The Difference Between SR-22 And Regular Auto Insurance

​Navigating the world of auto insurance can be confusing, especially when you encounter terms like SR-22 and regular auto insurance. Understanding the differences between these two types of insurance is crucial for drivers who need to comply with state requirements and maintain proper coverage. This article will clarify what SR-22 insurance is, how it differs from regular auto insurance, and why you might need it.

What is SR-22 Insurance?
SR-22 insurance is not actually a type of insurance, but rather a certificate of financial responsibility. It is a document provided by your insurance company that proves you have the minimum required auto insurance coverage mandated by your state. The SR-22 certificate is filed with your state's Department of Motor Vehicles (DMV) to demonstrate that you are maintaining the required coverage.

When is SR-22 Insurance Required?
SR-22 insurance is typically required for drivers who have been deemed high-risk by the state. Common situations that may require an SR-22 include:

• DUI or DWI Convictions: Driving under the influence of alcohol or drugs often leads to a requirement for SR-22 insurance.
• Serious Traffic Violations: Major offenses such as reckless driving can result in the need for an SR-22.
• At-Fault Accidents Without Insurance: If you cause an accident while uninsured, you may need to file an SR-22.
• License Suspension or Revocation: Reinstating a suspended or revoked license often requires proof of financial responsibility through an SR-22.
• Repeated Traffic Offenses: Accumulating multiple traffic violations in a short period can lead to an SR-22 requirement.

How SR-22 Insurance Differs from Regular Auto Insurance
1. Purpose

• Regular Auto Insurance: Provides coverage for liability, collision, comprehensive, medical payments, and other protections based on the policy you choose. Its primary purpose is to protect you financially in case of accidents, theft, or other incidents.
• SR-22 Insurance: Acts as a certification of financial responsibility to the state, proving you have the minimum required liability coverage. It does not provide additional coverage but ensures you comply with state regulations.

2. Requirement

• Regular Auto Insurance: Required for all drivers to legally operate a vehicle on public roads. Each state has its own minimum coverage requirements.
• SR-22 Insurance: Required for high-risk drivers as determined by the state due to serious traffic violations, DUIs, or other infractions. It is an additional requirement on top of regular auto insurance.

3. Cost

• Regular Auto Insurance: The cost varies based on factors like driving record, vehicle type, coverage limits, and the driver's age and location.
• SR-22 Insurance: Typically more expensive than regular insurance due to the high-risk status of the driver. Insurance companies may charge higher premiums for drivers requiring an SR-22. Additionally, there is usually a filing fee for the SR-22 certificate.

4. Duration

• Regular Auto Insurance: As long as you own and drive a vehicle, you need to maintain continuous coverage.
• SR-22 Insurance: Required for a specific period, usually 3 years, as mandated by the state. If you cancel or lapse your policy during this time, your insurer must notify the state, which can lead to further penalties or license suspension.

5. Filing Process

• Regular Auto Insurance: Purchasing a policy involves selecting coverage options and paying premiums. There is no need for additional documentation beyond the insurance card.
• SR-22 Insurance: Requires your insurer to file the SR-22 form with the DMV or relevant state authority. This filing is in addition to issuing your insurance policy.

Steps to Obtain SR-22 Insurance
If you are required to file an SR-22, follow these steps:

• Contact Your Insurance Company: Inform your insurer that you need an SR-22 certificate. Not all insurers offer SR-22 filings, so you may need to find a company that does.
• Purchase a Policy: Obtain the necessary auto insurance policy that meets your state's minimum coverage requirements.
• Pay the Filing Fee: There is usually a fee for filing the SR-22 certificate with the state.
• Maintain Continuous Coverage: Ensure that your policy does not lapse during the required period. Any lapse in coverage can result in severe penalties.

Maintaining proper auto insurance coverage is crucial for all drivers. For those required to file an SR-22, understanding the differences and implications can help ensure compliance with state laws and avoid further legal issues. Regular auto insurance protects you financially from various risks on the road, while SR-22 insurance specifically addresses the state's requirement for proof of financial responsibility. Both are essential for legal and responsible driving.

Conclusion
Understanding the distinction between SR-22 and regular auto insurance is vital for drivers, especially those classified as high-risk. While regular auto insurance provides the necessary coverage for everyday driving, SR-22 insurance acts as a certification to the state that you meet the required liability coverage. By recognizing the requirements, costs, and duration associated with SR-22 insurance, you can ensure compliance and maintain your driving privileges. Always consult with your insurance provider to determine the best coverage options for your specific situation and stay informed about your state's regulations.

At Elite Insurance Services, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you. Learn more about our products and services by calling our agency at (719) 302-1110. You can also request a free quote by CLICKING HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​