What is an SR22 bond?
SR22 bond is a type of unconventional car insurance applicable for drivers who have defaulted frequently such as those who have been booked for DUI. This insurance allows such drivers to come up to the minimum insurance requirements. For instance if a driver’s license has been suspended due to a DWI or DUI case, he or she will require an SR22 form to get the license reinstated.
The bond is basically a tool to cover people who might fall into trouble because of the problem driver. If the driver has an SR22 insurance, potential victims can directly claim and collect compensation from the insurance company rather than waiting for the problem driver to file a claim.
States Where SR22 Is Not Required
There are a few states in US where an SR22 is not ordered by the courts but you may opt for it. The states under reference are Delaware, Minnesota, Kentucky, New Mexico, Pennsylvania and Oklahoma. Residents of these states are given SR22 as an option if they wish to retain their license after a default. If you are currently in a state that requires SR22 and you move to a state that doesn’t, it is your responsibility to go ahead and fill the SR22 bond. In case you have been ordered to maintain SR22 insurance for the next three years, moving to a state that doesn’t need SR22 insurance does not do away with the requirement of keeping an SR22 for the stipulated time.
States Where SR22 Is Not Offered
Residents of New York or North Carolina do not require SR22 bonds. These states do not have this option. In case you have moved to either of the two places from another state, you may face problems in maintaining an SR22 bond because most of the insurance companies do not offer such bonds. In such a case, you will have to appeal to the state that issued the order for SR22 which can be a lengthy process. However what stands for a fact is that the order will not be negated.
Disadvantages of an SR22 Bond
If you have been ordered to maintain SR22 insurance, you get labelled as a problem driver and the insurance companies raise their premiums for you. In rare cases, the premiums may even double themselves. No matter how much you dislike maintaining an SR22 bond, it is a necessary expense if you want to prevent suspension of your driving privileges.
Time Frames for SR22 Bonds
The state will order you to maintain a SR22 bond for a specific period of time only. This period is 3 years in most cases however, it can be more also. The duration for which you are required to maintain an SR22 bond depends upon your default history and the state you reside in.
There is a huge likelihood that if you have been caught driving under influence or have had excessive tickets, you will be required to maintain a SR22 bond insurance. The bright side of maintaining a SR22 bond is that till the time you pay your premiums in time, you will be allowed to retain your driving license. Defaulter drivers should consider SR22 as a second chance and not a hassle imposed by the state. Had there been no SR22, such drivers would have got their driving license annulled altogether.
How to Find Cheap SR22 Bond Quotes
Finding cheap SR22 bond quotes is not so easy. Driver operators that may require SR-22 insurance for obtaining back again their own driving permits are usually considered as high-risk drivers. That’s why getting an SR-22 bond insurance can be expensive but still possible to get one. Some tips:
- You must contact a competent insurance website who is associated with many different insurance agencies. This will help you to get information about various types of SR 22 bonds available and get cheap quotes
- Identify qualification requirements to obtain specific reductions
- Obtain only minimal liability insurance recommended from the state rules
- Do a comparison of quotes provided by a variety of insurance organisations which provide specifically SR22 bond.
SR22 Bond insurance is also another term used for an SR22 insurance. However, in some states is it a surety bond or deposit. An SR22 bond policy is a filing, files by a car insurance provider in your state. This form is used to prove that you have the required liability insurance in your state. This is generally mandated to confirm to the state your financial responsibility when operating a car after getting a citation for a DUI / DWI or non insurance.
States mandate financial responsibility requirements and you need to be able to provide proof financial responsibility every time you drive a vehicle.
Most states permit at least 1 of the following items to be used as your financial responsibility:
- Auto insurance policy
- Surety bond
- A State Motor Vehicle Department certificate for money or government bonds for a set amount on deposit with the State Treasurer
- Proof of financial responsibility certificate
Not every states permit SR22 bonds for auto insurance. Usually, it’s utilized to provide proof of financial responsibility and satisfy the insurance requirements of the state. An SR22 bond wouldn’t be advised to cover you when working at a dealership. You might need to be covered within business policy or commercial car policy.
Typically, the sr22 bond must be maintained for three years in most States, but there are some circumstances that it must be maintained for a period equal to the duration of the suspension of the license. If you are informed that you will need to carry an sr-22 due to violation of the law, you may contact the Department of Motor Vehicles (D.M.V.) to check the duration of the period that you will need to carry the sr-22.