There is more to a car accident than a quick bump. It sets off a series of events, including the shock of the collision, information exchange, contacting your insurance provider, and ultimately realizing the repercussions.
However, being informed that they need to purchase SR-22 insurance is one of the most perplexing and stressful experiences for most car owners.
But what, if anything, is actually involved? And how does an accident alter your existing relationship with auto insurance? Our goal is to shed light on this often confusing topic. Read on!
It’s Not Insurance; It’s a Certificate of Responsibility
Insurance for SR-22 is not a separate type of insurance. Rather, it's a proof of filing that's submitted by your insurance company to your state's DMV to confirm that you carry the minimum state-required liability coverage. Simply a binding contract to maintain insurance coverage.
Usually, an SR-22 policy is required after committing serious traffic offenses that indicate you are a high-risk driver.
The primary causes that trigger such an SR-22 policy include:
• Driving Under the Influence (DUI/DWI)
• Reckless driving
• Driving without insurance in an accident
• Several accidents caused by fault or traffic citations in a short period of time
• Licence suspension or revocation
Now, where does an accident relate to this scenario? If a crash occurs when one is uninsured or when a material violation occurs, it calls into question one’s ability to maintain consistent, quality coverage.
An SR-22 acts as a guardian to check on one’s coverage for a period of three years after an accident. If coverage ceases during this period, a notification to the state will automatically result in a license suspension.
What Happens to Your Coverage and Premiums After an Accident?
Here’s a breakdown of what typically changes after an accident:
At-Fault Matters Most:
If you aren’t at fault, your premiums will go up. Being at fault increases the risk. Having one at-fault accident can cause your premiums to go up by as much as 31-45%, according to insurance data. This number varies by accident severity and geographic area.
The More Severe, the Multiplier Effect:
A minor fender bender will not affect your pocketbook as much as one involving injuries. The larger the claim size, the greater the perceived risk, which means larger premium increases.
Potential Non-Renewal of Insurance:
In the wake of a serious at-fault accident and with previous traffic incidents, your insurer can opt for a non-renewal or non-extension of your policy at the expiration of your current policy. This leaves your insurance fallback options in the non-standard market or high-risk category, and hence, your premiums will be high, including the
Finding Car Insurance After A Crash:
This is where things get a little tricky. When shopping around for car insurance after crash, you need to be completely upfront about what happened. You may find fewer options or receive higher quotes, but that is not the end of the process. Many companies specialize in covering high-risk drivers and can also handle the SR-22 filing if required, helping you stay legally insured and get back on the road.
Navigating the New Normal: Practical Steps
Here's how you can take charge and proceed:
• Keep Calm, but Don’t Delay: Although an SR-22 may be a barrier, it won't stop you from living your life to the fullest.
• Seek Specialists: It always pays off to find insurers that know everything about SR22 car insurance. They understand the SR-22 filing process and can offer much lower premiums than other insurers, especially for higher-risk drivers.
• Treat It as a Reset: View the SR-22 period as a required new beginning. Drive responsibly, strictly follow all traffic laws, and do not violate any traffic laws again. Your clean driving record during the period will be your greatest strength in lowering your premiums.
• Discounts: Always enquire about any discounts, such as full pay, paperless billing, and passing a defensive driving course, despite the high-risk work environment.
Your Path Forward
Being involved in an accident can be daunting and lonely, but you are not alone. It may be difficult to navigate SR-22 insurance, but the first step to taking back control and proceeding with confidence is to grasp the basics.
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