Business Auto

Dented carIf you have to get an SR-22 certificate, that means that state traffic authorities have deemed you a high driving risks. Now that you’re a higher risk on the road, you may wonder how this new classification will affect your auto insurance coverage.

Most drivers associate increased risks with increased auto insurance costs. If your level of risk rises, insurers frequently raise the cost of your auto insurance premiums. Your company will have to charge you more because it assumes a higher financial risk by insuring you.

Therefore, if you get an SR-22, you can reasonably expect to see increases in your auto insurance costs.

What is an SR-22?

An SR-22 is not an insurance policy. Rather, it is a certificate that your insurance company files with the Georgia highway authorities to prove that you have insurance coverage.

The state will likely require this proof if you receive a driving charge that designates you a high risk to others on the road. You might get an SR-22 requirement after a DUI charge, reckless driving charges, license suspensions or failing to carry insurance. The SR-22 certificate will stay on your driving record for a couple of years.

How an SR-22 Impacts Insurance Coverage

Even though the SR-22 certificate is not an insurance policy, it will likely impact your coverage.

Some insurance companies will not insure SR-22 carriers. If your insurance company suspends your coverage after you receive an SR-22, you will have to get a new insurance policy from a different company. This will likely mean price changes in coverage.

If your insurance company does insure SR-22 drivers, they will likely raise your risks to a high level. This may mandate certain changes in your present insurance coverage. Regardless of whether you have to manipulate the policy itself, the new high-risk classification might lead an insurer to increase your rates.

Other SR-22 Costs to Anticipate

Filing an SR-22 certificate may lead to other costs besides just rate increases. Therefore, monitor your own financial solvency to make sure you can afford to file the certificate and maintain coverage.

  • You might have to pay a cancellation or severance fee if you have to cancel an old policy in order to get the correct high-risk coverage.
  • Insurance companies routinely charge service fees to file an SR-22 policy with the state. These fees are usually minimal, however. You cannot file the SR-22 yourself.
  • SR-22 certificates expire if insurance coverage lapses. This is against the law and could lead to further penalties. Therefore, some insurance companies may require you to pay your policy premium in full, rather than in installments. This helps guarantee your policy will always stay active.

SR-22 carriers can expect extra auto insurance costs. However, an understanding of these costs can help you better plan for the eventuality of such changes.

We’ve got you covered. Peachstate Insurance can help you find an Newnan SR-22 policy that meets your legal and cost needs. Call us at 877.997.2478 for more information on filing a certificate.

Posted 6:09 PM

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