SR-22 insurance: What does it do?

An SR-22 also known as a certified policy is a form that is filed with your state to show that you are meeting your state's minimum auto liability insurance requirements. An SR-22 may also be referred to as a certificate of financial responsibility, or, in Virginia and Florida, an FR-44.

People may mistakenly refer to it as "SR-22 insurance." An SR-22 is not insurance ─ it's simply a document provided by your insurance company that proves you have liability coverage on your car insurance policy.

SR-22s are typically required in the wake of a driving-related offense. If your state requires you to have an SR-22 to drive legally on the road, your auto insurance company may send the form directly to your state’s Department of Motor Vehicles (DMV).

Again, this is just to let them know that you carry at least the minimum requirement liability coverage on your policy. Note that, not all insurers offer SR-22s, so make sure to check with yours if your state requires one.

Reasons to file an SR-22 certificate

An SR-22 is usually required due to incidents that a state government considers running a higher risk of accidents or insurance issues later on. Incidents may include:

• DUI/DWI convictions
• Reckless driving
• At-fault accidents without insurance
• License suspensions

Steps to obtain SR-22 insurance

Obtaining an SR-22 is generally not too difficult and is handled through the insurance company. Here are the steps you’d to take to get one, so that you can legally drive on the road:

1. Notify your insurer that you need an SR-22. If yours doesn’t offer this service, you may need to find an insurer that does.
2. Depending on the coverages you have in place, you may need to update them to meet minimum state requirements. If you’re uninsured, you’ll need to find an insurance company that files SR-22s.
3. Typically, you’ll need to pay a one-time fee to file an SR-22 in the range of $15 to $50.
4. Your insurer will submit the SR-22 electronically to your state’s DMV. You’ll receive confirmation once it’s processed.
5. You may need to carry an SR-22 for three or more years, according to Forbes. Cancelling your insurance during this time may result in the suspension of your license and other penalties.

Costs associated with SR-22 insurance

The cost of an SR-22 itself is relatively inexpensive – as mentioned above, in the range of $15 to $50. However, since an SR-22 is required for certain types of driving offenses, it usually results in a surcharge on your auto insurance policy.

Not every motorist needs an SR-22. Laws vary by state, but in general, drivers may need to have their insurance company file an SR-22 form with the state department under the following circumstances:

• Conviction for driving under the influence or driving while intoxicated
• Serious and/or repeat traffic offenses
• An at-fault accident with no insurance
• License suspension or revocation

SR-22 requirements vary by state in terms of the fees, the length required to carry it and the traffic-related offense that results in it. But the purpose is essentially same across the board – to prove that you meet your state’s minimum liability insurance requirement. Each state, however, has its own standards for situations that require it, how long you need to carry it and any penalties involved. Most state use SR-22s but some states don’t, according to Bankrate, such as:

• Delaware
• Kentucky
• Minnesota
• New Mexico
• New York
• North Caroline
• Oklahoma
• Pennsylvania

Some states require FR-44 forms, like Florida and Virginia. It works similarly to an SR-22 but the requirements depend on the type of traffic-related offense, says Bankrate. The main difference, though, is that the form typically requires drivers to have more than the minimum coverage required by that state.

SR-22 terms and requirements vary by state, but here are some guidelines to keep in mind:

• You'll likely need to have an SR-22 showing continuous insurance coverage for about three years (or longer in some states).
• If your policy lapses or expires during this period, your insurance company is required to notify the state.
• Failure to comply with the terms of your SR-22 may result in suspension of your license.
• Once you properly fulfill your state's time requirements, your SR-22 status is typically lifted.

How long an SR-22 stays on your driving record

While the SR-22 itself is only temporary, the violation that triggers it may stay on your driving record beyond the SR-22 period (which may about 3+ years). A severe traffic violation, like a DUI/DWI, may stay on your driving record for 10 years, depending on your state. It may also continue affecting your insurance premium after the SR-22 requirement ends.

If you are required to file an SR-22, contact your insurer to obtain the documents for submission to your state's appropriate department.

For more information about obtaining an SR-22, check with your insurance provider.