Need an SR-22 Verification Form?
An SR-22 is a certificate showing that the user carries a minimum amount of liability insurance. Unlike standard policies, the SR-22 rider is generally required following traffic infractions and is sent by the insurer directly to a state Department of Motor Vehicles. Many high-risk insurers who are getting into the field of Usage Based Insurance (UBI) will actively recruit SR-22 drivers because they are in a high risk group and can command higher premiums.
The benefit for SR-22 policyholders is that they may have an opportunity to lower the cost of their insurance by plugging in a telematics device to their vehicle’s on-board diagnostics (OBD-II) port. The technology in this unit monitors driving habits, speed, and mileage for the insurance company. Should a driver be able to prove that he or she is less of a risk, rates could be lowered compared to those who do not agree to the same level of monitoring. There are several insurers that offer discounted policies to higher risk drivers, although most of them charge some kind of fee for filing the SR22 form with your state DMV.
SR-26 For Termination of Policy
A new frontier in the field of telematics involves high risk policies and drivers who are legally required to have SR-22 forms in addition to their standard documentation. For example, the department of motor vehicles might insist on such a document following a drunk driving conviction, or even if your license and registration were suspended for not previously having insurance. Typically the document is in force for three to five years, and an SR-26 form is issued upon termination. Should the policy not get renewed, the State may suspend licenses and registrations associated with the certificate.
On a state-by-state basis, the name of the form has a few variations. In Illinois, it is called Financial Responsibility Insurance. In most cases the insurer has a direct communication with the appropriate state agency. Note that not all auto insurers will write SR-22 policies. Many of them see the certificate requirement as a black mark against the driver, and don’t want to add that person to their risk pool, which determines costs and profitability for the company as a whole. Some firms specialize in SR22 insurance because they know they can charge much higher premiums, and there is a group of people whose livelihoods depend on using vehicles.