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Auto Insurance Laws: The Importance Of The Certificate Of Financial Responsibility

As required by Auto Insurance Law, each driver on the road must have an auto insurance cover before driving on the road. In special circumstances, one may have to take up a Certificate of Financial Responsibility cover so as to drive. This cover is meant to show that the driver has the minimum liability insurance cover in the event of an accident. One such cover is the SR-22 insurance policy which has different requirements depending on the state that one is in. It is slightly different from conventional auto insurance but it is usually pegged on the minimum liability insurance requirements of each state.

The SR-22 insurance policy covers physical injury per individual, physical injury per accident and damage to property. This minimum liability policy is meant to cover the damage to persons or property by the driver who is at fault. Any physical or vehicle damage to himself or herself is up to the driver to foot it from their own pocket. There are mainly three kinds of SR-22 insurance policies; these are motor cycle, car, and non-owner insurance policies. The non-owner cover is meant for persons who are driving vehicles that are not registered under their own names. The car could be rented, borrowed, registered under a business name or a commercial vehicle. The car and motor cycle insurance policies are for persons who are driving their own vehicles.

The SR-22 cover is usually taken up when it is demanded of by the court. This in essence means it usually comes up when one has a traffic violation or a DUI that rendered their driver’s license suspended. Since one cannot use their driver’s license and they need to drive this Certificate of Financial Responsibility in terms of the SR-22 cover acts as their proof of insurance in the event that they are stopped by a police officer. The SR-22 policy does not come cheap and that is why it is only meant for times when the individual does not have a driver’s license for whichever reason.

Its premiums are usually higher than conventional auto insurance since it is sort of a punishment resulting in the suspension of the driver’s license. If your driver’s license has been suspended for one year, the SR-22 policy that you take up should be for the period which your license is in suspension. If during this SR-22 filing period the individual commits another traffic offense, the matter is reported to the states DMV office. It is within the state’s DMV prerogative to impose stiffer penalties or to revoke the SR-22 cover if they see fit.

There are numerous auto insurance firms in the US that offer Certificate of Financial Responsibility covers. All one has to put in mind is the minimum liability requirements for their state of residence. SR-22 cover is not only required in the event of a DUI arrest but can be used for many other traffic offences. To get more information on the companies offering SR-22 cover in your area, enter your Zip code at the top of this web page.