What is an SR-22?
An SR-22 is also known as financial responsibility proof and is basically a form that is provided under the auto insurance laws of your state by your car insurance carrier to your local DMV or Department of Motor Vehicles. This form essentially gives details of the state of your vehicle insurance. Effectively, it informs the DMV that the insurance company that you purchased your policy from and continually pay premiums to, has your policy up to date and that your coverage is still valid or otherwise.
This is essentially to assist the local DMV keep track of your car insurance status at any time. However, if your policy lapses or you decide to cancel your policy or sell your car without informing them, it is the lawful duty of the car insurance company to inform the DMV of this new development and meet the requirements. If your policy is valid, then you are afforded all driving privileges. An SR-22 policy could last up to a period of 3 years depending on the state you reside in. When you cancel your policy or it lapses, then auto insurance laws suspend your license until you get another SR-22 policy active. You will have to pay a fee to the DMV for the same.
Why do I need an SR-22?
Basically, an SR-22 filing form provides enough proof that you have a valid auto insurance policy with a licensed auto insurance company, after you get involved in a car accident and you have not met the minimum liability insurance requirements of your respective state or you have been cited for driving under the influence. Your license is suspended until such a time that you provide proof that you have met the minimum liability insurance requirements by showing financial responsibility. This is only achieved via an SR-22 in which case, your license will be reinstated. If a DUI is involved, then in most states, you are required to, in addition to the SR-22 proof, enter into a DUI program and pass.
How much will this cost me?
An SR-22 can be obtained easily and does not cost much in most states. The cost ranges between $15 and $40, a fee payable only once. The real cost come in the cost of car insurance premium it is entrenched in. you cannot put an exact cost to an SR-22 because premiums for different policies vary and separating one from the other is not possible and so, if the premiums you are paying are at $100 a month, you may subtract the fee to get the actual amount but you cannot pay for it alone – you will have to pay for the full $100. There are other costs that are involved e.g. in California, you have to pay a license reinstatement fee of $55 in addition to fees to join a DUI program if that was your original violation.
Avoid these fines and penalties by adhering to the law and get cheap car insurance. You may want to check out our site so you can compare car insurance quotes from affordable insurance companies and get the right policy. Enter your zip code in the space we have provided at the start of the page to get started.