How does SR-22 affect insurance rates?

Expect significant premium increases due to high-risk classification.

An SR-22 is not an insurance policy itself but a certificate of financial responsibility that some high-risk drivers are required to file. When a driver is required to obtain an SR-22, it signals to insurance companies that the driver is considered high-risk, often due to past infractions such as DUIs, serious moving violations, or being involved in an at-fault accident without insurance. This classification typically leads insurers to increase premiums to account for the heightened risk. The significant rise in rates is due to the insurance company's concern over potential future claims and the likelihood that a driver requiring an SR-22 might cost the insurer more in the long run.

Imagine you are Alex, and you recently had a DUI conviction. As part of getting your driver's license reinstated, you are required to carry an SR-22. When you go to renew your auto insurance, you find that your premium has jumped significantly from what you previously paid. This is because your insurance company now sees you as a higher risk and raises your rates accordingly to mitigate potential future claims.

If you need an SR-22, shop around to compare quotes from different insurance providers. Some may offer lower rates for high-risk drivers. Additionally, work on improving your driving record over time. Maintaining a clean driving history can help gradually lower your premiums, and once you've fulfilled the SR-22 requirement, your rates may decrease. Consider taking defensive driving courses or other driving-related educational programs to also potentially lower your insurance costs.