Why SR-22 Is Not Really An Insurance Policy
If you encounter a time in life where you are told by the DMV that you will need to purchase SR-22 auto insurance in order to keep your driver's license valid, you will need to buy the policy quickly if you want to keep driving. One thing you should understand about this, though, is that SR-22 insurance is not actually an insurance policy, and this is something many people do not know. Here are a few things to understand about SR-22 insurance coverage to help you understand what it really is and what it is not.
SR-22 Is a Document
Getting SR-22 insurance does not mean you are actually purchasing a special type of coverage that is called SR-22. What it really means is that you are buying an auto insurance policy that comes with a special type of document called an SR-22 document. This is a document the insurance company gives you personally or sends directly to the DMV. This is the document you must have to prove that you have auto insurance coverage in order to avoid losing your license. Therefore, all SR-22 is really is a document that proves to the DMV that you have an auto insurance policy.
The Policy You Get Is Really a High-Risk Policy
The policy that you get from the insurance company can carry only minimum legal coverage or it can have a lot of coverage. In any case, though, what you are getting is a high-risk auto insurance policy. When you need SR-22, you automatically get labeled as a high-risk driver, and therefore, the policy you get for your auto insurance coverage will be a high-risk policy. This means that you will pay more for the coverage simply because you now need to prove that you have auto insurance coverage in order to continue driving legally.
The Insurance Company Agrees to Keep in Touch With the DMV
When you buy a policy like this, the insurance company giving you the coverage takes the responsibility of keeping in touch with the DMV in relation to your policy. When you get the policy, they will give you the document that proves this. If your policy lapses, they will let the DMV know. You cannot keep your driving privileges if you fail to keep your auto insurance policy. If you need to purchase a policy like this, you can do so by talking to auto insurance agent about your needs.
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