You may have recently been to court, where the judge told you that because of the way you drive, you need to file and keep an SR-22 form. Or maybe you just got a letter from the Department of Motor Vehicles (DMV) in your state telling you that you need to fill out this insurance form right away. The form is usually easy to get from your preferred insurance company, but you need to know what each part of this required document does.
Our team at American Auto Insurance has put together some useful information about this insurance certificate to help you get ready for the responsibility of making payments on time during your coverage.
SR22 insurance is required for high-risk drivers to prove financial responsibility and comply with state driving laws But many drivers wonder – what happens if I let my SR22 coverage lapse? Unfortunately, the consequences are quite serious
This comprehensive guide explains everything you need to know about the impacts of an SR22 lapse and how to avoid it
What is SR22 Insurance?
First, let’s review what SR22 insurance entails. SR22 gets its name from the SR22 form that high-risk drivers must file with their state’s Department of Motor Vehicles (DMV). This form proves you have sufficient auto insurance coverage as required by state law.
You’ll need SR22 insurance if:
- Your license was suspended or revoked
- You’ve been convicted of serious violations like DUI
- You’ve accumulated multiple traffic violations
SR22 insurance itself is just normal car insurance. But it comes with state-mandated minimum liability coverage levels that are higher than the minimums for standard policies.
For example, a standard policy may require:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $10,000 property damage liability
With an SR22, that could increase to:
- $50,000 bodily injury per person
- $100,000 bodily injury per accident
- $50,000 property damage liability
In addition to higher coverage minimums, SR22 policies require filing a form with the DMV proving you have active insurance. This SR22 form must be kept on file for a set period, usually 3 years.
Why Maintaining Coverage is Critical
The SR22 requirement is placed on high-risk drivers for a reason – to ensure you maintain auto insurance and drive safely. That’s why it’s absolutely critical to maintain your SR22 coverage with no lapses.
If you let your SR22 insurance policy cancel or expire, here’s what happens:
- Your license is suspended
- You must pay fines and fees
- Your SR22 requirement restarts
As soon as your insurer notifies the DMV that your SR22 coverage lapsed, the DMV will immediately suspend your driver’s license. This happens automatically by computer.
Once suspended, you are no longer legally allowed to drive. Doing so can lead to additional fines, jail time, and extension of your SR22 requirement.
Costs for Letting SR22 Coverage Lapse
On top of your past-due premiums to reinstate coverage, you’ll have to pay fees to have your license reinstated. These can include:
- License reinstatement fee: $50 – $200
- New SR22 filing fee: $15 – $50
- Additional fines for lapsed coverage and driving on a suspended license
In most states, if you allow your SR22 coverage to lapse, your SR22 filing period starts over from day one. For example, if you were supposed to maintain SR22 for 3 years, and you lapse after 2 years, that 3-year clock resets.
The total cost of an SR22 lapse often ranges from $300 to $600 or more when you factor in all the fines, fees, and increased policy rates.
How to Prevent an SR22 Insurance Lapse
Clearly, you want to avoid the headaches and extra costs of an SR22 lapse. Here are some tips:
- Pay premiums on time – Set up autopay through your insurer
- Keep your insurer informed – Alert them if you have trouble making payments
- Watch billing cycles – Note when bills are generated so you pay on schedule
- Contact your agent – Discuss options if you anticipate issues paying
- Maintain records – Keep proof you maintained continuous insurance
- Check with the DMV – Confirm SR22 requirements are met
- Compare quotes – Find cheaper SR22 rates to make premiums affordable
Alternatives to SR22 Insurance
There are a couple alternatives that can satisfy SR22 requirements in some states:
- State high-risk pools – If SR22 is unaffordable, high-risk pools may offer cheaper rates
- Bond filing – Posting a cash bond with the DMV can substitute for SR22 insurance in some states
- Non-owner SR22 – Provides liability coverage when driving others’ cars, with lower premiums
Consequences are Severe for SR22 Lapses
Letting SR22 insurance lapse puts your driving privileges and finances in jeopardy. Think carefully about your ability to pay ongoing premiums before obtaining SR22 coverage.
If already carrying SR22 insurance, make on-time payments a top priority. Consistent coverage will save you hundreds in fees and fines.
And if you made the mistake of lapsing, act quickly to get caught up. The DMV and your insurer may offer some leniency if you correct the issue promptly.
Maintaining SR22 insurance is challenging but essential. Taking steps to prevent lapses will help avoid compounding an already difficult situation. Don’t take the risk of losing your driving privileges.
