What Is an SR22?
An SR-22 is financial responsibility insurance that is often ordered by the courts or government entities to show that you have proper financial insurance. The SR-22 requirement for each state is different, but it is often required if a person's driver's license has been suspended for various reasons. The SR-22s are filed by the insurance company with the state showing you have vehicle insurance.
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Requirements Vary by State
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In Illinois, SR-22s are required for problem drivers by law, where notices are filed directly with the secretary of state's office. The insurance is required for motorists who have had their driver's license suspended, have unsatisfied vehicle-related judgments against them in court, and who have three or more convictions for mandatory insurance violations. The coverage of an SR-22 runs between $20,000 for a person killed or injured, $40,000 for two or more persons, and $15,000 for property damage.
DUI Focus
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In Oregon, the requirements for an SR-22 are slightly different. There, a driver must purchase an SR-22 if he has failed to provide proof of liability insurance, been convicted of driving without insurance, been involved in an uninsured accident, applied for a hardship or probationary permit, or had driving privileges reinstated following a driving under the influence suspension. In California, a SR-22 must be purchased if a driver is arrested for DUI.
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Three-Year Requirement
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In many states, like Illinois and Oregon, SR-22s must be maintained for 36 months. If the SR-22 lapses, the insurance company must notify the secretary of state where the SR-22 was issued. Your driver's license will be suspended until it is renewed the 36-month clock starts over. SR-22 requirements will also follow you from state to state. If the driver has an SR-22 in one state, she will be required to keep the SR-22 up to date to receive and maintain a driver's license in her new state.
Filing Fee
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States will also require a one-time filing fee for keeping your SR-22 on file. These fees are normally $25, but some states can charge more. The filing fee is for an individual claim. For example, if your insurance policy covers you and your spouse and your spouse also needs an SR-22, you will need to pay a filing fee for that person as well. If you default on your SR-22 and renew it, you will have to pay the filing fee again.
Alternatives
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Some states may allow you to file an alternative to an SR-22 as proof of financial responsibility, but it will come at a cost. In Illinois, the driver may deposit $55,000 with the state treasurer's office. The driver can also file a surety or real estate bond with the court of record.
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