Does SR22 Insurance Take the Place of Liability Car Insurance?

Revocation or suspension of a driver's license requires an issuance of SR22 insurance in most states. These certificates of liability insurance are issued by insurance carriers on behalf of a driver in response to a legal judgment. Switching insurance policies between carriers during the penalty term is not against the law, but even a minor lapse of liability insurance when changing companies can add supplementary penalties to the original term.

Function

• SR22 filings -- often referred to as certificates of financial responsibility, SR22 certificates, SR22 insurance or SR22 bonds -- are not actually a form of insurance but a guarantee issued by an insurance carrier that liability insurance is in effect. A lapse or termination of auto insurance during an imposed term will trigger an alert to the Department of Motor Vehicles issued by the insurer.

Time Frame

• Increased motor vehicle infractions can extend the average three-year penalty term for a SR22. Allowing auto insurance to lapse during a penalty term before fully served can reset the term back to the original total. Some infractions, such as a DWI or a refusal to submit to alcohol testing, if convicted, can carry a five-year term for a first offense. Unsatisfied legal judgments may require a lifetime obligation to maintain a SR22 filing.

Features

• SR22 insurance may incur no additional charge for a filing, but most drivers with a license revocation and penalty conviction are rated up on an insurance policy for the original infraction. This includes offenses such as driving or involvement in an accident without proper insurance, hit-and-run accidents, driving under the influence of alcohol and refusal convictions. Some insurance companies charge a nominal fee for a SR22 filing.

Requirements

• Although some insurance companies can issue a SR22 filing electronically, a paper copy must be carried inside of the vehicle during the entire penalty term. If you are stopped by a police officer, this certificate must be presented along with a license, insurance card and registration.

Considerations

• Once convicted of an offense requiring a SR22 filing, even drivers who do not own vehicles must purchase what is known as non-owner SR22 insurance in order to reinstate a license.

Warning

• Although not all states require SR22 filings, they all share common systems such as the Problem Driver Pointer System, National Driver Registry and Commercial Driver License Information System to track convictions in other states. Those moving out of state after conviction must maintain a SR22 filing until cleared of the requirement even when moving to a state that may not enforce the penalty for new infractions.