What Is SR-22 Coverage?

Purpose

SR-22 bonds provide drivers with the minimum liability coverage allowed by state law. This coverage is typically designated for drivers considered high risk by either the court system, an insurance company or the state’s bureau of motor vehicles. SR-22 bonds are most commonly required after a DUI conviction, multiple accidents, at-fault accidents, for reinstating a license suspension or a failure to prove insurance coverage.

Coverage

The coverage for SR-22 bonds varies by state. Commonly, state minimum liability protection includes at least $15,000 for bodily injury, $30,000 for each accident and $10,000 for property damage. Many states require coverage for at least three years. SR-22 rates are generally higher than typical insurance policies given the nature of their usage.

Procedure

Whenever an SR-22 is required, either by court order or DMV mandate, a copy of the policy is filed with the state of issue. Proof of coverage is required to be carried by the driver in the vehicle. If coverage lapses due to non-payment or expiration, most states require the insurance company to notify the state of the lapsed coverage. This typically leads to automatic license suspension.

Claims

Having an SR-22 bond is not the same as having a comprehensive insurance policy. When a claim is made, the bond insures the other driver in an accident according to the limits. Any damages or theft to the policyholder’s own vehicle will not be covered in an accident.

Rates

SR-22 policies vary based on the individual’s driving record and the state of residence. Though rates for high risk drivers are typically more expensive than for good drivers, those required to carry an SR-22 policy can still shop around for better rates. Rates are affected by the nature of any citations or accidents on the driver’s record, the amount of coverage and sometimes the individual’s credit report.

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