Reader’s Question:

Do I have to keep insurance on my vehicle which was recently stolen?

Feline

Newark, NJ

I would suggest that you speak to your insurance agent to determine how long you will need to keep the insurance on your car that was recently stolen. If you have comprehensive coverage which you are putting in a claim for your stolen car, typically, you would want to keep your car insurance policy in effect until the settlement is complete.

It could be that your vehicle will be recovered before your settlement is finalized and your car will come back to you. If this does happen you will want auto insurance to still be covering it so that you do not have a lapse in insurance for the car.

If you continue to pay insurance on the car and it is not recovered, this might result in an overpayment of your insurance premium. If this happens, discuss the issue of a refund with your insurance carrier.

Reader question:

What serves as DMV SR22 proof?

Michael

Good question, Michael.

The only thing that serves as DMV SR22 proof is the SR22 form. Most of the time, you’ll only see this when you sign it, and then your auto insurance company will either file it electronically or will mail it to the Department of Motor Vehicles. With some companies, though, you may be required to carry the SR22 form to the DMV office with you when you go to reinstate your license.

The SR22 form is the only DMV SR22 proof of insurance, and nothing else can be used to reinstate your license. You cannot use your insurance card, a letter from your auto insurance company, none of that. The SR22 is a special form which allows communication to be kept up with your auto insurance company so that your license can be suspended if you don’t pay.

When driving, however, the regular forms of proof will work, instead of your SR22 form. You should keep your insurance card in your vehicle at all times in case you are pulled over by a police officer.

Cheers,

Fashun Guadarrama.

Reader question:

What are the DMV SR22 costs?

Ashley

Glad you asked, Ashley.

The DMV SR22 costs vary depending on the state. There are a couple of things that you need to pay, mainly the fines and fees for reinstated your driver’s license. The best thing to keep your DMV SR22 costs down is to make sure you only pay these fees and fines one time. You can make sure of that by paying your SR22 policy consistently and making sure you never lapse, and staying out of trouble so that your driver’s license is not suspended again.

There are many ways your policy can lapse. If you decide not to pay your SR22 policy, then you are usually given a grace period, but if the payment is not made during that grace period, then the car insurance company will send the DMV an SR-26 form. An SR-26 form is a form which cancels out the original SR-22 form. In order to get back on track, not only will you have to pay the fees and fines to get your license reinstated once again, but you will also have to pay another charge with your auto insurance company to file the SR22. This usually costs around $30.

Cheers,

Fashun Guadarrama.

Reader question:

I have to do SR22 DMV filing for my brand new car. What kind of coverage do I need?

Melvin

Thanks for your question, Melvin.

When you buy a new car, you will typically need more coverage with your SR22 DMV filing than usual. Rather than just buying liability coverage–or no fault coverage on top of that, if you live in a state that requires it–you also have to purchase comprehensive and collision insurance.

These are not options. Your contract will require that you purchase these types of coverage, which means that your SR22 DMV filing will also cost more. If you want to save some of that cost, you can cut your premium down by raising the deductible on both of these coverages. I keep my deductible at $1000, but some companies allow you to go higher. Whatever the case, if you only have a $500 deductible, you will probably be paying too much for insurance coverage.

A more expensive deductible might seem like a burden, but I handle it like this: for the first year that I have the higher deductible, I keep “paying” the same rates. I just keep the extra that I saved by raising the deductible and put it into savings so that, by the end of the year, I will have a good start on the money I need to cover that deductible if I ever get into an accident.

Cheers,

Fashun Guadarrama.

Reader question:

I have DMVsr22 insurance. Do I need coverage for my own injuries if I cause an accident?

Amber

Glad you asked, Amber.

There is a type of coverage, called personal injury protection, which takes care of your injuries if you are the negligent party in a car accident. In some states, usually no fault insurance states, personal injury protection is require by law, along with liability coverage. For the rest, though, it is still an option available.

However, you should consider what other options you have before adding personal injury protection to your DMVsr22 policy. Do you have health insurance? Then you might be able to avoid buying auto insurance coverage fo rinjuries and just cover any injuries you get from a car accident caused by you by using your health insurance coverage.

Of course, this has drawbacks. Your health insurance coverage only covers your medical, but if you add personal injury protection to your DMVsr22 policy, you can get wages for the days you miss work as well.

Cheers,

Fashun Guadarrama.

Reader question:

I have an SR22 suspension. Do I have to get uninsured/underinsured motorist coverage?

Alice

Thanks for asking, Alice.

