If you have been in serious trouble with your state Department of Motor Vehicles (DMV), chances are, your driver license has been suspended or at worst, revoked. A license suspension is lighter because the state DMV will still give you a chance to go on the road again. Once you’ve paid the penalties and fines as well as faced all punishments for your driving misdemeanors, including incarceration, the state DMV might lift your license suspension. However, this comes with the condition for you to submit a SR 22, otherwise known as a Statement of Financial Responsibility.
An SR 22 is a document that your car insurance provider will submit to the DMV as proof that you have a car insurance policy that will provide general and liability insurance coverage as financial protection if you are to drive again.
However, have awareness that the cost of the car insurance policy referenced by the SR 22 certification would be higher. Simply because this time around, the insurance provider considers you a high risk driver.
SR22 Insurance: Compare Quotes and Find Cheap Coverage
Actually, not all insurance providers in all states or territories are open to issuing and filing a SR-22 on behalf of a high risk driver. While they may offer traditional auto insurance coverage, not all insurance providers would go as far as certifying your bankability as a financially responsible person. The price quotes will likely be different, while finding a cheap SR22 insurance coverage won’t be a breeze.
Actually, an insurance policy backing up a SR22 certification could cost more than a traditional car insurance policy. More often than not, state DMVs will require a SR22 insurance policy with liability coverage amounts that are way beyond the minimum required in their jurisdiction.
In some states, such as Texas, a SR 22 is officially known as a Statement of Financial Responsibility Insurance Certificate. This denotes that the provider of the insurance policy also made sure that the financial risks to which they are exposed as insurer, have been reduced or properly covered through insurance premiums.
In Florida, the state DMV requires the submission of a FR44 or a separate certification of a rehabilitated driver’s Financial Responsibility status.
What Exactly Does Financial Responsibility Mean?
Basically, to be financially responsible means to live within your financial means. First off, the insurance provider will consider if you are currently driving a type of car for which you can afford to pay the insurance premiums.
The insurance analyst may perform an assessment of your financial responsibility traits, which would include the manner by which you save and manage your financial resources and assets. To earn positive ratings, you should manage your money and assets in ways that will produce the most beneficial results for you and for those who depend on you.
Hanging out in bars, pubs, casinos or gaming arcades over engaging in productive and healthy activities such as sports or workouts, will likely garner poor ratings in terms of financial responsibility.
Excessive credit card spending, while maintaining credit balance that continuously earn interests and past due penalties, is not a good indication of financial responsibility either.
Unpaid monthly bills, missed monthly rentals or home mortgage payments are also poor indicators of financial responsibility.
Have awareness that if background checking will turn up with such results, an insurance company will think twice, or even refuse to issue a SR22 certification for a car insurance policy.