minor infractions. Your overall driving record, including past accidents or violations, also plays a significant role in determining premiums.

Geographic location is another important consideration, as rates can vary significantly by state and even by zip code. The type of vehicle being insured, including its features, can also impact costs, with newer or more expensive vehicles generally having higher premiums. The specific coverage limits and deductibles chosen for the policy will also affect the price, where higher coverage limits and lower deductibles lead to increased costs.

Different insurance providers have varying risk assessments and pricing models for high-risk drivers, so shopping around can yield different quotes. Demographic factors such as age and gender can influence rates, with younger drivers and males sometimes facing higher premiums due to statistical risk assessments. In states where it is permissible, a driver’s credit history can also affect premiums, with a lower credit score potentially contributing to higher insurance costs.

Obtaining SR22 Certification

Obtaining an SR22 certificate begins when a driver is mandated by a court or state motor vehicle department to file one. The SR22 is filed on their behalf by an insurance company. Drivers provide their chosen insurer with details of the court order or state notification, along with their driver’s license number.

Not all insurance providers offer SR22 filings, so drivers must find a company that accommodates high-risk drivers. Once an insurer is found, they electronically file the SR22 form with the state’s Department of Motor Vehicles (DMV) or equivalent agency. There is a one-time filing fee for the SR22, which ranges from $15 to $50. This filing allows the driver to reinstate their driving privileges.

Maintaining SR22 Compliance

Maintaining SR22 compliance involves continuous adherence to specific requirements for a set period. The SR22 requirement lasts for two to five years, with three years being a common period, depending on the state and the nature of the offense. During this compliance period, the driver must maintain continuous automobile insurance coverage that meets the state’s minimum liability requirements.

A lapse in required insurance coverage during the SR22 compliance period can have consequences. If coverage lapses, the insurance company notifies the state’s DMV that the driver no longer meets financial responsibility requirements. This can result in license suspension, additional fines, or an extension of the SR22 requirement. Once the compliance period is completed, the SR22 requirement is lifted.