The Confusing SR 22

Compulsory insurance is one of those areas within motor vehicle law that tends to be confusing. We all need something, even if it’s just cheap car insurance covering only liability, but throw in the question of the SR 22 filing it can be downright baffling. Laws about SR 22 documents, when they need to be filed, and who is required to file them, are different from one state to the next. If you have questions about the SR 22 your best bet is to contact your state department motor vehicles or a lawyer experienced in traffic law.

As a general rule, the SR 22 is a legal instrument demonstrating to your state that you have some way of meeting your financial responsibilities in the event you cause an accident. Most states call this proof of financial responsibility. The SR 22 is filed by a car insurance company in some states, the individual driver in other states, or either one in still others. Some of the reasons you might be required to file an SR 22 include:

• multiple speeding violations, accidents, or DUI/DWI convictions
• car insurance lapses due to nonpayment of premiums
• license or registration suspensions
• inability to pay liability claims after accident

SR 22 from State to State

Just to show you how confusing SR 22 requirements can be we’ll use Iowa as an example. Iowa is unique in that it’s the only state with no mandatory insurance requirement. Iowa residents can purchase a car and drive it on the public roadways with only a valid registration and inspection. However, should a driver be involved in an accident must be able to prove to a court he have the financial means to meet any obligations that might result from his part in the crash.

Most Iowa drivers don’t take their chances. They purchase a liability policy and show their ID cards as proof of financial responsibility. Some other drivers will post a bond if they fell that is a better option.

Either way, if a driver is unable to furnish that proof he will be immediately required to obtain a liability insurance policy if he wishes to continue to drive. He’ll also have to file an SR 22 as proof that he has a valid insurance policy and that he has the financial resources to keep it in force throughout its entire term. The insurance company files the form for the driver when they are satisfied he can adequately meet his premium payments.

In the meantime, even if a driver is able to prove financial responsibility after an accident but his license or registration is suspended because of some violation relating to the crash, he may still have to file the SR 22 upon reinstatement of the license or registration suspension. If he has no insurance policy he’ll have to get one in order to satisfy the SR 22 requirement.

Confused? Just to add a little more, there are eight states that don’t have any SR 22 laws. Cheap car insurance is the proof of financial responsibility.

Length of Time

How long an SR 22 requirement remains in force depends on the individual state; a typical term would be 1 to 3 years. If you are currently driving under an SR 22 and move to a different state, you’ll need to contact both your old and new states to find out if you’re required to continue with the SR 22 until the end of its term. In some states you’ll be able to drop it; in others you’ll either continue or have a new one filed in the new state.

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