FREQUENTLY ASKED QUESTIONS ABOUT AUTO INSURANCE
Q. What is an SR22?
A. AnSR22 is a proof of insurance certificate that is filed by an insurance company with the Department of Motor Vehicles upon the request of the insured. SR22 filings are usually filed for up to three consecutive years.
The purpose of an SR22 filing is to monitor and ensure that a driver maintains auto insurance coverage for a period of up to three years. If a driver is required to file an SR22, he or she must have their insurance company file the SR22 with the Department of Motor Vehicles as evidence that the driver has an active insurance policy in force. If the insured does not pay the premiums required to keep their auto insurance policy active, the insurance company will cancel the insurance policy and in turn, will cancel the SR22 filing with the DMV by filing an SR26.
There are a few states that do not require an SR22, such as New York, New Jersey, Massachusetts, or North Carolina, but the ones that do – for example Nevada, or Florida, may require them for any of the following offenses:
- No insurance violations
- Major convictions
- No insurance at the time of an accident
- License suspension
- Too many points on license
- Unsatisfied judgments i.e. child support
Q. How does an SR22 insurance filing work?
A. An SR22 filing is an endorsement (addendum) to an auto insurance policy (it does not have to include an auto). This filing provides communication from the issuing insurance company to the DMV of the state involved. As long as the policy stays in force, your license will remain valid until you serve the required time. Once the required time has been served, the state will dismiss any restrictions on your license.
Q. How is an SR22 insurance policy issued? Can I do everything over the phone?
A. Wessell Insurance Services will shop the available insurance companies in your area, and notify you of the best terms we found. Once the policy is in place, Wessell Insurance Services issues the SR22 to the state, or to you directly, within a few minutes. This will facilitate the release of the restriction on your license, and keep the SR22 in force for the duration of your requirement. The entire process can be completed within 20 minutes by phone if you use a credit/debit card. We will fax or email to you all the necessary documents for your signature shortly after the policy is issued.
Q. Can I use a “Non-Owner” SR22 insurance policy if I own a car and already have insurance?
A. Yes, and no. Depending on the state that you reside in. A non-owner policy can be purchased if there are no automobile registered in your name, and that applies to all states. However, a non owner policy can be purchased if there is a vehicle/s in the household, but not registered to your name. The exception to this rule is a husband and wife who own a vehicle. In that scenario, the vehicle has to be listed.
in some states a broad form can be purchased, in addition to your existing policy. How ever, there are only a few states that offer a broad form policy with an SR22 endorsement. Please contact us for specific information regarding a broad form policy to see if that suites your situation.
A “non-owner” SR22 policy is usually the least expensive alternative, and by far our most popular product.
Q. What if I no longer live in the state that is requiring the SR22 insurance filing?
A. You are still required to carry over the SR22, even after you have relocated to a different state. Simply by relocating to another state, does not relive you from your obligation to carry the SR22. You can satisfy the SR22 requirement for any state, no matter where you live. In most cases, a “non-owner” SR22 policy will be the only option. This can be accomplished easily with by phone, just like any other auto policy, through Wessell Insurance Services.
Q. What Does Auto Insurance Cover?
A. Auto insurance is designed to cover and assist the policyholder in recovery from financial losses as a result of property damages, bodily injuries and liabilities. Also to protect vehicles against other perils such as theft, vandalism. There are many different types of coverage, and each one compensates the policyholder in a unique way. Most common is the liability policy, which most states require drivers to purchase in order to legally operate a motor vehicle on the roadways.
Q. How Many Types of Car Insurance and coverages Available?
A. Liability: This is one of the most common types of policies. There are two parts to this coverage. The first is Bodily Injury. This will cover a third party for bodily injuries sustained up to the specified limits as a result of a traffic accident where the policyholder is found to be at fault. The second part is Property Damage. This will pay for any damage to another person’s property caused by the insured while operating a vehicle. This does not only pay for damages to cars, but may include compensation for incidents where a fence or home is damaged as well. The minimum requirements vary with each state. For example, Arizona’s minimum limits are $15,000 for bodily injury to one person, $30,000 for bodily injury to two or more people and $10,000 for property damage. These limits are relatively low when compared to the cost of medical care and the costs of repairing or replacing vehicles. It may be wise to consider raising the limit when purchasing a liability policy.
