Filing An Insurance Claim

« Back to Home

Tips For Saving Money On SR-22 Insurance

Posted on

When you are required to purchase an auto insurance policy that includes SR-22 coverage, you might be afraid that the costs for the policy will be a lot higher than you would like them to be. While it is true that SR-22 policies cost more, it is important to know why they cost more, and it is important to understand what you can do to save money on your SR-22 insurance policy.

The basics of SR-22 coverage

SR-22 is a form of high-risk auto insurance, but it really does not refer to the actual insurance coverage you have. It instead refers to a document that proves you have auto insurance. People generally need SR-22 policies after experiencing a lot of traffic violations or one major violation, such as a DUI. It is something that you would need for three years, in most situations, and the three years must be consecutive. Without getting SR-22 insurance when you need it, you will lose your license and can face other types of penalties.

Why it costs more

The main reason it costs more to purchase an SR-22 insurance policy is that people who need this coverage are high-risk drivers. If you got a DUI, you are automatically considered a high-risk driver, and high-risk drivers always pay more for their auto insurance. The second reason it costs more is because the insurance company providing the insurance takes on the responsibility of notifying the DMV when you get the policy and if your policy lapses.

Ways to save money on your policy

If you want to save money when purchasing a policy, there are several different things you can do. First of all, you could reduce the amount of coverage you have. It will cost less for your premiums if you have less insurance coverage. Secondly, you could increase the amount of your deductible, as this will naturally cause a decrease in your rates. Additionally, you can shop around by contacting multiple insurance companies to ask for quotes for SR-22 coverage. Finally, you should set up automatic payments for the insurance to avoid a lapse in coverage, as having a lapse will cause your rates to be even higher.

There is no way around getting SR-22 coverage if you need it, but there are ways to save money. You can find out more about this type of coverage by speaking with a place like the Illinois Insurance Center Inc.