0 What is an SR22 Insurance Policy?

If you have been in an accident and did not have car insurance, you probably have been asked to provide an SR22 to your state's Department of Motor Vehicles in order to keep your drivers license.  An SR22 is a form provided by an insurance company that tells the state that you have purchased auto insurance.  This is also known as a financial responsibility filing, or in some states as a FR-44.

Most states require the SR22 filing because of circumstances that may have happened while operating a vehicle.  It may be required to have a driver's license reinstated after a DUI, an at-fault accident while driving without insurance, getting too many tickets in a short period of time, or any other instance where a person's driver's license has been suspended or revoked. 

The SR22 insurance policy is simply a policy that complies with the state's minimum requirement for liability limits.  An SR22 insurance policy will offer liability coverage in order to compensate others in the event of a judgment.  This limit can also vary state by state, so be sure to check your state's regulations when purchasing an SR22 insurance policy.

Fortunately getting an SR22 insurance policy can be easy, although expect to pay more than you would without the financial responsibility requirement.  Go to one of the online quote sites to look for a policy.  These sites can make it easy to find a reasonable policy that meets the SR22 requirements. Most of the insurance companies that offer SR22 insurance can also provide an electronic document sent straight to the state showing you have purchased the policy, although it is always a good idea to get one in writing.

Once you get an SR22 insurance policy, make sure you keep it in force.  If the policy is cancelled for any reason, the insurance company is required to notify the state, and your driver's license may be suspended or revoked again. If required, the SR22 will be necessary to carry for 3 -5 years, depending on the laws of the state. It would be unwise to start the period of time over again because you forgot to pay for the policy.  If you do not own a car, ask your insurance company about a non-owner SR-22 policy.

Having to provide an SR22 to the state in order to keep your driver's license can be embarrassing, but can be done with a little work.  Find a good company to provide you with an SR22 insurance policy, be careful driving, and after the requirement is over, shop your car insurance around to get a better premium.

0 How to Read Your Car Policy

One of the largest exposures of financial risk for the average person occurs once they get behind the wheel of their automobile.  Once you pull out on the road, there are millions of drivers out there; some of them may not have the best of training.  You may be the best driver in the world, but it's not you that you need to worry about; it's the teenage texting her boyfriend about their breakup last night, or the woman who didn't have time to put on her makeup this morning because she is running late, or the late night party-goer who had maybe a few too many.  No matter how careful you may be, there is always the potential of an accident.  Let's take a look at your typical auto policy and see how to read what it will do for you before the time comes.

First get your policy out and look to the page marked "Declarations".  This gives a synopsis of the coverages in your policy.  The first thing to look at is the make, model, and year of the vehicles listed to make sure they are correct.  Sometimes insurance companies omit listing one of your cars, or fail to change vehicles on the policy when you buy or trade for a new one. Rule of thumb is: if it's not listed, it's not covered!

Secondly, look to the liability limits listed on the declarations page.  It will either have a single number, like $100,000 combined limit, or 50,000/$100,000 limits.  This tells you how much coverage your policy provides in the event you are sued for an accident.  The liability coverage is not one of the higher priced items on the policy, so it's better to have more than less.

Next, if you have purchased comprehensive and collision coverage for your car, look to the deductibles listed.  Both coverages pay for repairs to your vehicle in the event of loss, but for different reasons.  An easy way to tell the two apart is that the collision pays as the result of a collision; car hits a car, car hits a tree, etc.  Comprehensive pays for everything else, and is sometimes listed as "Other than collision".  The deductible is the portion you pay first to have repairs done to your car.  For example, if the repairs are $2000 and the deductible is $500, the insurance company will pay $1500.

The next coverage to look at is uninsured motorist coverage, which compensates you in the event the other person in the accident is at fault and does not have insurance.  And yes, it happens a lot more than you would think.

Medical payments coverage pays for medical expenses to you, your family, or others in your car in the event of an accident.

Lastly you have the ancillary coverages like towing and rental car reimbursement, which are self-explanatory.

Take the time to read your automobile insurance policy.  After an accident happens is no time for surprises.