What Exactly Is SR-22 Insurance?

If you’ve been involved in certain driving violations or incidents, you may have heard the term “SR-22 insurance.” Despite its name, an SR-22 is not actually an insurance policy. It’s a certificate of financial responsibility your insurance company files with the state to verify you have the minimum required auto insurance coverage.

When Is an SR-22 Required?

An SR-22 is typically required after serious driving offenses. These generally include the following:

• DUIs or DWIs

• Accumulating multiple traffic violations in a short period

• Driving without insurance

• Being involved in at-fault accidents while uninsured

• Having your license suspended or revoked

Each state has different requirements, but these violations are commonly what trigger the need for an SR-22. The form serves as proof to the state you’re maintaining the mandatory liability insurance coverage, allowing you to keep or reinstate your driving privileges that might otherwise be lost due to your driving history.

How Does an SR-22 Work?

Once you’re required to have an SR-22, notify your insurance company so they can file the appropriate form with your state’s DMV or equivalent agency. You’ll typically pay a one-time filing fee that varies by insurer and state.

Most states require continuous coverage for approximately three years, although this period can be longer depending on your violation and location. If your insurance lapses or is canceled during this time, your insurer must notify the state immediately, which could result in license suspension and further complications.

What Are the Financial Implications?

Having an SR-22 requirement often means higher insurance premiums. This increase isn’t because of the SR-22 filing itself, but because you’re now considered a high-risk driver. Insurance rates for drivers with an SR-22 can be significantly higher than standard rates, so it can be beneficial to shop around for favorable rates.

Learn More

Contact T1 Insurance LLP today to discuss your SR-22 requirements. Our agents can help you get the proper coverage while meeting your legal obligations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.