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:

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:

How do I know that I am getting a quality SR22 quote?

Brendon

Thanks for asking, Brendon.

I know that when you go to those websites that give you a whole bunch of different quotes for just filling out one form, you might wonder if you’re getting a quality SR22 quote. The point of these sites, though, is not to give you every last bit of information you need, but to serve as a spring board on your hunt for a good insurance policy.

If you want a quality SR22 quote, then you first get a list of quotes from an instant quote site, and then you pick your favorite quotes and then go to the websites of those companies and fill out a quote form there to see what kind of deal you might get. If even that isn’t enough for you and you just don’t trust the internet, then you can take it a step further and also choose to call up the insurance company and get a quote talking to an agent online.

Another way to get a quality SR22 quote is to go through an agent or a broker. There are some limitations here, though, since these agents are only able to get quotes for you from a certain number of companies that they work for.

Cheers,

Fashun Guadarrama.

Reader question:

How can I get a cheap SR22 car insurance quote as a student?

Bely

Excellent question, Bely.

I love being a student because I can get a great SR22 car insurance quote, even though I am high risk. Let me tell you how: there are two excellent discounts for students which can take a huge chunk off of your auto insurance premium.

• Good grades.

This here is the biggest one that helps you with your SR22 car insurance quote. If you make great grades in school–most companies put it at a B average or above–then you can get a percentage discount off of your premium. The best I’ve seen has been 25% and the lowest 10%, so it’s a good deal anywhere.

• Leaving Mom and Dad.

Another great way to save on your SR22 car insurance quote if you’re a student is to check if your car insurance company gives discounts to students who go to school over a hundred miles away from home, and leave their car at home.

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.

Reader question:

What is the purpose of getting SR-22 insurance quotes if you’re going to pay high rates anyway?

Julia

Thanks for asking, Julia.

Even if you are going to be paying higher rates than usual for SR-22 insurance, wouldn’t you rather pay $100 a month than $200 a month? It may seem like a lot whatever happens when you don’t see any of the other quotes, but when you consider how relative quotes are to one another, it can make your head spin. Car insurance companies give out a wide range of SR-22 insurance quotes. One company might give you one quote, and another might give you a quote that’s as much as $800 cheaper.

The fact is, this happens all of the time. Most people think that there’s no point in searching around for good SR-22 insurance quotes because they’re already paying a lot and they don’t realize the big difference among quotes from different car insurance companies. Because of this, Americans, on average, pay $400 more for their car insurance premiums than they should. If these people had shopped around for car insurance quotes online, they could do something a lot better with that $400 than pay for their liability coverage.

Cheers,

Fashun Guadarrama.

Reader question:

Where can I get SR22 insurance help?

Gloria

Great question, Gloria.

If you are having a hard time understanding the process of becoming insured with SR22, or need assistance for some other reason, then you can get SR22 insurance help by hiring an auto insurance broker or agent, or even an auto insurance specialist. These people work to help customers find auto insurance quotes, determine the amount of coverage they need, and figure out what sort of discounts they are eligible for.

Also, when you have SR22 insurance, it is harder to have your application to be insured approved. If this is the case for you, you may need SR22 insurance help from a broker or agent so that they can locate a company for you that accepts high risk policy holders like yourself. These companies are not scarce, but the real challenge is finding one which will insure you, and do it for a good price.

Cheers,

Fashun Guadarrama.

Q: Should I compare rates on SR22 auto insurance?

A: What? Yes! Yes, of course you should! Do you know what will happen if you don’t? I don’t know, paying half of my salary for car insurance isn’t my thing. If you want to avoid that outcome, then you should really consider trying to compare rates on SR22 auto insurance.

You may find a cheap quote on the first form you fill out, but you should never go with simply the first quote. It’s only a small sampling of what’s out there, and there are so many car insurance companies, and all of them have different rates because they base their rating system off of different claims information.

If you decide not ot compare rates on SR22 auto insurance, then you will be losing big time. Studies have shown that the average American pays $400 too much on their car insurance policy–and that’s just for people with regular policies. Imagine it as around twice as much for someone like you who has an SR22 policy.

Q: When should I compare rates for high risk insurance?

A: Ohhh, good question. You need to compare rates for high risk insurance, but you don’t need to be spending every hour of the day doing it. At the same time, you want to do it often enough that you can catch the rate trends and changes. I suggest that, so long as everything in your situation otherwise remains the same, you should make sure to pull up some quotes around every six months to a year. Try to do it, anyhow, about a month before each time your car insurance policy is set to renew.

You may have some other opportunities to compare rates for high risk insurance, too. If something changes in your life which might push your rates up and down, you need to see how other companies would rate you for it. Some things which might have an effect on your car insurance rate are:

• you moved to a new zip code or even a new state
• you have added a new driver to your policy, especially a teenager or another high risk driver
• you have received a traffic ticket or you have gotten into a car accident
• you have gotten married
• you have retired
• you have bought a new car

Q: I’m going to start to compare auto insurance rates in Michigan, but I need to know what kind of coverage I need. What is it?

A: Michigan is a no fault state, which means that the amount of coverage you choose as you compare auto insurance rates in Michigan is going to be a little bit higher, although they say that no fault all in all makes the prices drop. You need no fault Michigan car insurance on your car no matter how much it is worth and no matter how often you drive it. Here are the coverages you need:

• Liability.

For liability coverage, you will need a total of $70,000. This breaks down into $40,000 per accident for injuries, $20,000 for individual injuries, and $10,000 for property damage. Liability coverage applies to damage which you have made, not damage done to you.

• Personal injury protection.

This protects you no matter where you’re at, whether you’re in your car, someone else’s, or just walking, so long as you are hit by a car or in a car accident. This is no fault coverage, and it will pay for medical bills, lost wages, and funeral expenses, among other things.