An SR22 costs a lot of money, and quite rightly so. In most cases, people who have to file an SR22 are those who have had a DUI against them, and they are likely to have had their license revoked for a period of time. This also means that insurance companies will see you as someone who presents a higher risk than others, which in turn means your insurance premiums will be higher.
What Is SR22 and What Does it Mean?
Each state has its own requirements and laws surrounding SR22 insurance. However, in all states, it is basically an add on to regular motor vehicle insurance that proves that you have paid for the minimum liability insurance that is required by law in your state. If this policy is cancelled, for instance if you have a missed payment, then the DMV will immediately be notified and your license will be revoked. At that point, you will need to start over with the reinstatement process, including having to pay the associated costs again. Usually, you will need SR22 for at least three years. So how do you keep the costs down?
Keeping the Cost of SR22 Down
There are five options for lowering your SR22 costs:
- Take out the minimum insurance requirements, which is generally liability only. This could save you as much as 50% on your policy. However, if your vehicle is financed or leased, you will usually be obliged to take out full insurance.
- Buy a separate motorcycle insurance certificate, and take out the SR22 on that. Strangely, this will be a lot more affordable than taking it out on your motor vehicle insurance. So much so, in fact, that it may be cheaper for you to buy a second hand bike and take out the insurance than it would be to simply take out car insurance with an SR22.
- Buy an older car, because these are always cheaper to insure. This is because the car itself is worth far less money, which means an insurance company will never have to pay much should you have to write it off. A sedan of at least 10 years is generally the cheapest to insure.
- Have all your insurance policies with one single company. If you insure various different products through one company, it is likely that they will give you a significant discount, sometimes as much as 20% per year. You may have products such as home insurance, life insurance, income protection insurance and more. Placing these all with the same company could help you save hundreds.
- Shop around. This should go without saying, but you always need to compare the market so that you can find the best deal out there for your personal needs. Use the internet to your advantage, speak to a few brokers and generally use shoppers’ common sense.
Having SR22 insurance is expensive, but it need not cost you the earth.