Finding out that you need SR-22 insurance can be a good thing and a bad thing. It is a good thing because it offers a way to keep your driver's license if you experienced a major traffic violation or problem, but it can be a bad thing because it often costs more than a regular auto insurance policy. There are several reasons SR-22 insurance costs more than regular insurance, but here are the main two reasons:
The insurance company has more responsibilities
When an insurance company agrees to insure a person that needs SR-22 insurance coverage, the insurance company takes on more responsibilities and incurs more work. A person that needs SR-22 insurance will need a form from the insurance company that proves he or she obtained this type of policy. This form is called an SR-22, and this is something the insurance company will have to prepare.
In addition, the insurance company takes on the responsibility of notifying the DMV if this person's insurance policy lapses. If a lapse occurs, the insurance company must prepare another form and send it to the DMV immediately. These are forms that are never needed with regular auto insurance policies, so insurance companies charge more for SR-22 policies because they have more work to do.
It is a type of insurance designed for high-risk drivers
The second reason you will pay more for an SR-22 policy is to cover the extra risks. People who need these types of policies are considered high-risk drivers, and insurance costs are based on risk factors. People with low risks pay the least for their insurance coverage, while people who are high-risk pay the most for their policies.
If you need SR-22 insurance, it is probably because you had a DUI or too many traffic violations, and this makes you a high-risk driver. High-risk drivers are more likely to cause accidents and file claims than low-risk drivers. While you might pay a little more for your policy, though, it might be the only option you have if you want to continue driving with a driver's license.
You can find affordable SR-22 policies, but you may need to call around to request several quotes. As you do this, keep in mind that you will need to purchase a policy quickly, because the DMV does not typically give a person a long time to do this. Contact an insurance company like Angel Auto Insurance to get a quote.