What Happens If I Cancel My SR22 Insurance?
Learn the full implications of discontinuing your SR22 insurance early, including driving privilege changes and future obligations.
SR-22 insurance is not a traditional insurance policy but rather a certificate of financial responsibility. It serves as official proof that a driver maintains the minimum liability insurance coverage required by their state. This certification is typically mandated for individuals who have committed serious traffic violations, such as driving under the influence (DUI), reckless driving, or accumulating multiple traffic offenses within a short period. Drivers involved in accidents without insurance or those with a history of not carrying required auto insurance may also need an SR-22. The primary purpose of an SR-22 is to assure the state that a high-risk driver will maintain continuous insurance coverage for a specified duration.
Notification and License Suspension
When an SR-22 insurance policy is canceled or lapses, the insurance provider is obligated to notify the state’s Department of Motor Vehicles (DMV) or equivalent agency. This notification is made through an electronic filing, Form SR-26. The SR-26 informs the state that the driver no longer meets the financial responsibility requirements.
Upon receiving the SR-26 notification, the state suspends the driver’s license. Vehicle registration may also be suspended. This ensures individuals required to maintain an SR-22 do not operate a vehicle without proof of financial responsibility.
Financial and Legal Consequences
SR-22 cancellation and license suspension trigger several financial and legal repercussions. Driving with a suspended license can result in substantial fines, ranging from hundreds to over a thousand dollars for a first offense, with significantly higher penalties for subsequent offenses. Vehicle impoundment is common, leading to towing and storage costs.
Beyond monetary penalties, individuals face increased insurance premiums. The SR-22 requirement and license suspension mark a driver as high-risk, often leading to average premium increases of nearly $1,000 annually. More severe legal penalties include misdemeanor charges for driving with a suspended license. Depending on jurisdiction and prior offenses, these charges can lead to court appearances, probation, and jail time, ranging from days to months, or even years for repeat offenses.
Steps to Restore Driving Privileges
Restoring driving privileges after a suspension due to SR-22 cancellation involves a defined set of actions. The first step requires obtaining a new SR-22 policy from an authorized insurer. Not all insurance companies offer SR-22 filings, so it may be necessary to find a new provider. Once active, the insurer must electronically file the SR-22 form with the state’s DMV, confirming financial responsibility.
Alongside securing new SR-22 coverage, individuals must generally pay any outstanding reinstatement fees to the state. These fees can vary, but are commonly in the range of $75 to $250 or more. Depending on the original offense or suspension duration, additional requirements might include retaking driving tests or completing driver education courses. These steps are necessary to lift the suspension and re-establish legal driving status.
Understanding Your SR-22 Obligation Period
An SR-22 requirement is not permanent; its duration is strictly defined. The obligation period is mandated by court order or state law, often two to five years. For instance, many states commonly require continuous SR-22 coverage for three years. The start date of this period can vary, sometimes beginning from the date of conviction, the license suspension date, or the date the license is reinstated.
It is important to confirm the specific end date of the SR-22 obligation by reviewing court documents, contacting the state’s DMV, or consulting your insurer. Maintaining continuous SR-22 coverage until the entire obligation period has officially ended and been confirmed by the state is crucial. Canceling the SR-22 prematurely will trigger the consequences discussed previously, potentially restarting the entire requirement period and incurring new penalties.