Reasons You May Need SR-22 Insurance
SR-22 is a document you're required to file to prove you are abiding by your state's auto liability insurance laws. It's sometimes mistaken for insurance, but it's just a document showing financial responsibility and proving liability coverage for your car's insurance policy. Depending on your state's laws, you may be required to have SR-22 insurance for three years or more. Failing to comply may lead to a license suspension. Here are some reasons you need SR-22 car insurance.
You Committed Traffic Offenses
One reason you need SR-22 insurance is if you have been charged with multiple traffic offenses over a short period. If you have been caught violating traffic rules several times in a few months, you will be required to apply for SR-22 insurance. Common examples of offenses include running a red light, speeding, and failing to signal. Without this insurance, you may not be allowed to drive again.
Legally Driving Without Worrying
Driving with a suspended license could result in severe fines and jail term. It could also cause your suspension to be extended. However, when these restrictions are lifted, you can apply for an SR-22 policy. The policy proves that you have the right liability coverage.
When you apply for this policy, your insurance provider will inform the state. Therefore, if you are stopped by a law enforcement officer while driving, the form will show them that you are allowed to drive legally.
You Caused an Accident Without Valid Insurance
It's illegal to drive without valid insurance. If you're caught by the traffic police, you may be subjected to severe penalties such as prison time, fines, and a license suspension. However, the penalties are more serious if you are involved in an accident without valid insurance.
In this case, you will be required to pay for your vehicle's damage out of your pocket. The other party may also sue you for damages such as medical costs and vehicle repairs. Also, if you are uninsured, it will be hard for you to find an insurance company that will accept covering you after being involved in an accident. This is why you need SR-22 insurance, to prove you have liability coverage and can use it for expenses arising after a car accident.
In Conclusion
The laws on SR-22 auto insurance can be confusing. You should consult an insurance agent to take you through the process of conforming to SR-22 insurance in your state. By complying with SR-22 insurance requirements, you have a second chance of driving on the roads and only have to wait for a few years before it is lifted. Talk to a local insurance company, such as Bill Blake Auto Insurance, to get started.