How SR-22 Certificates Impact Auto Insurance

An SR-22 certificate, often referred to as a certificate of financial responsibility, is a state-mandated document required for certain high-risk drivers. This certificate serves as proof that a driver has the minimum required auto insurance coverage. Understanding the requirements and implications of an SR-22 can help affected drivers navigate the complexities of maintaining their insurance coverage and complying with state regulations.

How Does Having an SR-22 Certificate Affect Insurance?

The following are some ways an SR-22 certificate may affect your auto insurance:

• Higher premiums—Insurance companies view drivers who need an SR-22 as high-risk due to past violations such as DUIs, reckless driving or multiple traffic offenses. This increased risk translates to higher premiums.
• Limited insurance options—Not all insurance companies offer SR-22 filings. This limitation means you might have fewer options, and the companies that offer SR-22 insurance often charge higher rates.
• Policy cancellation—In some cases, your current insurer might cancel your policy if you need an SR-22. This cancellation forces you to find a new insurer, often at a higher cost.
• Additional fees—Besides higher premiums, there are usually additional fees associated with filing an SR-22 certificate. These fees can vary by state and insurance company but typically include a filing fee.
• Duration of requirement—The length of time you need to maintain an SR-22 certificate can also affect your rates. Typically, you need to keep the SR-22 for about three years, during which your premiums will remain elevated.
• Impact on future rates—Once the SR-22 requirement is lifted, your rates may decrease, but they might not return to pre-SR-22 levels immediately. Your driving record will still reflect the violations that led to the SR-22 certificate, which can continue to influence your rates.

Learn More

Contact Universal Insurance Services to discuss your auto insurance options.

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.