SR22 insurance is a unique type of product required by people with major driving violations. This particular type of insurance will allow you to keep your driver's license after a major violation occurs, but there are several things you should know about it before you purchase a policy. One of the main things involves the rules relating to time frame and lapses in coverage.
Time Frame For Insurance
In most cases, people that need SR22 coverage will need it for three years. You can find out how long your coverage is needed by reading the letter you received in the mail. When a person needs this type of coverage, the DMV will send a letter. The letter will state that you must get SR22 coverage by a certain date in order to keep your driver's license. It will also state how long the coverage is needed and the consequences of failing to get coverage.
2 Big Risks Of Letting The Policy Lapse
A policy lapse refers to a time when you fail to make your payment on your insurance, and this lack of payment causes the insurance policy to end. A lapse in coverage is never a good thing, even if you do not need SR22 insurance, but it is far worse if you do need SR22 insurance. When you allow your policy to lapse, you will be taking two major risks, which are:
- Your insurance company might decide not to renew your policy – SR22 coverage is insurance for high-risk drivers, and insurance companies use caution when offering these policies. If you let your policy lapse, you may discover that your current insurance company will not renew your policy, and this means you will have to begin shopping around for a different company.
- Your three-year period may start over – The other big risk you will take is that your three-year requirement period may start over when you resume the policy after a lapse. This may not be a big deal if you just acquired the policy one month ago, but it would be a major consequence if you have already had coverage for a year or two.
As with any car insurance policy, it is always a good idea to shop around for quotes, because this is the only way you will find the most affordable policy. If you are interested in learning more about SR22 coverage, contact a car insurance agency today.
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