Does an SR-22 Mean You’ll Lose Auto Insurance?

Getting an SR-22 penalty is not something most drivers want to experience. At a minimum, it will lead to challenges and changes to your car insurance coverage. In the worst situations, it can even lead to policy cancellations. Why does this occur?

For the duration of your SR-22 penalty, you must maintain car insurance. So, if you face a cancellation, you’ll still have to get coverage.

How the SR-22 Relates to Insurance

An SR-22 is a form that proves for your state’s driving authorities that you have active car insurance. Not everyone has to carry this form. You’ll get it if you commit serious driving offenses like DUIs, or driving without a policy. The penalty will essentially force you to carry a policy. That is because the state will now view you a high-risk driver. You’ll therefore need insurance behind you.

Yet, when you get the SR-22, your insurer will realize that you have high driving risks. They might have to raise your premium rates, or even cancel your coverage.

Why Cancellations Occur

You might wonder why an insurer can cancel your auto coverage after you get an SR-22. After all, isn’t the point of an SR-22 to force you to carry coverage in the first place?

The answer has to do with costs and risk factors.

When you earn the label of a high-risk driver, you’ll become more of a cost risk in the eyes of your insurer. The penalty will show the insurer that you have more of a chance of filing a claim. The insurer, therefore, will have a higher chance of having to pay out on a claim for an accident involving you.

Some insurers do not have the ability to maintain these high cost risks. They thus might have to cancel your insurance coverage. If they do so, you might feel a lot of uncertainty on what to do next.

How Your Insurer Can Help You

If your car insurance company cancels your coverage because of the SR-22, don’t fret. Your insurance agent will likely have options to help you obtain other protection. Many insurers will cover high-risk drivers, and some even specialize in this task.

So, as soon as the SR-22 occurs, notify your Santa Ana insurance agent. They’ll help you file the form, and help you adjust your auto coverage in case of any cancellations. Most agents quote multiple policies. So, they can help you find the new one that’s effective and still affordable. They’ll also help you keep the coverage active for the duration of the penalty. That way, you don’t experience any erroneous coverage losses.