Small Business Brief

Safety & Loss Prevention

The Ultimate Guide to SR22 Auto Insurance

If you’ve heard of the term SR22, we’re guessing that your driving record is less than stellar. 

As if auto insurance isn’t a big enough hassle, you’ve been told you need an SR22. Do you know what it is? Do you know how to get one? Maybe you’ll just sell your car and forget the whole thing?

As a high-risk driver, you might be required to have SR22 auto insurance.

If you find yourself in that predicament, you’ll want to learn all you can about SR22 auto insurance, obtaining an SR22 certificate, and how much it’s going to end up costing you. Keep reading to find out.

SR22 Auto Insurance

The fact that you need an SR22 means that you are going to pay more for your auto insurance than you would otherwise. Not what you want to hear, right? We’ll break down what it all means.

What Is an SR22?

An SR22 is a certificate that you may be required to file because of a poor driving record. It states that you are financially responsible for carrying at least state-required car insurance coverage. 

The insurance company makes a guarantee that you are financially responsible for any accidents that you may incur and that you are keeping up with and maintain your insurance coverage. The insurance company will notify the state if you fall behind on payments or coverage. 

When Would You Need an SR22?

If you have been involved with or committed any of the following, you may need SR22 insurance. This requirement doesn’t last forever. If you keep a clean driving record, it will be removed in 1-5 years.

Here’s why you’d need an SR22:

  • DUI, DWI or other violation involving alcohol
  • Convicted of reckless or negligent driving
  • Committed several traffic offenses, for example, speeding, within a short period of time
  • Caught and convicted of driving without insurance 
  • Been involved in an accident while driving without insurance
  • To get a hardship or probationary license 
  • To reinstate a driver’s license after it has been suspended or revoked 

How Do You Get an SR22? 

You will be notified by your state DMV or by a court order if you need an SR22. 

You will obtain an SR22 from your insurance company. In some cases, however, your insurance company may not be willing to insure you any longer and therefore will not issue you an SR22. 

Under such circumstances, you’ll have to shop around for an insurance company that will issue the certificate and carries your auto insurance. 

The insurance company will then file the SR22 on your behalf. You may not file it yourself. 

How Much Does SR22 Auto Insurance Cost?

The cost of filing the SR22 and the cost of your insurance are two separate things. The cost varies depending on where you live. Generally, the cost to file is somewhere around $25. 

That is a one-time fee as long as you maintain your insurance coverage. 

The cost of the auto insurance will depend on your driving record. Be prepared to pay increased rates because of your high-risk driver status. 

The Bottom Line

If you are in need of SR22 auto insurance, you may need to “tighten your belt” for a few years to afford the increase car insurance rates. You may even want to consider buying a less expensive car to lower your rates.

Visit us for advice on this and many other topics.