SR22 insurance is financial responsibility insurance that a motorist can be required to carry after a driver’s license suspension or revocation. Motorists who have had their licenses suspended or revoked due to vehicular accidents, speeding or driving under the influence often find it very difficult to obtain regular auto coverage when their licenses are reinstated. SR22 fills the need for these drivers so that they do not drive uninsured.

Who Sets Requirements for SR22 Insurance?

The requirements for SR22 insurance are set by the individual states. This insurance provides the minimum amount of coverage that a motorist is required to carry to drive in a given state. SR22 insurance is required regardless of whether the motorist owns a car. The SR22 is a certificate of insurance issued by the insurance company and filed with the respective state authority overseeing motor vehicle operation.

Types of SR22 Certificates

The SR22 certificate may take one of three forms, depending on the motorist’s situation:

  • An operator's (or non-owner's) certificate covers a reinstated motorist who operates a vehicle she does not own.
  • An owner’s certificate is issued to a driver who owns the vehicle he operates.
  • An operator-owner SR22 certificate is issued to a motorist who operates her own vehicle and a vehicle owned by another party.

What SR22 Insurance Covers

An SR22 will typically cover property damage and any liability arising from an accident in which the reinstated motorist is involved. It is referred to as financial responsibility insurance because it covers the motorist’s liability to others who may be involved in an accident. SR22 will not necessarily cover the repair or replacement value of the owner’s car but that of the car involved the accident. This changes in the case of a no-fault accident or one in which the reinstated motorist was not at fault.

Who Sells SR22 Insurance?

SR22 insurance policies are sold through insurance companies approved by the state. The state sets requirements for how long the SR22 must be maintained and holds on to the master policy. If the motorist fails to maintain the SR22 coverage for the entire coverage period, this may result in suspension of the motorist’s driver’s license until such time that the coverage is reinstated.

The Cost of SR22 Insurance

SR22 insurance is more expensive than comparable non-SR22 insurance. It is possible to locate relatively less expensive SR22 insurance coverage, but any policy that a motorist is required to buy to meet a state’s requirement is still going to be fairly expensive. All companies that sell SR22 insurance have to be approved by the state, and their policies must meet the minimum coverage levels. Motorists are wise to shop around for the best possible price.

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