If you are required to get a SR-22 on your auto insurance policy, you most likely will see a spike in how much you pay for coverage. The rules for a SR-22 tend to vary from state to state, but there are some basics that are similar. If you have been informed you need a SR-22, here is what you need to know.
What Is a SR-22?
A SR-22 is not auto insurance. It is a certificate that verifies that you do have at least the minimum amount of liability insurance coverage required by your state. The form is filed by your insurance company with the Department of Motor Vehicles, or DMV.
A SR-22 can be required for a range of situations, but usually for a serious traffic offense or accident. For instance, if you were charged with a DUI or were involved in a car accident and you did not have coverage, you could be required to have a SR-22 going forward in the future.
You might also be required to have one if you have a suspended or revoked license.
One of the side effects of a SR-22 is that your insurance rates could go up. Insurance companies typically charge a filing fee in addition to raising the premium.
The SR-22 must be carried for a certain time period. When you are notified that you are required to get one, the amount of time you have to keep it will be provided to you.
What Can You Do to Save on Coverage?
Unfortunately, you might not be able to avoid an increase in your rates, but there are steps you can take to ensure you get the lowest rate possible in your situation. Some steps might not apply now, but as time passes, you can certainly use them to get a lower rate.
For instance, you need to maintain coverage. Insurance providers typically offer customer loyalty and continuous coverage discounts for maintaining coverage over a period of time.
You also need to ensure that you are following the rules of the road. One ticket or accident could raise your rates even further. However, avoiding a ticket or accident could result in a reduction in what you pay after the first year when it is time to renew your insurance policy.
To find out what other steps you can take to keep your insurance rates as low as possible, work with an insurance agent like those at Angel Auto Insurance.
Share6 March 2016
When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.