Colorado SR22 High Risk Auto Insurance Finantial Responsibility Information
After a driver’s license suspension or revocation, the State of Colorado Department of Revenue Division of Motor Vehicles requires a person to file an SR-22 in order to reinstate their driver’s license. Simply filing an SR-22 does not automatically result in the reinstatement of driving privileges. It is a separate action from any court action/case, even after all fines and court costs are paid. The Colorado DMV (department of motor vehicle) reinstatement procedure must be precisely followed in order to regain your driver’s license.
License suspension and revocation is shared within all 50 states, and does not relieve you from maintaining the SR-22 even if you relocate to a different state. Some people cancel their policy after relocating to a different state, assuming that they no longer need it. This is a mistake. Moving to a different state will not relieve you from your obligation to maintain the SR-22. In general, the SR-22 must be maintained between 1-3 years. Please note that DMV (department of motor vehicle) does not notify drivers when their suspension period has ended. The original letter that you receive from the DMV states the beginning and ending dates that you must carry the SR-22. Once the financial responsibility requirement has been imposed upon a driver, he or she must comply. Failure to comply will result in revocation of the driver’s license and a minimum mandatory jail time of 5 days up to maximum of 6 months, and a fine of $50 - $500.
An SR-22 is an endorsement (rider) to an existing insurance policy. It cannot be purchased by itself, as the form itself is not an insurance policy. The SR-22 form is a guarantee by your insurance company that you will obtain insurance for a certain period of time. In other words, it is a monitoring or tracking device. If the policy lapses, the insurance company notifies the Colorado DMV when an individual’s insurance policy has been cancelled, lapsed or has not been renewed by filing an FR-4 or SR-26.
The SR-22 can be purchased with a vehicle (owner-operator) or without a vehicle (non-owner policy). The SR-22 can also be purchased in addition to an existing auto policy (non-owner) without any interference with the existing carrier. Underwriting criteria for insurance companies are different. Not all insurance companies accept a non-owner policy if there are any vehicles in the household. Therefore, the agent must be familiar with the underwriting of the particular company that he/she deals with.
Minimum mandatory insurance coverage for the State of Colorado is:
- $25,000 bodily injury for one person in one accident
- $50,000 for two or more persons in one accident
- $15,000 property damage incurred in one accident
STATUTORY PROVISIONS SR-22 PROOF OF FINANCIAL RESPONSIBILITY
CRS 42-7-408. Proof of financial responsibility - methods of giving proof - duration - exception.
(1)(a) Proof of financial responsibility for the future, when required under this article, may be given by the following alternate methods:
(I) Proof that a policy of liability insurance has been obtained and is in full force and effect or that a bond has been duly executed or that deposit has been made of money; or
(II) Securities as provided in section 42-7-418.
(b) Proof of financial responsibility for the future in the amounts provided in section 42-7-103 (14) shall be maintained for three years from the date last required and shall be furnished for each motor vehicle registered during that period; except that, if during such three-year period the insured has not been licensed to drive pursuant to this title, the insured shall be credited with the non-licensed time toward the three-year period.
(c) Notwithstanding the three-year requirement in paragraph (b) of this subsection (1):
(I) If an insured has been found guilty of a driving offense pursuant to section 42-4-1301 (1) or (2) (a) or if the insured's license has been revoked pursuant to section 42-2-126, other than a revocation under section 42-2-126 (2) (a) (I.5) or (2) (a) (IV), only one time and no accident was involved in such offense, proof of financial responsibility for the future shall be required to be maintained only for as long as the insured's driving privilege is ordered to be under restraint, up to a maximum of three years. The time period for maintaining the future proof of liability insurance shall begin at the time the driver reinstates his or her driving privilege.
(II) If an insured has been found guilty of a second or subsequent offense of driving with an alcohol content of at least 0.02 but not more than 0.05 while under twenty-one years of age under section 42-4-1301 (2) (a.5) or if the insured's driver's license has been revoked because of a second or subsequent offense pursuant to section 42-2-126 (2) (a) (I.5) or (2) (a) (IV), proof of financial responsibility for the future shall be required to be maintained only for as long as the insured's driving privilege is ordered to be under restraint. The time period for maintaining the future proof of liability insurance shall begin at the time the driver reinstates his or her driving privilege.
(2) The term of the policy of liability insurance or the bond submitted as proof of financial responsibility for the future shall be for a minimum of three months.
(3) If an insured's driver's license is cancelled pursuant to section 42-2-125 (4), and after such cancellation neither a court of competent jurisdiction nor an administrative hearing officer determines that the charges have been proved, the insured shall not be required to comply with the proof of financial responsibility requirements stated in this section.
(4) If at any time when insurance is required to be maintained in accordance with section 42-4-1409 or this article it is not so maintained or becomes invalid, the director shall suspend the driver's license of the person who has not maintained the required insurance and shall not reinstate the license of such person until future proof of financial responsibility is provided in accordance with section 42-7-406 (1).
(5) Repealed.
(6)(a) Upon receipt of evidence from an agency of another state or foreign jurisdiction that a former Colorado resident has obtained a license in such state or foreign jurisdiction, the director shall suspend the requirement for proof of financial responsibility for the future until such time as the former resident has made application for a new Colorado license.
(b) If such former resident makes application for a Colorado driver's license, the director shall reinstate the requirement for proof of financial responsibility for the future until such time as the original requirement to maintain proof of financial responsibility for the future has expired.
At Wessell insurance, we have placed well over 5000 SR22 policies in 40 states. No matter what your situation is – we can help. Give us a call today at 866-663-7561, or fill out the quote request form, and we’ll contact your quickly. Once you purchase your policy, you’ll have the documents in hand within one hour to present the same-day for license release.
DO NOT ALLOW THE SR-22 HIGH-RISK AUTO INSURANCE TO LAPSE!
For additional information regarding Colorado financial responsibility SR-22 high-risk auto insurance contact:
Colorado Division of Motor Vehicles
1881 Pierce Street
Lakewood, CO 80214
Phone: 303 205-5600
