SR22: Why Must I Have it and What Does it Mean?

Insurance SR22SR22: Why Must I Have it and What Does it Mean?

SR22 is not actually a type of insurance. It is a form filed by your provider company verifying that you carry at least the minimum amount of coverage mandated by the state in which you reside.

SR22 Form

Most people don’t need an SR22, as either they carry adequate insurance, or they have not encountered a circumstance that would result in them being required to file an SR22. Typical situations that will result in be required to file an SR22 are license suspensions, being uninsured when you have a car accident, multiple violations of the law requiring auto coverage, or major convictions such as a DUI.

An SR22 allows the Department of Motor Vehicles, or the ruling body for automobile licensing in the state, to monitor whether a car owner is carrying the mandatory amount of insurance on their vehicle. The company will file the SR22 with the department as proof of coverage. This is usually in effect for a three year period. Should the insured fail to make payments, the company then cancels the policy and cancels the SR22, thus notifying the state.

The policy under an SR22 is really no different than a regular auto policy. The only difference is that this form, the SR22 is filed with the state, and the state is notified if the coverage lapses. You are covered for the same things, like driving someone else’s car.

Ask Your Company

If you are required to get an SR22, it does not entail much work. Ask your insurance company, or the company you choose, to issue one for you. They are fairly inexpensive and most companies will issue one free of charge, or with a fee every few months.