The financial burden that an SR22 represents can be very costly. For most drivers that need to file an SR22 it is the result of driving under the influence. While this may not be the scenario for everyone it is likely that you are in that group. No matter the reason for the SR22 you are likely going to pay more for auto insurance than you did before. I will help by giving you five ways to lower the cost of sr22 insurance.
First we need to understand what is an SR22 and some common requirements from state to state. Each state is different and not all states require you to file an SR22. The SR22 filing is an add-on to your auto insurance policy that confirms you carry the minimum liability insurance for that state. If the policy is ever cancelled the insurance company will notify the department of motor vehicles which can make you start the reinstatement process over.
Be sure to know how long you are required to carry the SR22 so you don’t make that mistake. Typically you will be required to carry it for 3 years or more depending on your court ordered reinstatement.
Here are 5 ways to reduce the cost of sr22 insurance:
- Carry liability only – By only having liability insurance this can save you 50% on the auto insurance. This may not be a viable option for those drivers who finance or lease a newer car since the bank will require full coverage. By stripping down the policy to only the required coverage can save you hundreds of dollars per year. Once you are no longer required to carry the SR22 you can add the full coverage back at any time.
- Buy SR22 motorcycle insurance – This may not make much sense but if you have a motorcycle it can save you a lot of money. You can get quotes from other insurance companies than your current one for motorcycle insurance including an SR22. Your current company may not be informed of the citation that caused the required SR22 so your insurance rates should not change. By having liability insurance on a motorcycle with the SR22 it will meet all the state requirements and potentially save you thousands of dollars. Once the reinstatement requirements have been met you can cancel the motorcycle policy or move it to your original carrier.
- Buy an older sedan – When you have a new expensive car the insurance on it can be very costly especially if you are required to carry full coverage by the lender. Buying an older car that is not financed can dramatically lower your auto insurance cost by not having to carry full coverage as well as the reduced cost to insure the year of car. Get a domestic sedan that is over 10 years old to see the most savings on insurance premiums.
- Combine all your policies into one company – Most companies offer big discounts if you have them insure your home and cars together. This could save you another 15-20% per year. If you currently have all your policies with one company ask them if there are any other discounts you might be eligible for.
- Shop around – This is an obvious but often overlooked option to reducing your SR22 insurance premiums. Most people will go with their current carrier but you could save hundreds of dollars with another company. Some companies rate differently when it comes to DUI or other major violations which could save you a bucket of money.
Tips to Find Cheap SR22 Insurance Online
It doesn't matter which state you live in there are always auto insurance companies that want your business. This is very important considering when you need to file an SR22 with the state it is most likely going to increase your auto insurance rates due to the nature of the violation. The fact is that some insurance companies just don't want certain drivers given their driving history. Instead of just denying your business they will increase the rate to a point that most drivers will not purchase from them or if they do it will bring in enough premiums so they can offset the risk.
Why does this matter to you? Well when you need to get SR22 insurance some companies will be a lot more costly than others. This is why it is important to compare rates from other carriers in your area. Here are a few tips to find cheap sr22 insurance:
Don't assume certain insurance companies will always be cheaper than others.
Most insurance commercials you see on TV today want you to think they can save you money. These companies are going on the basis that the average customer has saved a certain amount when switching to them during the last year. While these companies can probably save you money it may not be the lowest available price. Always get quotes from multiple insurance companies including the leaders in your area.
Don't compare apples to apples!
This may not make sense because you are always told to get apples to apples comparison but just hear me out. Believe it or not some companies actually offer better discounts with higher coverage limits. I know for a fact that a few big name insurance carriers will offer a lower rate on a package of higher coverage because they know that is a customer they want to have. Make it a point to ask for higher coverage limits to see how the rates change from company to company.
Do compare auto insurance rates often.
The insurance industry is like a roller coaster, different companies experience losses and rate changes at different times. This is why it makes sense for an insurance company to raise your rates because they may have lost money in your area due to high number of claims. That is a great time to compare other companies to see if their rates are any better.
