Common Misconceptions About SR-22 Insurance.

If you are required by the courts to get a SR-22 insurance policy, you not be completely sure about what it entails. Here are some common misconceptions people may have about SR-22 insurance.

SR-22 insurance takes the place of your previous auto insurance policy.

People often assume that when they get an SR-22 policy they can stop their current insurance policy. This is not true; SR-22 is to be had in addition to your insurance policy. SR-22 is not even an insurance policy in the traditional sense, but merely refers to the form that your insurance company will submit to the state that proves your financial liability. 

Moving states means you can get rid of your SR-22 requirement.

Moving to a new state and getting a new license does not mean that you can stop your SR-22 insurance. If you are still in the time period that you are required to carry an SR-22, you will need to pay for it regardless of which state you now reside in. 

You can have different providers for your insurance and SR-22.

While you can shop around for the best rates on the combination of an insurance policy with an SR-22, you will have to have both provided by the same insurance company. Your insurance company will have to file an SR-22 on your behalf to prove that you carry the extra financial liability.

You do not need an SR-22 if you do not own a car.

Non-owner SR-22 are needed for those who do not own a car as mandated by the courts. This is to prove to the DMV that you will  still be able to accept the financial liability that every driver needs to have. Non-owner SR-22s are relatively cheaper and offer coverage to meet the financial requirements set by the state.  You will need an SR-22 if you want your license to be reinstated, regardless of if you own a car or not.

SR-22 policies are billed for every month.

An SR-22 policy will require billing only once (when you need the insurance provider to file the form). It is a onetime charge for a policy, but you may have to pay the same filing fee every time you have to renew the policy, depending on how long you are required by the state to have an SR-22.

SR-22 policies need to be kept current and are valid as long as the insurance is valid. So, make sure you have your insurance provider file an SR-22 every time you enter a new insurance term. Find more information by going here.