If you've been ordered to carry an SR-22 for any reason, it's important that you understand what to expect. An SR-22 is a certification that you're carrying the required liability coverage in order to maintain your driving privileges. Your state's Department of Motor Vehicles will monitor your coverage and will be notified if your policy lapses at any time during the SR-22 enforcement period. Before you jump into the first policy you find just to start your coverage period countdown, here are a few things that you should know about managing the cost.
Shop Around Before You Buy
The true cost of the SR-22 isn't in the certificate itself. In fact, most insurance companies only charge a small fee for issuing the certificate. Instead, the cost of the insurance coverage itself, the coverage required by the SR-22, is what's usually the most expensive.
Your premium cost will depend largely on the offense that led to the SR-22 order. It could be something such as driving without insurance, or it could be a DUI. Each insurance company rates violations differently, so you may find that the coverage you require is cheaper with one company than it is with another. By taking the time to call around, you may be able to find a better deal than if you just go with the first company you find or with the company you're already with.
Carry Multiple Types Of Insurance
Even though it can't reduce the cost of the SR-22 coverage itself, working with an insurance company that offers discounts for carrying multiple lines of insurance may help save you money. This is only the case if you're moving policies you'd be paying for anyway, though. If your insurance company offers a multi-line discount, consolidate all of your insurance, such as homeowners, auto, and life, all into one company so that you can get the premium discounts. Some companies offer great discounts off your total premiums just for carrying more than one type of policy.
Switch To An Older Car
Remember that part of what affects your insurance premiums is the car that you're driving. If you're driving something that's fairly new, the replacement cost and such will be higher. That drives your premiums higher. In addition, if you're driving something that's financed, you'll be required by your lender to carry full coverage on it. Full coverage is the most expensive, and you won't have any room to adjust that coverage to cut costs. When you aren't bound by a lender's requirements, you can drop your coverage to liability only. This allows you to carry the required liability protection to appease the state's SR-22 mandate without having to pay the cost for other coverage that you may not need right now. Consider replacing your newer car with something older that's not financed so you have more flexibility in your premiums and coverage.
Don't Insure A Car
When the state orders you to get an SR-22, they will tell you how long that SR-22 has to be in force for. It can be anywhere from a few months to a few years. That time period doesn't start counting down until you actually have that SR-22 in force.
You can save costs by opting for a non-driver SR-22 policy. This is an SR-22 that provides you with the liability coverage that you need to have even if you don't have a car. That way, you can get your SR-22 period out of the way even if you haven't been able to afford a new car. As an alternative, if you have a motorcycle, you can insure that under your SR-22. The cost to insure your motorcycle will be less than that of a car, so you'd save money overall on the policy.
To learn more about SR-22 insurance, contact a company like Able Insurance Agency.
When you start thinking about getting insurance, it can be overwhelming to hear the advice from family and friends. While some people might encourage you to stockpile money and insure yourself, others might warn about the expense of paying for car repairs or a stay in the hospital. However, even the most conservative financial experts talk about the importance of having sound insurance. Because it can be difficult to find the right policies, I decided to create a website completely dedicated to providing free information about insurance. Every situation is different, but if you are like most people, you will need a decent homeowners, medical, auto, and life insurance policy to protect you from unforeseen circumstances.