Is the DMV requiring you to have an SR22 filing? How much will SR22 insurance cost you? We discuss the factors that affect price (and more) here.
If car insurance premiums are stressing you out, you've got company.
About 72% of Americans say that finances are something they worry about every day. Having enough money to pay the bills and still enjoy a good quality of life can seem impossible.
When expenses like car insurance rise but your income stays the same, it can be scary. The good news is that there are ways to lower your monthly premiums, and it's a lot easier than you might think.
Read this article if you're worried about covering an SR22 insurance cost. We'll break down the different price factors and discount opportunities so that you can find an affordable rate.
How much does it cost to get SR22 insurance? Take a look to find out!
What Is SR22 Insurance?
Before we dive into the different costs of SR22 insurance, let's briefly review what the coverages do. An SR22 is a type of certificate.
The certificate helps prove that you have the right liability coverage in place. There are standard certificates and nonowner policy coverages.
In some instances, you'll be able to add an SR22 liability certificate to your existing car insurance policy. Insurance providers who are willing to work with SR22 holders can even apply for you!
Of course, not every company will be willing to let their drivers carry an SR22 certificate. If your current provider isn't ready to make adjustments, they'll notify you that you have to shop for a new policy.
Starting a new policy means beginning from scratch. You'll need to get multiple quotes to compare the best rates available.
Common SR22 Insurance Cost
If you've already been searching online to find out what SR22 insurance costs, you probably see a lot of different numbers. Some people will tell you that they pay under $500 for their coverage, while others find themselves paying over a thousand.
Finding all the contrasting numbers cannot be obvious and determine what they mean for you. The rates for SR22 car insurance can also be broken up into different ways. To help simplify things, you'll want to understand what goes into calculating the rates in the first place.
Navigating the Different Price Factors
How do insurance companies come up with the rates for your SR22 coverage? It begins with your personal information.
Your age, occupation, location, and driving experience impact your insurance premiums. Even if you didn't need to file for an SR22, your life factors would still affect your rates.
If you have a squeaky clean driving record, apart from the one incident that caused the SR22, this can also affect your rates. The clean your driving record is, the easier it'll be to find affordable premiums.
Other price factors that you'll run into include homeownership, club affiliation, and driving needs. Homeowners will typically be able to find more affordable rates since they're seen as more financially responsible.
The more financially responsible an insurance company thinks you are, the less of a risk you'll present. If an insurance provider believes that you'll pay your premiums on time and do your best to drive responsibly, they'll be more likely to cover you with an affordable premium.
Explore Savings Opportunities
If you don't own a home, that doesn't mean you're instantly excluded from discount opportunities. Being a part of different clubs and organizations can help you receive all sorts of discounts too.
Often AARP members get discounts from insurance providers, and it's usually less than $20 to sign up. If you volunteer or are a part of any organization that helps the community, there might be a discount opportunity.
When speaking to insurance agents to get quotes, ask them to explore every discount available. Be ready to provide all of your personal information so that the agent can exhaust all of your incentive opportunities.
Defensive Driving Discounts and Experience
You can also ask insurance agents about defensive driving discounts. If there's an online defensive driving course or local course available, it might be worth your time to take it. You might get significant savings on your insurance by proving that you completed the defensive driving course.
Finally, how long have you been driving? If you're a new driver who has to obtain an SR22, you cannot do a lot to lower the premiums. New and young drivers almost always have to pay high rates.
The good news is that as you gain more driving experience, insurance companies will see you as less of a risk. Remember, premiums go down when risk factors decrease.
Car Details Impact Insurance Premiums
Another factor that will affect your SR22 price is the type of car you own. If you own a vehicle with safety features, it'll be easier to get a lower rate.
However, if you own a red sports car, you're probably getting some of the most expensive rates. The safer your vehicle is, the better your insurance premiums will be.
Of course, whatever car you have right now probably isn't going to change. People don't usually switch their cars to adjust their insurance rates. If your quotes are coming back high, and you suspect your car may be the blame, then you can look into changing the coverages.
Pick the Right Car Coverages
One thing that makes your car insurance premium expensive is the type of coverage for your car. Car insurance covers a lot more than your vehicle.
Car insurance covers liability for bodily injury and property damage, and it can even help pay for your medical bills. Of course, the insurance also helps pay for damages done to your car.
The coverage for your actual car is one of the most expensive coverages to carry. If you're the sole owner of your vehicle and you're not making payments on it, you could look into adjusting your coverages.
SR22 Full Coverage Insurance Cost
If you're carrying full coverage, you will have a high premium. Full coverage includes comprehensive and collision coverages.
Comprehensive coverages will pay for things such as vandalism or storm damage. Whereas collision coverage is going to help cover damages from a collision. Out of the two coverages, collision is the most expensive.
If you have an older vehicle that's not worth much money, you might consider dropping the coverage. However, ask your insurance agent for their opinion before making any changes.
Carrying full coverage for an old vehicle usually doesn't make sense financially. If you were in an accident, you'd still have to pay a deductible, and the insurance payout wouldn't be huge.
Insurance companies don't pay out for vehicle damages past the vehicle's value. So if you have a car worth less than $3,000, you probably don't need collision coverage.
On the other hand, comprehensive coverage can be more tricky. Sometimes comprehensive coverage can help pay for replacing your windshield, and a deductible might not even be required.
Get quotes with and without collision and comprehensive coverage. Find out the price differences and ask the insurance agent for their expert opinion. If you decide to keep both coverages on your policy but still need to lower the price, try adjusting the deductibles.
Cost of SR22 Insurance Deductibles
A deductible is an amount you pay before your car insurance activates. If you have a comprehensive collision deductible of $500, that $500 is your responsibility.
If you drove your car into a tree, you'd have to pay $500. After paying $500, the insurance company could cover the rest of the damages to your vehicle.
Deductibles are adjustable. You can have a $0 deductible, $100 deductible, etc. The lower your deductible is, the higher your insurance premium will be.
Carrying a $0 deductible will usually mean a policy premium increase of $100 or more! Whereas carrying a $1,000 deductible could save you $100 or more.
The trick to finding the perfect deductible is to get multiple quotes. Have the insurance agent quote you with varying deductible amounts, and notice how much savings you'll be able to receive.
If the savings for a higher deductible is significant, it could be your best option. Just make sure that you don't choose a deductible that's so high you won't be able to pay it.
If choosing a $1,000 deductible means you won't be able to use your car insurance, it's not the right choice for you. Instead, you might want to stick with the middle ground number, such as $500 or even $600.
You should also start an emergency savings budget. You'll always have funds on hand if you need to pay for a deductible or something else.
Have Peace of Mind Knowing You're Covered
Money comes and goes; what matters is your quality of life. Stressing about obtaining SR22 insurance isn't a healthy way to live. You deserve to have peace of mind knowing you're covered today.
Are you ready to get your coverage? Let us help.
SR22 Savings is committed to helping drivers just like you find affordable coverages and fast. Since we have access to dozens of insurance providers, we can shop for the best SR22 insurance cost.
So what are you waiting for? Text or call one of our trusted agents today, and receive your free SR22 insurance quote.