Factors That Affect Car Insurance Rates – SR-22 and SR-50

Factors That Affect Car Insurance Rates – SR-22 and SR-50

What are the factors that affect car insurance rates? SR-22 and SR-50 forms affect these rates, and this piece shows you how.

Getting cheap car insurance is the main goal of many US motorists. But factors that affect car insurance rates make getting a great deal rather elusive.

Among the major factors influencing car insurance rates are SR22 and SR50 requirements. If you’re required to possess these requirements, you may have ask a question like how long does an sr22 last? Or what does an SR50 require for completion?

What Is An SR22?

SR22 is usually mistaken for a special kind of insurance policy. Even if SR22 has different functions in some states, like Ohio, it is not an insurance cover plan.

SR22 is a form that can only get attached to an existing insurance policy to ply state roads. Several states have different policies governing SR22, but the function largely remains constant.

For instance, in the state of Indiana, SR22 provides proof of a motorist’s minimum 25/50/20 basic liability requirement. On the flip side, defaulting motorists in Ohio need to possess an SR22 to prove their 12.5/25/7.5 minimum liability requirement. 

When Do You Need An SR22?

Only the state authority or a judge can ask drivers to file an SR22. Court-ordered SR22 filing processes usually take off after a judge orders it during a hearing. On the other hand, a state-ordered SR22 usually starts off from the DMV or BMV of your location.

Many motorists do not need to file an SR22 with the state. Special occasions require drivers to file an SR22.

Here’s a list of situations where drivers may need to file an SR22;

  • Application to get a probationary license
  • Drivers caught driving without an active insurance policy
  • DWI/DUI conviction
  • Getting involved in a car crash without a running insurance policy
  • Involvement in too many at-fault violations, even with an insurance policy
  • Numerous offenses and violations in a short period
  • Reinstatement application after a driver’s license revocation or suspension

How Do You Get An SR22?

The best step to get an SR22 filed is to call your insurer. An active insurance policy is necessary to get an SR22 successfully filled.

In some cases, you can comfortably add an SR22 filing to your policy. Some insurers are willing to file the SR22 on your behalf. A copy of this form will also get sent to you by mail.

Drivers without an active policy have to buy one or activate a deal with their former insurer. On the flip side, note that not all insurers offer SR22 filing for their customers.

Ensure you select an insurer with support for smooth SR22 filing.

How Much Does An SR22 Cost?

Many insurance companies charge a single-time filing fee for the entire process. In most cases, the payment doesn’t exceed $25.

On the flip side, defaulting motorists who need to file an SR22 will have to pay more in premiums. Most insurers consider drivers with a hovering SR22 issue as high-risk. And many policy providers will keep premium rates of SR22 drivers high until the holding period elapses.

How Long Does The SR22 Last?

In some states, the SR22 certificate spans three years. Suspending or canceling your policy this period may result in a lengthy extension. Aside from the extension, most state vehicle departments will suspend your license, making legally plying state roads impossible.

Your driving privileges will remain sealed until you renew an existing insurance policy or buy a new one.

What Is SR50?

Across US states, Indiana is the only state to have SR22 and SR50 filings. The SR50 is also a certificate motorists require to ply state roads. It also stands as proof that motorists meet Indiana’s 25/50/25 minimum liability coverage requirements.

Indiana’s BMV verifies all information motorists have alongside the SR50 when;

  • A driver engages in an accident which the Bureau of Motor Vehicles receives a report about 
  • A ghastly car crash likened to a felony or misdemeanor occurs
  • A violation within twelve months of two other violations occur
  • Another violation by a previous offender who fails to provide financial responsibility proof

A motorist in Indiana that fails to provide proof of financial responsibility usually has his/her license suspended for a year. If such an event occurs, drivers will have to pay a re-instatement fee (prices revolve around $200 – $300).

After this, the defaulting driver’s insurer has to file an SR50 form. The state BMV receives this form and processes it accordingly.

Final Word

There’s a huge collection of factors that affect car insurance rates. But when it comes to SR22 and SR50, this piece has all the info you’ll ever need.

Consider making the most of this info to guarantee an excellent deal on your insurance rates. Even if you’re in the midst of an SR22 or SR50, you’ll come out better with this info cache hassle-free!

Share This Post

Post Comment