I’m not sure, on the legal end, because I don’t know what state you are from. You should check with your insurance provider to see if underinsured/uninsured motorist coverage is required where you live, because in a few states it is.

From a practical standpoint, though, uninsured/underinsured motorist coverage is an excellent addiion to your SR22 suspension policy. In many states there is a large number of people who are driving without insurance for whatever reason, and so if you get into an accident with one of them and it’s their fault, how are you going to cover your injuries or your repairs for your car? Since they don’t have an insurance company, the only thing you would be able to do is sue.

This is where underinsured/uninsured motorist coverage comes in. You don’t have to panic and can get your injuries mended and car fixed right away instead of suffering through a legislative process. In many cases, your insurance company still ends up suing the other driver for the money they spent on you, but by this time you’re long out of the problem.

Cheers,

Fashun Guadarrama.

Reader question:

What is SR22 filing good for? Can’t I just drive a friend’s already insured car? I don’t even own a car.

Bill

I’m glad you asked, Bill.

The point is, Bill, that SR22 filing is what you need to be licensed to drive. If you don’t file an SR22, then you don’t have a license, and therefore you can’t even legally drive. If you drive without a license, then you risk getting pulled over by a police officer and found out, and then getting into even more trouble than you already are. If you think you miss your license now, imagine getting pulled over for driving without a license. You may even get your vehicle impounded.

If you don’t own a vehicle, then no owners SR22 filing is what you need to do. This type of filing allows you to purchase liability auto insurance which will apply to any car that you drive, so long as you don’t own it. It costs more than usual, sure, but at least you’re driving legally, and as long as you shop around for quotes onlin you won’t come out that bad.

Non owners SR22 is also pretty great because you are still covered by the insurance of the car you’re driving. Drive only cars with full coverage insurance, and you’ll probably never have to use your own policy.

Cheers,

Fashun Guadarrama.

Reader question:

What is an SR22 form? How long do I need one for?

Greg

Thanks for asking, Greg.

An SR22 form is what you need to file with your department of motor vehicles to receive your license after a temporary suspension. How long you have to file it for can depend on varying factors, but the most common length of time that a person is required to file an SR22 form for is three years. In most states, you are under probation for five years, but the SR22 requirement is lifted after you have filed SR22 for only three. If you don’t choose to file SR22 insurance until two years in, then you will still need to file for three years. If you wait three years, then you only need to file for two. If you wait five years, you don’t have o file at all…you get the point.

There are some exceptions. For example, in Texas an SR22 is what, required for two years? Yes, it is two years in Texas, and the only state with the two year requirement. In all states, you’re likely to see the number of years you are required to file rise if you are convicted for drunk driving the second, third, fifth, etc., time.

Cheers,

Fashun Guadarrama.

Reader question:

What is an SR22 for teens?

Grace

Great question, Grace.

An SR22 is what, for teens, will allow them to get their driver’s license reinstated by the Department of Motor Vehicles (or Public Transportation, or whatever it is called in your state–the place where you go to get driver’s licenses) after it has been suspended for such violations as drinking and driving, driving without insurance, accruing too many points from traffic tickets, and so on.

Teen insurance cost a pretty penny, so an SR22 is what will really put you over the edge in terms of cost. That is why you should make you sure you get your teenager the right kind of car.

The right kind of car for a cheap teen insurance policy is one that is not too small or too big, but just in the middle. It’s at least a few years old; new enough to have safety features, old enough to be inexpensive, basically. It does well on safety crash tests. It has plenty of airbags. It is a sensible car, not a sports car.

Once you buy your teen, or have them buy, the right car, you also have to make sure they are listed correctly on the policy. Be sure to specify that your teen is the main driver of that car, because if you don’t the insurer will put them with the most dangerous and expensive car, making your rates shoot up.

Cheers,

Fashun Guadarrama.

Reader question:

Can you tell me the reason for SR22 rates being so high?

Mark

Excellent question, Mark.

SR22 rates are high because of one word. It starts with an R. Did you guess it? It’s RISK. Risk is the four letter word that makes the insurance world go round and sends all of us risky individuals running to empty our wallets. The entire business is built on risk, because that’s how they make money. Think about it: if a car insurance company covers damages for car accidents, an only insures non risky individuals, then the chances of it actually having to pay out for that coverage are very small. They make more money that way.

Now, you are considered risky for SR22 rates for many reasons, and one of those is that SR22 is associated with drunk driving, and so you are going to get higher rates for that. In addition to that, there is a charge for filing the SR22. Depending on the company, this can be just a small charge or a very expensive one.

Cheers,

Fashun Guadarrama.