Virginia SR-22 / FR44High Risk Auto Insurance Financial Responsibility Information
Mandatory Insurance Coverage
In the State of Virginia, it is illegal to operate motor vehicles, motorcycles, mopeds or golf carts on Virginia roadways without liability insurance coverage. It is also illegal for any motor vehicle owner to allow anyone else to drive the vehicle without insurance. Every state mandates specific limits of liability insurance. Some states may refer to it as mandatory liability coverage; others may call it compulsory coverage.
Minimum mandatory insurance coverage for the State of Virginia is:
■ $25,000 bodily injury for one person in one accident
■ $50,000 for two or more persons in one accident
■ $20,000 property damage incurred in one accident
Virginia requires uninsured and under-insured motorist coverage.high-risk auto insurance policy in order for the license to be reinstated.
VIRGINIA INSURANCE AND SR-22 / FR-44 REQUIREMENT INFORMATION
The state of Virginia, as well as many other states, subscribes to the SR22 system of communication. Within this system, the state can track and monitor individuals deemed high-risk, or that have an outstanding violation or other legal issue of significance. A driver’s license is the tool that Richmond will use to leverage your compliance. If an SR22 policy is put in place, and maintained for the required period of time, the license is released and remains valid. If the SR22 policy lapses due to non-payment, or is cancelled prematurely, the state is notified, and the license is put back into suspension. The SR22 policy needs to be written to state minimum liability, with or without a vehicle attached.
As of 01/01/2008, a change was enacted to enhance the SR22 system in Virginia. If an individual is involved in an alcohol related violation, an FR44 (FR-44) will be required by the state, an upgraded form of an SR22. If the violation occurs after 01/01/2008, or if a current SR22 requirement extends beyond this date, an FR-44 filing is required. Basically, the state minimum liability limits (25000/50000/20000) will be doubled to (50000/100000/40000) to qualify the FR44. This extra liability coverage will be needed whether or not there is a car on the policy. The FR-44 system is identical to the current SR22 in nature, there is just more coverage required. The state of Virginia has determined that this increased coverage will further protect the public, and is currently the only state that has enacted these higher than normal limits. If you currently hold an SR22 in Virginia due to an alcohol violation, and the requirement period extends past 01/01/2008, you will need to call us to upgrade your limits before your renewal. A letter has been sent to the individuals affected.
At Wessell Insurance, we can take care of your SR-22 / FR-44 requirement quickly, easily and discreetly. If there is a car that needs insurance as well, we can find the right policy to cover everything within our A rated group of companies. If you have a vehicle that is already covered, we can get a named-operator policy for you on the side, so as not to interrupt your existing coverage. Either of these examples will take care of the state and your license.
Who are high-risk candidates?
They are individuals who exhibit poor driving habits interlaced with risky behavior. These habits are most often displayed when operating a motor vehicle while intoxicated or in an unsafe manner. Speeding, reckless driving and accumulation of at fault accidents, multiple citations for various violations indicate a high-risk level of behavior.
Statistics have shown that individuals with poor credit ratings tend to report more claims as well as those who have difficulty financially maintaining continuous auto insurance coverage.
Finally, education levels and environmental factors play a large part in defining high-risk individuals. Again statistics show that city residents tend to have more accidents due to high population levels than those who live in suburban or rural areas. Sex, age and gender also determine high-risk insurance needs. Younger males exhibit riskier behavior.
Women have fewer risk factors than men. Ultimately, the insurers and the DMV determine an operator’s requirement for SR-22 / FR-44 high-risk auto insurance.
What is High-risk SR-22 financial responsibility insurance?
An SR-22 / FR-44 insurance policy is a rider to a high-risk auto insurance policy. It is a guarantee, by the insurance company, that the driver has and will keep in effect at least the very basic mandatory liability insurance for a specific period of time. It is a mechanism for the State of Virginia to monitor the driver’s responsibility to obtain and maintain an SR-22 insurance policy. Not all insurance companies can or will provide SR22 / FR44 insurance coverage.
How can an operator reinstate a suspended license?
To comply with the State of Virginia’s requirement, a simple remedy would be to purchase liability insurance utilizing the Virginia minimum requirements in filing an SR22 / FR44high-risk auto insurance form with the State DMV. These policies may be one of two types:
An owner policy – an insurance policy that provides liability coverage for the owner’s personal vehicle will be described in the insurance Declaration sheet. It can also be written and issued with collision and comprehensive coverage. Full coverage, uninsured motorist, underinsured motorist, medical payments, towing and rental car payments may also be covered with additional premiums.
A non-owner policy – also known as an operator policy is an insurance policy that provides basic mandatory liability coverage on any vehicle that the policyholder operates but does not own. For example, it may be a friend’s vehicle or a company car used on the job. This policy may be written exclusive of existing insurance. In other words, if other vehicles in the household have existing insurance, this policy may be issued discretely to satisfy the Virginia SR22 / FR44 high-risk auto insurance requirement. Your current insurance carrier does not need to be notified of your requirement for high-risk short term SR-22 / FR44 insurance coverage. If the carrier discovers extreme violations, the premiums may be increased or the policy may be cancelled.
These policies are issued by an agent in cooperation with an acceptable insurance company licensed to operate in the State of Virginia. After the policy is issued, the insurer’s main office electronically files an SR-22 high-risk auto insurance form with the Virginia DMV Department of Financial Responsibility on the insured’s behalf. The issuing agent also files an SR-22 / FR-44 insurance form with the State of Virginia and the insured receives a copy of the SR-22 certificate form along with the policy and proof of insurance cards. Both Owner and non-owner SR-22 high-risk insurance policies can also be written for motorcycles.
Another form of compliance to indicate financial responsibility would be to purchase a bond in the amount specified by the State of Virginia – usually between $30,000 and $50,000. An authorized surety or insurance company may issue the bonds.
The Virginia DMV determines the length of time that proof of SR-22 high-risk auto insurance must be provided based on the seriousness of the violation(s). The timeframe can be between 3 – 5 years. However, if carried for 36 consecutive months without any additional violations the requirement for SR22 / FR44 insurance may be terminated.
It is imperative to keep the policy in effect. The insurance company closely monitors the policy and if the policy lapses or is cancelled, Virginia DMV will immediately suspend the license for this reason alone. Reinstatement fees and penalties are then assessed at a higher cost to the driver.
DO NOT ALLOW THE SR-22 HIGH-RISK AUTO INSURANCE TO LAPSE!
For additional information regarding Virginia financial responsibility SR-22 high-risk auto insurance contact:
Virginia Department of Motor Vehicles
P.O. Box 27412
Richmond, VA 23269
Phone: 866-368-5463, 800-435-5137
