Auto Insurance Claims

Contrary to Popular Opinion, SR22 Is Not a Form of Insurance

Many people think of an SR22 as an insurance product. However, in the real sense, it is anything but that. It is a certificate of compliance that your insurer files with the state as part of the process of reinstating a suspended license.

Getting SR22 auto insurance in Chicago is the first step to restoring your driving privileges after your license is suspended. Contrary to popular beliefs, an SR22 is not a form of insurance coverage. It’s a certificate issued by an authorized insurance company confirming that you carry a valid cover.

First off, you need to buy an insurance cover and then have the insurer mail the certificate to the state department. Typically, sending the document carries an extra cost of about 20 dollars and often happens within 24 hours.

Car Insurances and its purpose

What leads to an SR22 certificate?

Traffic laws are part of the state’s effort to ensure road safety, improve road user experience, and reduce traffic accidents. If you are guilty of flouting these laws, you will be punished accordingly. Major traffic infractions, such as driving under the influence, often lead to the suspension of your license.

During this period, you are legally barred from driving a car awaiting its restoration. Depending on the gravity of your offense, the ban period might range from a few months to a few years. Once the ban period elapses, it is time to ask the state to reinstate your driving privileges.

Many insurance companies can sell SR22 coverage. Nevertheless, some prefer not to; they might reject you overtly or not reply to your inquiries. With that in mind, you are better off looking into insurance firms that focus on high-risk auto insurance corporations. An insurance broker who manages the filings on a daily basis is likely to offer more benefits as well as get the job done quickly.

What makes an SR22 certificate costly?

Although the SR22 is the most visible aspect of reinstating a driving license, it is probably the cheapest item on the list. For starters, you will incur a myriad of fees and fines that can go all up to over $1,000. Then, you will have pricy insurance premiums to contend with.

Following the suspension of your license, the insurance company now classifies you as problem driver. That means that the cost of your insurance premiums can spike by as much as 80 percent. The high cost of premiums is the main reason why the state requires you to file a certificate of coverage.

Buying a vehicle coverage policy with an SR22 filing does not have to be confusing. You can consult an insurance agent or make the transactions online. The insurance broker must complete the rest of the process. By dealing directly with an insurance agent, you can get an exact price a little faster. On the other hand, obtaining auto insurance online might delay a correct rating because the SR22 fees differ per state. As a result, you might not find out exactly what the cost is until you purchase the policy.

In the end, contrary to common misconceptions, SR22 is not a form of insurance coverage. It is a certificate that proves that high-risk drivers have insurance coverage following the suspension of their licenses.