Will purchasing an SR 22 policy raise my rates going forward?

February 14, 2023 Sophia Tucker

When it comes to purchasing an SR 22 policy, the question that often comes up is whether or not it will raise rates in the future. The answer to this question depends on several factors, including the type of coverage purchased, driving record, and the insurer chosen.

An SR 22 policy is a form of vehicle insurance that proves to the state that you are properly insured. It is usually required by drivers who have had their license suspended due to a serious violation such as a DUI or multiple traffic tickets. It is also commonly requested for drivers with poor driving records or those whose insurance has lapsed. In some states, an SR 22 policy must be maintained for three years from the date of suspension before canceling it.

When it comes to rates after getting an SR 22 policy, there are a few things to consider. First, if you already have car insurance and choose to add an SR 22 policy, your premiums might go up slightly due to the addition of additional coverage. However, drivers who are newly purchasing an SR 22 policy may experience higher rates than others because they may be considered high-risk drivers by insurers. This means they will likely pay more for their coverage than other drivers with similar driving records but without an SR 22 requirement.

In most cases, once the driver has completed their three-year period of maintaining their SR22 policy and fulfilled all requirements of their suspension agreement, they can cancel their SR22 coverage and switch back to regular auto insurance. At this time, many insurers will generally reassess their risk rating and adjust premiums accordingly based on current driving record and other factors like credit history etc., which could lead to lower rates going forward for those same individuals.

It is important when considering purchasing an SR22 policy that you shop around and compare multiple insurers in order to find the best rate available for your particular situation as rates can vary significantly between different companies. Additionally, make sure you understand all requirements related to maintaining your SR22 policy so that you do not jeopardize your license further by missing payments or having any lapses in coverage while fulfilling your agreement with your state’s DMV requirements.

In conclusion, purchasing an SR22 policy should typically not cause long-term increases in premiums going forward; however, it can depend on several factors such as type of coverage purchased, driving record and insurer chosen at time of purchase. As always when shopping for car insurance policies it’s advisable that you take time to research different providers and compare policies so that you get the best rate available for your situation at any given time.

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