SR22 Insurance Policy

Reader’s Question:

What is an SR22 insurance policy?

Andre

Washington, DC

SR22 insurance policy is a type of proof of financial responsibility that is required for those who were caught driving uninsured cars. However, this proof of financial responsibility is not really an insurance (although it is often referred to as such). The SR22 only provides an assurance that the person carrying it can be financially responsible in case an incident requires him to have such responsibility.

Normally, if a person commits a traffic violation or gets caught in a car accident, the police will ask him to show any proof of financial responsibility (often in the form of car insurance). If the person fails to show any proof of this responsibility, the police will give him a citation for violating the car insurance law. The person will then be asked to purchase an SR22 insurance that has a validity of 3 years or less. The SR22 insurance can be purchased from a car insurance company who specifically sells it (not all companies sell an SR22). These companies are responsible for updating the state insurance regulator about any changes in the SR22, such as cancellation or termination. Once the validity of the SR22 ceases, the person holding it must be able to show to the court his own insurance policy. If he fails to do so, the court may give him another sanction.