New to the Insurance World? Well, there are a few things you need to be aware of.
And out of those, one of the most important things is SR-22 insurance. But what is SR-22 insurance? Why do we need SR-22? What is the cost of SR-22 insurance, and most importantly, How to get SR-22 insurance?
SR-22 is usually an underrated Insurance term that most of us are unaware of. But instead, it is an important document that we all must have. Also, different states have different rules regarding SR-22.
So SR-22 insurance in New York will vary from SR-22 Insurance in Florida. Read the article to learn all the essential details about SR-22 and why do you need to have an SR-22
What is SR-22?
SR-22 is an official State document filled with your State to make a statement that you have the car insurance that meets the authorized minimum coverage requirements given by the Law. It is called by different names like:
- SR-22 Bond
- SR-22 Insurance
- SR-22 Form
- DR-44 ( in Virginia & Florida)
- Certificate of Financial Responsibility
SR-22 is not an actual form of insurance, but it is linked to the Insurance niche because it is an official certificate of Financial responsibility required by the State or Law in certain situations.
In simpler terms, the SR-22 document serves as proof that your current Car Insurance meets all the standard requirements set by the government under Minimum Liability Auto Coverage.
Why do you need an SR-22?
Before moving on with why do you need SR–22? Keep in mind that not every driver needs an SR-22.
Different states have different rules. And even if you have an SR-22 Insurance form, the document might never come into use. It is mostly ordered by Law/court or State at the time of requirement.
But there are certain situations when having an SR-22 becomes an important aspect. Let’s take a look at these situations and learn why do we need to have an SR-22.
- An at-fault accident by uninsured drivers
- DUI convictions
- DWI convictions
- Caught for Reckless driving
- Serious and repeat traffic offenses
- Driving while intoxicated
- License suspension/ revocation
- Repeat offenses and Violations
- Not paying court-ordered child support
- Applying for a Hardship License
Therefore, there is a chance you never have to use your SR-22 Insurance document. Forex, if you drive less than 25 miles a day and follow all the driving regulations, you might never get an order to show your SR-22 form.
How Much Does an SR-22 Document Cost?
Usually, an SR-22 Document costs $25 to file. But the rates may vary depending on the State and the Insurance company. Some companies initially ask for the form fee, while others include it in the policy conditions.
Let’s look at the basic fee structure of the SR-22 document.
- The State charges a Flat Fee. Some states also add a surcharge
- One time Fees while filing an SR-22/FR-44 Document
- An Individual filing fee. ( added filing fee for additional members like Sprouse.)
- Extended Fee if Policy Lapses.
Will an SR-22 Increase the Cost of My Insurance?
Yes, SR-22 sometimes increases the cost of insurance. Due to the fact that some insurance companies consider SR-22 drivers at high-risk stakes, they tend to increase the insurance value.
However, the increase will be directly proportional to your ZIP code, insurance history, past records, and some other essential factors like the model of the car you drive: the average insurance cost for a Ford F150 will be vastly different from that of a Toyota Corolla, even when you have SR-22.
How Long is SR-22 Valid?
To know when is your SR-22 expiring, contact your State’s department of motor vehicles. From there, you will get the exact idea of how long your SR-22 will be applicable.
PS: In most states, the set Sr-22 expiry date is after 3 years.
How to Get an SR-22 Insurance?
There are different ways by which you can get your hands on the SR-22 form.
By Insurance Company. If you already have an active Insurance plan, contact your Insurance company for SR-22 documentation.
Fill out a form, and they will carry on with the process. By this, an SR-22 endorsement will be added to your existing policy, and you can easily file your SR-22 Insurance document by the State.
By New Policy. If your Insurers don’t offer SR-22 documentation, or you don’t have an insurance plan, then you need to file for a New Insurance Policy. Fill out the New Policy and ask for the endorsement of SR-22.
- Start an Insurance policy by obtaining a free car insurance quote.
- Under policy terms- Say YES to “Need a Certificate of Financial Responsibility or SR-22?”.
- Fill out the SR-22 form as per the requirement.
Your SR-22 documentation will be completed, and you will receive your Sr-22 Insurance Form.
How to Get an SR-22 in a State you Don’t Live in?
Sometimes you want an SR-22 from a different state. This is common, especially in cases when you are visiting or living in another state. Caught under violation, you may need to show your SR-22 document.
In such cases, either contact your insurance company or apply to online SR-22 provider websites. Depending on your requirement, they can easily file your SR-22 anytime and anywhere.
What is FR-44?
FR-44 stands for the same purpose as SR-22, but FR-44 as a term is only used in Virginia and Florida. Usually, it is used interchangeably with SR-22 except with the slight variation- liability limits are typically double the State’s minimum.