How Does SR 22 Work In Auto Insurance?

SR 22 Insurance is a simple way to prove financial responsibility to those who want proof of insurance. Since auto insurance is required for all vehicles, those without it may find themselves in legal trouble. As a result of the legal trouble, you may be required to carry an SR 22 for a certain period of time, usually two to three years, depending on the offense. The SR 22 is a document the insurance company files to show the state that you have financial responsibility and insurance. Not all insurance companies will file the document, so when you are ready to purchase car insurance, make sure the company you are choosing will send an SR 22.

What if you don't have a car?

An SR 22 is required to prove insurance coverage and financial responsibility even if you do not have a car of your own. For people who do not have cars of their own but are required to carry insurance, there is a non-owner's policy offered by some insurance companies. These policies only cover damage to another vehicle if the driver is at fault for the accident and does not cover any damage to the vehicle being driven. This kind of policy typically costs about 10% less than an auto insurance policy with a vehicle.

What if you move to another state?

If you move to another state, the law requires that you still have an SR 22 on file with the state you are moving from. For most situations, this is fine, but because there are some states that do not require an SR 22 to be filed, it can be difficult to move to or from those states while maintaining the SR 22 because many companies will not file the form for out-of-state residents, especially if you are moving to New York or North Carolina. If you move to a state that does not require the form and will not file one for your former state you do have the option to appeal. It is important that you maintain the coverage requirements of the original state whether or not the insurance requirements are different in the new state you move to.

What states don't require the SR 22?

The following states do not require an SR 22 form to be filed, if you move from one of these states to another you are fine, but if you move from another state to one of these states, you may have a bit of trouble keeping an SR 22 on file.

  • New York,
  • North Carolina,
  • Oklahoma,
  • Pennsylvania,
  • Minnesota,
  • Kentucky,
  • And Delaware.

Don't Cancel or Stop Paying the Policy

An insurance company lets the Division of Motor Vehicles know that the policy was canceled or lapsed within 15 days. This will result in a revocation of the vehicle's tag, possibly even your license, depending on state law. Carry insurance the full period of time you are required to have the SR 22 to keep things simple.

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