Cheap car insurance and SR-22

Driving is a privilege. When you do something to have your license revoked it is usually a game changer. You might feel trapped, as if you are no longer independent. Yes, you can ride the bus, walk, ride a bike, or ask friends and family to get your form here to there. By the time you have the chance to get your license back you are ready to do almost anything.

You will probably have paid a hefty fine, and may even need to take a safe driving course. (The safe driving course should help you secure relatively cheap car insurance.) For most states, the 'almost anything' is proof of liability insurance. You will probably need proof of insurance in order to get your license re-instated even if you no longer own a car. Generally, you will need to carry that insurance for at least 3 to 5 years despite not owning a vehicle. In that time you are required to buy a non-owners policy, sometimes called a SR-22. SR-22 is the document that some states require you to carry at all times when you are driving, along with your license.

Most insurance companies sell non-owners policies. They usually go to people who have lost their license, or someone who travels a lot and uses rental cars, borrowed vehicles, or vehicles they do not own for several days a month or multiple weeks per year.
Non-owners auto insurance policies are a liability policy. You are insured for any damage to property or to a person that you inflict resulting from a collision you caused. Like all auto insurance you pick the maximums you think are best for your situation. Remember that liability limits mean that is the maximum dollar amount that the insurance company will pay for a claim, not the maximum amount awarded, or total costs of an accident. If you choose a policy that has maximums below the actual costs, what you own privately may be used for compensation to the injured parties.
SR-22 or non-owners policy is not a collisions policy. It does not cover the cost of repair to the car that you were driving. Nor do they cover an automobile that is registered in your name or one that the owner's residence is the same as yours.

If you recently re-gained your license and are looking for cheap car insurance, make sure the company you choose conforms to the SR-22 requirements of your state.

0 comments:

Post a Comment