There are times when a person may need to purchase a special type of auto insurance that is called SR-22. This type of coverage is generally needed only in situations where a driver is considered a high-risk driver. If you need this, it is important to understand what it is, so here are three facts that may help you understand SR-22 insurance.
The Form Is Not Insurance
In itself, SR-22 is not really insurance. Instead, it is a document that states that a person has insurance. The insurance itself is normal auto insurance and can include any type of coverage. It may be the minimum coverage the state tells you to have, or it could be extra types of coverage that you choose to have. In any case, you must purchase insurance in order to get the SR-22 form, but this form is not actually an insurance policy. It is only proof of the policy that you have.
How It Works
When a person needs this form of coverage, he or she must generally purchase it by a certain date. Once purchased, the insurance company will file the SR-22 form with the state, and this will notify the DMV that the person has met the SR-22 requirement. This person must then usually go to the DMV to ensure that they received it and that it will stop their license from being suspended. If you do not purchase the policy by the date listed, you could and you likely will lose your driving privileges.
You Must Meet the Requirement in Terms of Time
The last thing to know is that you will have to keep this coverage for a certain number of years, and the exact amount could be anywhere from one to five years. You will learn this when you are told you need SR-22, and it is vital you keep the coverage during this time without allowing any lapses to occur in your policy. If you allow a lapse, your time requirement starts over.
For example, if you had the coverage for six months and let the policy lapse, you would need to purchase another policy and the time frame would start again. If you need it for two years, the six months would no longer count, and the time would once again start when you bought a new policy.
If you need SR-22 auto insurance or any other type of coverage, talk to an insurance agent today.