An SR22 insurance form is filed when there is a need to insure a particular driver for reasons of incidents which caused the revocation or cancellation of his license. An SR22 insurance is usually required when a regular driver's license cannot be issued due to incidents which lead to the cancellation of a driver's license. By way of requiring the submission of an SR22 insurance form, the state is secured that the driver is ensured.
There are different requirements in filing an SR22 form depending on the policy of each state. The reasons for the compulsory filing of an SR22 insurance form, the procedure of filing, the period for filing the insurance, minimum coverages of the policy and the fees to be paid therefor also varies.
The most common reasons for the filing of an SR22 insurance include driving under the influence (DUI), speeding and accidents. This is usually required when the driver is at fault and when the driver is not insured. Just like any other auto insurance, an SR22 insurance covers particularly injuries caused by collision. However, it becomes a special kind of insurance since it's main purpose is to inform the government that the erring driver already acquired an insurance. This is done by the insurer through the filing of the SR22 form.
Generally, because of this particular purpose, an SR22 insurance costs more than a regular auto insurance. The rates may vary base on the reason for the filing of an SR22 form. If the driver is mandated to secure an SR22 insurance for the reason of a serious offense, then the driver will be considered by the insurer as a high risk, which will thereby have the effect of increasing the rate of the insurance.
Auto insurance companies take into consideration several factors to determine the risk level of an SR22 applicant. These factors include the age, marital status, claim history and driving record. If the applicant reached a higher risk level, then the cost of the insurance will also be higher than the usual rate.
Most insurers also charge filing fees for the insurance. Most insurers charge a rate of $15 to $25 filing fee. If the policy is allowed to lapse by the insured, the same shall have the effect of revocation of license. Therefore, it is a must that the premiums for an SR22 insurance be paid on time to keep the policy from expiring.