SR-22 Certificate: What It Is and Why Drivers may be Required of It

Car liability insurance is a mandatory requirement for driving a car in the US. This type of insurance is intended to cover two basic elements: property damage and bodily injury. Liability coverage for damaged property will pay for the cost of repair or replacement of another person’s property, such as car or fence, which the liable driver has damaged. Liability coverage for bodily injury, on the other hand, is meant to cover cost of medical expenses, as well as loss of income suffered by the person that the liable driver injured.

When renewing a vehicle registration, one may be asked to present proof of car liability insurance coverage; a reasonable requirement, so to say, because liability insurance is meant to protect other people (and their property) from any sort of harm and damage. Well, one can just imagine the effects of not being compensated when injured in an accident due to another’s acts of negligence or recklessness, simply because the liable driver does not carry car liability insurance and the state’s Department of Motor Vehicles (DMV) did not even bother to verify when the vehicle was registered or re-registered.

There are instances, though, when a driver fails to maintain, does not renew or decides to terminate his/her insurance after the registration/re-registration period, due to the costly policy that need to be paid. Habush Habush & Rottier S.C. ® agrees that car insurance can be expensive. Not having it, however, can prove to be much more costly. This can be proven when a driver: gets pulled over by the police and fails to show proof of having car liability insurance coverage; gets involved in an accident wherein he/she is at fault; gets multiple tickets for traffic violations within a short period of time; loses his/her license due to revocation or suspension; or, is charged of driving under the influence (DUI). In any of the mentioned instances, he/she could be required by his/her state’s DMV to submit an SR-2 form before being allowed to operate a motor vehicle again.

An SR-22 (also known as an FR-44 in some states) is a Certificate of Financial Responsibility (CFR) form that an insurance provider submits to the state’s DMV to prove that the driver (being required of it) already carries car liability insurance coverage required by the state. Drivers required to have an SR-22 filing also usually pay higher insurance premiums. The duration of an SR-22 is usually three years. After the third year, if the driver has had no traffic violations, then the state may lift the SR-22 requirement; however, a driver may be required to extend it if charged anew with a traffic offense.

According to the website of Habush Habush & Rottier S.C. ®, there are insurance companies, though, that are not accredited by the state’s DMV to issue SR-22 certificates. Thus, drivers will need to do a little scouting on this matter. Also, not all states require an SR-22; these states are Pennsylvania, Oklahoma, North Carolina, New York, New Mexico, Minnesota, Kentucky and Delaware. Every driver is required to know his/her state’s requirements regarding car insurance liability coverage and SR-22, especially if he/she has intents on transferring to another state.