Key Takeaways
- SR22 insurance is required for high-risk drivers to prove financial responsibility
- If you let SR22 coverage lapse, your license will be suspended
- Lapses lead to fines, fees, and restarting your SR22 requirement
- Set up autopay, watch billing cycles, and compare rates to avoid lapses
- Alternatives like bonds and non-owner SR22 are available in some states
- Act quickly if your coverage lapses to minimize consequences
Following state SR22 insurance requirements is crucial for staying on the road. Don’t put your driving privileges in further jeopardy by allowing lapses in coverage. With vigilance and proactive steps, you can maintain continuous insurance and avoid suspension.
What Happens if I Forgot To Pay My Insurance When I Have an SR-22?
Form SR-22 usually lasts for three years. If you want to renew it, you need to fill it out 45 days before it expires. This is because of the 30-day processing window from Illinois’ Secretary of State. Being late with renewing your certificate can get you in trouble with the state, so it’s best to do it on time. We know that late payments happen, but if you let your SR-22 insurance lapse, you will still have to deal with consequences. Essentially, driving without your SR-22 is like being an uninsured motorist.
If you don’t pay your fee promptly, your insurance company has to report it to the DMV. The DMV will suspend or even revoke your license and vehicle registration. Once this happens, you can no longer legally drive until you rectify the situation. Luckily, there are ways to fix the circumstances, but you must act quickly if your SR-22 lapses.
First, contact your insurance company, explain your situation, and work with their insurance experts. The agents can help you develop a plan to catch up on your missed payments. You can’t file another SR-22 form until you fulfill your previous payments. When you make your last payment and send your insurance company a new form, they let the DMV know about your new coverage. In addition to the money you owe, the state may also want you to pay the DMV a fee and other costs to get your license back.
After you file a new form, many states may require your filing period to restart if it lapses. Say the state told you to keep the form for five years, but it expired in the third year. You would have to start all over again in the first year. If you think this will be hard for you, work with your insurance company to come up with a way to stay on track so you pay your bills on time and don’t let your insurance lapse.
What Is SR-22 Insurance?
An SR-22, or Financial Responsibility Insurance, is a form that some states require some drivers to have. It is usually ordered by the court. In some states, the form can be part of your insurance plan. However, an SR-22 is not really a type of insurance. It’s more like a certificate of financial responsibility from your state’s DMV. Essentially, the document is proof that your insurance plan meets the minimum liability coverage by your state law. Not all drivers require this document, but your state may mandate you have this document with you if:
- You have a driving under the influence (DUI) charge.
- You’ve been in accidents as an uninsured driver.
- There is proof that you are a careless driver: several tickets and warnings in the last few months
In Illinois, the Secretary of State requires drivers to contact an authorized insurance company to write these policies. Typically, you can request the companies to provide you with an SR-22 quote before committing to a policy. Illinois also needs the insurance company you pick to have a power of attorney on file with the state. You can sign the Financial Responsibility Certificate by hand, on paper, or electronically at the insurance company’s home office after choosing an agency. It comes on one of three certificates. These include:
- Certificate of Ownership: This certificate covers drivers who own the car. Do not forget to include information about the car, like its make, model, and license plate number.
- Certificate of Operator: This is for drivers who aren’t the owners of the vehicle they’re driving.
- Operators-Owners Certificate: This certificate is for all drivers, whether they own a car or not.
The Secretary of State may need up to 30 days to process the form after it is sent in. The insurance company will send you a copy, and the Secretary of State’s office will send you a letter.
SR22 Insurance – How to Get Your Driver’s License Reinstated Quickly
FAQ
How long do I need to keep SR22 insurance in California?
What happens if your SR-22 lapses in California?
What happens if my SR-22 lapses in Texas?
What happens if my SR-22 lapses in Ohio?
How long does SR-22 insurance last?
For example, if you’re required to file an SR-22 for three years but let your insurance lapse on the last day, then you’ll be required to have SR-22 insurance for another three years — bringing the total time period to almost six years.
How long do you have to file an SR-22?
Most states will require you to file the SR-22 for three years, though the number can range anywhere from one to five years. Note that you need to have uninterrupted SR-22 insurance coverage for the full filing period to meet the SR-22 requirements. If your insurance lapses, you won’t get “credit” for your previous SR-22.
What is an SR-22 form?
High-risk drivers and their insurance companies file this form with the state department of motor vehicles (DMV). An SR-22 certifies that a driver has an active auto liability insurance policy that meets state-required minimum coverage. Insurance companies must file the SR-22 on behalf of drivers.
What happens if SR-22 insurance lapses?
If your state DMV tells you that you need SR-22 insurance for longer than you expected, chances are that you unintentionally reset the time requirements for filing your SR-22. There are a few ways this could have happened. Whenever your SR-22 insurance lapses or is canceled, your insurance company is required to immediately notify your state DMV.