5 Myths Surrounding SR-22 Insurance


If you are a habitual traffic offender, get a DUI or otherwise present a high-risk as a driver, you may very well have to obtain SR22 car insurance. SR22 insurance is not actually an insurance policy, but rather, a document that is filed with the Department of Motor Vehicles that shows you do have car insurance.

There are many misconceptions about what SR22 auto insurance is and what it is not. You may see television commercials promising cheap SR22 insurance and they can be misleading. Following are 5 myths surrounding SR22 car insurance that simply are not true.

1. SR22 insurance replaces auto insurance

Many people believe that SR22 insurance is auto insurance. It is not. An SR22 is an endorsement on an automobile insurance policy. It is official notification to the Department of Motor Vehicles that you are acting in a financially responsible way by having a current auto insurance policy that meets the minimum insurance guidelines for your state.

2. Finding affordable SR22 insurance is nearly impossible

While it is true that most people who are required to carry SR22 auto insurance have committed certain violations and acts that make them a high-risk, that does not necessarily mean that you will have to pay a fortune for car insurance.

Because you are in a high-risk group and not a preferred group, your insurance costs will be higher. However, there are many insurance companies that focus on insuring drivers with poor driving records. If you shop around, you can usually find some affordable SR22 insurance.

In addition, the amount and type of auto insurance you are required to carry by law does not change. If you cut back to the state mandatory liability minimums, you could get basic coverage at a reasonable rate.

3. You do not need to get an SR22 form from your insurance company

Some people believe that they can go out and get an SR22 form from one insurance company and then buy their insurance from another. That is against the law because you can not have insurance on the same car from two companies at the same time.

If you have SR22 car insurance from one carrier and then decide to go with another insurance company, you can not just bring along your SR22 document and use it to get new insurance. The company that issues you auto insurance must also be the company that files the SR22 document.

4. You have to make monthly payments.

This is blatantly false. There is a small one-time fee for filing an SR22 form. You may want to make monthly payments on your auto policy, but that has nothing to do with the fact that you needed an SR22.

5. An SR22 insurance policy protects you from losing your driving privileges

People get confused by thinking that since you may need an SR22 to reinstate your driving privileges, that once you have it, you can not lose your driving privileges. If you commit serious violations while you have SR22 auto insurance, the Department of Motor Vehicles can still suspend or revoke your driver’s license.

While having to get SR22 insurance is never a good thing, it is not forever. If you find yourself in such a situation where you need this endorsement, you can still find cheap SR22 insurance. If you straighten up your act, maintain an excellent driving record and pay your auto insurance premiums on time, in a few years, you will probably be able to get auto insurance without needing an SR 22 form.

Written by Steve Whiley, a blogger in the auto industry and a writer for American Auto Insurance.

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