Difference Between SR22 & Liability Insurance
All states that require car insurance include liability insurance as part of the basic coverage, even states that use no-fault insurance instead of the tort system. An SR-22 is purchased through your car insurance company, but is otherwise not related to insurance at all. An SR-22 is used in instances where extreme violations are involved, or to deal with people who habitually drive without insurance.
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Personal Injury Liability
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Personal injury liability is one of two types of insurance coverage required in most states. Driving a vehicle in a state the has a minimum insurance requirement means that you have purchased some type of injury liability coverage. In states that use the no-fault system, also called Personal Injury Protection, the focus of the coverage is on treating injuries and reducing the backlog of court systems by limiting the use of the judicial system to mediate accident claims.
Property Damage Liability
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The other commonly required form of car insurance is property damage liability. This type of coverage is not included in no-fault insurance, but it can be purchased as an additional insurance rider and may be part of the mandatory minimum requirements. Where bodily injury coverage is focused on treating injured people, property damage liability pays to correct damage caused by you to the property of another person or company.
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What Is an SR-22?
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An SR-22 is not an insurance policy. The full name of an SR-22 is "SR-22 Statement of Financial Responsibility," which more accurately defines what the certificate is used for. If you are convicted of a serious driving offense, such as drunk driving, or have been labeled a habitual offender for something like failure to carry insurance, you can be ordered by the court or your state's Department of Motor Vehicles to carry an SR-22 for a period of time.
SR-22 Requirements
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If you are required to have an SR-22, you are compelled to have it for a period of time ranging from one to five years, depending on your state laws and the nature of the offense. Once you are required to have an SR-22, you must keep it valid throughout the period, even if you do not own a vehicle. In this event, there is a special non-driver form of the SR-22 that can be purchased separately. Failure to maintain an SR-22 can result in the suspension of your driver license or the revocation of your vehicle registration, among other things, as defined by your state motor vehicle laws.
Auto Insurance and an SR-22
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An SR-22 does not take the place of having the minimum required car insurance for your state. You must still purchase the required insurance and then purchase an SR-22 in addition to it. According to the Michigan Department of Insurance, you purchase the SR-22 through your insurance company which then submits a proof of the purchase to the Department of Motor Vehicles.
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References
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