Comprehensive and Collision: This is a common addition to a liability policy, and when comprehensive and collision insurance and liability insurance are combined it is often referred to as “full coverage”. Unlike liability, comprehensive and collision insurance covers the insured’s vehicle. This includes collisions with other vehicles, objects or animals, theft, fire, vandalism, windstorms, flying objects, broken windows and hail. There is usually a deductible involved when purchasing this coverage, most commonly in the amount of $250, $500 or $1,000. This is the amount that the insured would have to pay in the event that they file a claim. The amount of the deductible chosen will directly affect the price of the premium. The higher the deductible, the lower the premium and vice versa.
No Fault: Some states follow the no fault system. This means that the insurer will pay the policyholder and their passengers for medical expenses, loss of wages and other injuries, regardless of who was found to be at fault, up to the policy limit. This coverage is also known as PIP (Personal Injury Protection).
Uninsured/underinsured Motorist: This insurance compensates the insured for bodily injury caused by motorists who do not have coverage, are underinsured or commit a hit-and-run offense. There are states that make this insurance a requirement; but even when it is not required, it is a beneficial addition to a policy.
Medical Payments: The insured is compensated up to the policy limit for medical expenses and/or funeral costs that result from an accident.
Rental Car Coverage: This insurance pays for the cost of a rental car in the event that the policyholder files a claim and must have their automobile taken to a repair facility for repairs, or if their vehicle is stolen. There is usually a set amount paid per day, and it usually covers up to 30 days.
Roadside Assistance: These plans vary, but usually include towing reimbursement, tire service (mounting a spare tire), battery service, emergency gasoline supply and locksmith services. Some plans offer perks like discounts on rental cars and theme parks.
All of these types of policies can be beneficial. One should carefully evaluate their situation to determine which types of policies are best for them to purchase and which policies they can go without. The best choice in coverage is one that is affordable, yet offers the most extensive protection.
Q. Who is Considered High Risk?
A. Drivers who are convicted of driving under the influence or drunk driving are instantly categorized as a high-risk driver with no previous warning. Many people who drive drunk once will probably do it again. Insurers aim to prevent this by giving more drastic punishment, in addition to what the law and courts issue.
The combination of a fast car and some traffic incidents (tickets and/or accidents) could get these drivers the high-risk label as well. Automobile insurance companies assign all drivers a level of risk based on their driving record. The lower the risk, the more likely that driver will be offered insurance and at a lower price. A driver with a past history of accidents coupled with driving a fast car has the potential to be involved in another accident, and will be given a higher risk level than someone who has a clean driving record and drives a mini-van.
Other people who may find themselves in the high-risk category are those who live in certain areas considered dangerous. These areas are where cars are often stolen, vandalized, or where generally more accidents happen than in other areas. Although these issues have nothing to do with a driver’s ability to drive safely, they reflect a higher chance that the insurance company will need to pay for repair or replacement of the vehicle.
Q. Does High Risk Driver Pay Higher Premium?
A. Yes, drivers with a faulty driving history (known in the auto insurance field as high-risk drivers) will eventually find an insurance company that will agree to insure them and their vehicle. However, these drivers usually end up paying expensive premiums for their policies compared to other drivers on the road. Insurers know they will more likely pay out more claims with high-risk drivers, so in order to make a profit insurance companies charge them more. Drivers in the high-risk category may experience frustration as they try to move on and establish safer driving habits and cleaner record. This frustration can be alleviated when drivers have a better understanding of what they need to do to improve their situation and get lower rates.
Q. How Can I Lower My Risk Level?
A. Once placed in a high-risk category, it is difficult to get out of it. It will take time and effort, but it will be worth it. When the risk level is lowered, premium rates will decrease as well. To lower your risk level means avoiding future tickets and accidents. This may involve reducing your driving as much as possible by taking the bus or other mass transit, or carpooling with another person. Any tickets recently received should be taken care of by taking the appropriate driver’s education class to prevent them from being placed on a permanent record. Pay any fines or old tickets so they’re not on the record either.
Basically the best way to lower risk level is to do the opposite of what put you in that category. New drivers should work on their driving skills very cautiously so as to not to risk additional tickets or accidents, and wait for time to pass.
Even as a high-risk driver, you should still compare rates to find out which company will give you the lowest price. While it may not seem obvious, you too can save money by comparison shopping and taking advantage of discount opportunities.
