What is the Difference between Auto Insurance and SR-22?
Auto insurance and SR-22 are two often confused yet very different types of insurance products. For those unfamiliar with the differences, the two may appear similar, yet the coverage and purpose of each is far more intricate than what might meet the eye. SR-22 is a legally mandated document that simply states that you are carrying the required minimum auto liability insurance. You cannot purchase an SR-22 itself, but must purchase liability coverage through an auto insurance company and request an SR-22.
Auto insurance, on the other hand, provides coverage for your vehicle and can be purchased without the need of an SR-22. The primary purpose of auto insurance is to protect you, your passengers, and your vehicle in the event of an accident or theft. Policies vary from company to company and can offer differing levels, types, and amounts of coverage. To maintain coverage, typically monthly payments are made to the insurance company.
An SR-22 is a special vehicle liability document, typically required by your state, for those who have had their drivers license revoked or are required to provide proof of future financial responsibility for a specific violation. These are the main differences between the two, but naturally there are more scenarios where SR-22s come into play.
Lets look at some of the scenarios in which SR-22s are needed. A situation in which an SR-22 would be required would be when a driver has been convicted of drunk driving, been involved in an at-fault accident without insurance, or have previously had their license revoked due to a variety of reasons. In all the above cases, the state requires that certain drivers carry an SR-22 to ensure that they will be able to cover any potential costs incurred due to an accident or other unfortunate event.
One misconception is that an SR-22 is a form of insurance. Its important to remember that an SR-22 is only a document required by the state to prove that you have either the minimum or higher amount of insurance prescribed by your state. In order to acquire an SR-22, you must buy an auto insurance policy and then submit the SR-22 form to the proper government office.
In summary, the differences between auto insurance and SR-22 are clear. Auto insurance protects you, your passengers, and your vehicle in the event of an accident or theft. The primary purpose of an SR-22 is to prove to the state that you are carrying the required minimum auto liability insurance, typically in the face of driving violations. To obtain an SR-22, you must buy an auto insurance policy first and then submit the SR-22 form to the proper government office.
If you have been convicted of a serious driving violation, then chances are you have received a letter or notification from the DMV indicating that you must obtain an SR-22. You should contact your insurance provider immediately, as the SR-22 form will need to be filed within a certain amount of time. Your provider will then notify the DMV that the SR-22 has been issued with the policy number and coverage effective dates.
When considering adding additional coverage, it is important to understand the value of your vehicle and the risks associated with the coverage. If you are a frequent driver or have a long commute, you may wish to consider buying additional coverage such as collision and comprehensive insurance. More coverage will result in higher premiums, however, you will benefit from the additional protection.
Depending on the severity of a traffic violation, the state may require that you carry an SR-22 for 3 to 5 years. During this period, if you fail to pay the required premium, the provider will inform the DMV and your license will be revoked. You will also be required to pay a reinstatement fee along with a premium owed to the provider. As such, it is important to be aware of any missed premium payments and to be sure to pay all premiums in full and on time.
In some cases, if you have been convicted of a DUI, your auto insurance provider may drop your policy entirely, due to the high-risk factor associated with the violation. In these cases, you will need to switch to a new provider if other insurers find you too high a risk, or if the provider does not offer a policy that meets the requirements for SR-22 filing.
The main takeaway point here is that auto insurance and SR-22s are two very different types of vehicle insurance coverage. While auto insurance features liability coverage in case of an accident, SR-22s are designed to prove that you are carrying state-required minimum liability insurance.
In conclusion, it is important to understand the differences between an auto insurance policy and an SR-22 in order to be prepared to purchase the required coverage for driving. Being familiar with the differences between the two policies can save you both money and trouble in the long run, as insurance companies may charge higher premiums in the event of a claim or license suspension.
Now lets look further into the differences between an SR-22 and an Auto Insurance policy. First and foremost is the price difference. An auto insurance policy will typically cost more than an SR-22 due to the additional coverage and protection. Furthermore, taking into account the type of incidents the policy covers and potential deductible amounts, should you have to file a claim, the differences in cost become more evident.
An SR-22 typically has fewer coverage limits when comparing it to an auto insurance policy. Since the purpose of an SR-22 is to prove to the state that you are carrying the required minimum auto liability insurance, it does not provide coverage such as collision, comprehensive, or any other type of coverage found in most auto insurance policies. In some cases, you may be able to upgrade your policy and receive additional coverages with an SR-22, but this will depend on your insurer.
The most important difference when comparing an SR-22 and an auto insurance policy is the timeframe associated with each. An auto insurance policy can be purchased and renewed at any time, year round, while an SR-22 is a document that must be filled out and approved at certain times of the year. This process can take anywhere from a few days to a few weeks depending on the state and severity.
In some states, an SR-22 may outline higher liability coverage amounts than the state requires, even if your auto insurance policy does not cover those amounts. Other states may require that you switch your auto insurance policy over to an SR-22 policy if you are given the requirement, as they may not like the risk of allowing traditional auto insurance policies to remain in effect with the higher risk presented.
When filing an SR-22, the process may involve additional paperwork and verification, including proof of residence, proof of income, vehicle registration and driver’s license copies. An auto insurance policy, in turn, typically requires fewer of these types of documents, since its main purpose is to provide coverage rather than to provide proof to the state.
Lastly, SR-22s are widely monitored by the DMV. It is important to make sure all premiums are paid on time, and that the provider is contacted with any changes to your coverages, contact info, vehicle, or residence. If the DMV finds out that your coverage has lapsed, the filing for the SR-22 may be cancelled and your license suspended.
When comparing SR-22s and auto insurance policies, it is important to understand the differences in order to ensure that you are meeting the minimum requirements stipulated by the state. Knowing the type of coverage each offers will help you decide which is the best for your needs and budget. In the end, the decision should be based on the specific risks that you will face while driving, and what level of coverage makes the most sense for you.