The Cost of High Risk Insurance (SR22)

Do You Need Special High Risk Car Insurance?

When it comes to auto insurance, people have a tendency to know the basic types that are offered.  Everyone knows about liability insurance, and people have at least heard of collision insurance and comprehensive insurance, even though they may get confused with the specifics behind the latter two components. 

However, there is a type of insurance that tends to fly under the radar, primarily because it’s a type of insurance that nobody wants to be in a position to purchase.  The insurance is known as SR22 car insurance, also known by the more non-technical sounding name of high risk car insurance.

The Details about SR22 / High Risk Insurance

SR22 car insurance is named after the SR22 form that a person must fill out after his or her license has been suspended by the court.  The form is completed in order to acquire a specified amount of liability car insurance, which varies from state to state.

The reasons why a person would obtain SR22 insurance include:

  • Not having proper insurance documents when stopped by the police
  • Being involved in a car accident without proper insurance
  • Driving under the influence of a drug or alcohol (DUI or DWI)
  • Serious violations of traffic rules
  • A gross accumulation of moving violations
  • Parking ticket payment negligence
  • Habitually being in violation of traffic laws

The SR22 form that is filled out is subsequently turned into the DMV of your state, and acts as a system to ensure that you have an active policy.  The reason for this is not necessarily as a monitoring mechanism so much as it acts as an assurance that you can be financially liable for any costs associated with your violation.  This form and subsequent purchase of SR22 insurance is unavoidable, as you cannot have your license reissued without obtaining this type of policy first.  The length in which you need to keep SR22 car insurance varies depending on the violation.  The more severe the violation, the longer you will be required to carry the insurance.

Ways to Lessen the Blow

Obviously, high-risk insurance is not cheap.  Being involved in the scenarios that would require you to fill out Form SR22 is going to cause your premiums to leap.  But while an increase is inevitable, there are a few things you can do to help cushion the blow.  These include:

  • Increasing the deductable on your insurance policy.  This may be a touch risky if you get into another accident, so in order for this to be effective, you should make sure that you would have enough breathing room to pay the deductible in the event of a car wreck.
  • Obtain a practical, low-risk vehicle.  These types of vehicles will naturally carry lower premiums.
  • Talk to an insurance company to see about getting a discount.  Insurance carriers may give breaks based on factors like age and type of vehicle.  There’s no guarantee you would get a discount, but it wouldn’t hurt to ask.
  • Make one lump sum payment.  If you can swing a massive one-time payment as opposed to breaking up your premium in monthly installments, you’ll end up paying less over the course of the policy.

While all of these tips are fine methods on how to lessen the cost of a high-risk insurance policy, the best course of action is to take preventative measures when you get behind the wheel.  Don’t drink and drive.  Always have your insurance with you.  Obey traffic laws.  These steps could very well save you a lot of cash as well as a lot of grief.

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