It is a type of insurance that many people may have never heard of. However if you live in a state which may have it available then it can mean the difference between operating a vehicle legally or not. What is this type of insurance? It is called SR22 insurance and we’ll discuss some details on this special type of coverage.
As just mentioned, SR22 insurance is a special type of coverage which is generally required for drivers who are judged to be at higher risk for accidents or injury while operating a vehicle.
It provides extra protection for the people who might become affected by these types of drivers. Some are some very important factors which may cause someone to have to obtain this type of coverage. It can include the following:
If a driver is charged with a DUI or DWI infraction this can be cause for this type of coverage. In addition if a driver has become involved in more than one accident over a short period of time than he/she may be judged to be a driver with a higher than average risk factor and therefore have to obtain this special SR22 insurance coverage.
If a driver elects to drive his/her car without a valid license and is caught doing so then this type of coverage may be the only way to avoid jail time or serious fines.
There are many states including Illinois which require that any vehicle registered and operating in the state carry a minimum amount of car insurance. If someone is operating a registered vehicle in this state and does carry the minimum amount of insurance than he/she will most likely have to obtain SR22 insurance or lose driving privileges.
Many car insurance companies can issue this type of coverage. Once coverage has been issued it is generally required to be in force for a period of three years. During this period this coverage must remain in force continually. The insurance companies are required to report any lapse of coverage to the state. If this does occur then there can be serious repercussions.
So it is very advisable to make certain the coverage remains in force over this period. If this does occur then the driver should be able to switch to a traditional policy at lower cost.
Obtaining this type of coverage may seem to be a hassle and extra expense. But it is only normally required for drivers who have made bad choices or been shown to be a bad risk for traditional coverage. It should therefore be taken very seriously and valued for the benefits it can bring.