SR22 Insurance Proves Financial Responsibility

SR22 Insurance Proves Financial Responsibility

SR22 Insurance is a misleading name due to the fact SR22 forms do not provide insurance but only demonstrate to state officials that auto insurance is in place and will remain so for a specified number of years. SR22 forms are required of anyone who has had a license suspended in many states and wants to have it reinstated.

Insurers Issue Forms

Insurers issue the forms to state licensing officials so people who have had their licenses suspended can get the reinstated and drive legally once again. There are a lot of ways people can lose their driving privileges across the United States. The biggest is to be convicted of drunk driving or reckless driving, which automatically results in the loss of driving privileges aside from going to and from work in some cases. In others, no driving is allowed at all for a period of time, such as six months to a year.

But when those driving privileges are restored, the problem of finding affordable car insurance becomes a daunting challenge. High risk drivers automatically are excluded from many of the primary auto insurance companies in the United States. Some firms offer high risk plans for motorists, but those plans typically are very expensive due to the collective high risk of insuring bad drivers. Those risks are not covered by traditionally more affordable and standard auto insurance plans. But pooling those risks among other high-risk auto insurance plans makes it easier for some insurance companies to provide insurance plans for high risk drivers, such as SR22 insurance plans.

Assures State Officials Insurance Is In Place

An SR22 form assures state officials that the driver has suitable insurance coverage and intends to maintain it for a period of time. If the auto coverage should lapse, the driver could find his or her license suspended for a period of time until either the period expires or suitable insurance coverage is obtained. While not actually an insurance plan, the form indicates to state officials that insurance is in place and will remain so for a specified period of time, such as the next six months or year.

Essentially, the form is a promise to maintain car insurance coverage to drive legally on public roads and protect the assets and well being of others. High risk insurance usually only provides liability coverage within state mandated limits and primarily protects others. Any passengers who might be injured in an accident or victims in other vehicles who might be injured would be compensated up to policy limits for their injuries and cost of medical treatment.

Helps Restore Trust, Driving Privileges

If someone has had a drivers license suspended due to driving under the influence and that person winds up in another accident after getting his or her license back from the state, any damages inflicted on other people’s property would be covered up to policy limits. And the SR22 form helps affirm to state officials the pledge of having and maintaining suitable levels of auto insurance coverage until more traditional plans can be had.

It takes time for high risk drivers to establish their trustworthiness to insurers and state officials – sometimes years. And the right form will help ensure the driver will abide by state laws until that time comes.