If you were involved in an accident without any proof of insurance or recently convicted of a DUI or another serious traffic offense, then chances are you'll need an SR-22 on file with your insurer. But what if you recently sold your vehicle and opted for other means of transportation? The following not only answers this important question but also provides some good advice for anyone in the same position.
No SR-22, No License
SR-22s are also known as "Certificates of Financial Responsibility." In short, an SR-22 provides your state of residence with concrete proof that you're carrying at least minimum liability auto insurance coverage as mandated by your state of residence. If you live in Florida or Virginia, you may need an FR-44 instead of an SR-22, although both certificates are essentially the same.
A judge may order you to have an SR-22 filed on your behalf as a condition of keeping your driver's license valid. If your auto insurance policy lapses or you decide to cancel without having another policy lined up in its place, your insurance provider will immediately notify your state's DMV office. Without proof of insurance, the state DMV will suspend your driver's license until you're insured once more.
In essence, no insurance also means no license for mandated SR-22 holders. But selling your vehicle also means you won't need traditional auto insurance coverage. It's a catch-22 situation that can easily lead to premium increases and fewer insurance options, not to mention the prospect of having your driver's license suspended until you've reinstated your insurance.
Non-Owner Insurance Offers an Alternative
If you no longer have a car but still need to maintain auto insurance coverage due to SR-22 requirements, a non-owner auto insurance policy offers a viable alternative to traditional insurance. A non-owner auto insurance policy ensures that you'll stay in your state's good graces by maintaining its minimum liability requirements for licensed drivers. In short, you'll get to keep your license, and your SR-22 will remain active for as long as your state mandates it.
There are other advantages to having non-owner auto insurance. If you frequently borrow or rent other vehicles, you'll have liability coverage of your own. In many cases, your own coverage can help supplement the owner's liability coverage. Non-owner auto insurance policies are also significantly cheaper than traditional auto insurance with a covered vehicle. However, keep in mind that having an SR-22 on record places you in a higher risk category, resulting in higher annual premiums when compared to normal auto insurance policies.
For more information on SR-22 filing, contact your auto insurance group today.