What Is the Purpose of SR-22 Insurance?
If you’ve recently been told that you need to file an SR-22 form, you might be wondering what it is and why you need it. Many people refer to the SR-22 form as a type of insurance, but it’s a document filed with the state proving that your auto insurance meets the state’s minimum requirements.
Who Must File an SR-22?
Not everyone must file an SR-22 form, also called a Certificate of Financial Responsibility. If you receive notice that you must file SR-22, it’s crucial to do so before the stated deadline to get your license reinstated or avoid having it revoked.
SR-22 filing may be required for individuals who have been involved in certain types of traffic violations or accidents.
Why Is SR-22 Insurance Required?
Several situations can lead to an SR-22 requirement, including the following:
- DUI/DWI convictions—One of the most common reasons for an SR-22 requirement is a conviction for driving under the influence (DUI) or driving while intoxicated (DWI). These offenses are considered high risk, and filing an SR-22 is required to reinstate driving privileges.
- At-fault accidents—If you’ve been found at fault in an accident and didn’t have proper insurance coverage at the time, you may be required to file an SR-22 as a condition for reinstating your driver’s license.
- Driving without insurance—Operating a vehicle without insurance or allowing your insurance to lapse can result in an SR-22 requirement.
- Multiple traffic violations—Some states may require SR-22 filing if you accumulate multiple traffic violations or driving offenses within a certain period.
Why File an SR-22?
An SR-22 serves as a risk mitigation tool for the state. It helps ensure that high-risk drivers have the required insurance coverage in place to help protect other motorists in case of an accident. It is often a state-required step to reinstate a suspended or revoked driver’s license. It allows individuals to regain their ability to drive legally.
SR-22 filing also allows the state to monitor a driver’s insurance coverage. Insurance companies are required to notify the state if a policyholder’s coverage lapses or is canceled to ensure ongoing compliance with insurance requirements.
While it is an additional requirement for some drivers, filing SR-22 is an essential step toward reinstating driving privileges and maintaining legal compliance. If you find yourself in a situation where you need SR-22-compliant insurance coverage, contact the agents at Above All Insurance in Phoenix, Arizona, for a personalized auto insurance quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: SR-22 Insurance