When you are wondering what SR 22 insurance is, chances are you have the need to know what it really means to need it and how it can affect you.  SR 22 insurance doesn't necessarily mean that something bad has happened to you, however there was something that has caused you to need it in order to keep your drivers license and/or auto insurance.

There are several reasons why you would need SR22 insurance, such as an at fault accident where you didn't have auto insurance, a DUI or DWI conviction or other financial constraint that the court system has required you to maintain this type of auto insurance in order for you to keep your drivers license.

While the laws in each state vary as to the specifics of what is required, as do the requirements of the court, there are some basics of SR 22 insurance that you should know about.

If you have been ordered by the courts to get and maintain SR 22 insurance, you still might have questions about why you would need it. There are several reasons why you would be required to have it. Since each state has different laws and regulations related to auto insurance coverage, there are some differences in each state. However, there is some general reasons why you would need SR22 insurance.

At Fault Accident With No Auto Insurance

This is one of the major reasons why you would need SR 22 insurance. If you failed to have or maintain auto insurance coverage and have been involved in an at-fault accident (you were held responsible for the accident), the court system would require you to obtain and have SR 22 coverage.

The coverage is nothing more than basic auto insurance, however since it is court ordered, the insurance company is required to report to the court that you have the state required minimum insurance. This also requires the insurance company that you choose to report if you fail to make a payment, have another accident, or let your coverage drop.

If you fail to make an insurance payment or drop your coverage, unless you have other coverage through another company, you can face harsh penalties. Most times those penalties could be fines, court costs, loss of your drivers license and potentially jail time.

DUI/DWI Conviction and SR 22 Insurance

Another primary reason that the court would order you to have SR 22 insurance form would be if you have been convicted of a DUI (driving under the influence) or DWI (driving while intoxicated).

One of the penalties for the DUI/DWI conviction would be that you lose your drivers license. Although this doesn't occur in every state for a first time conviction, the potential is there for it. With the conviction, chances are you would lose your auto insurance coverage once the conviction is reported to your current insurance carrier.

There are generally two things that can occur once your insurance carrier finds out about your DUI/DWI conviction. The will either raise your rates, which will happen no matter what, or they will drop your coverage. If they drop your coverage, the court will require you to maintain SR22 insurance.

No matter what the cause of your need for SR 22 insurance, you will need to prepare yourself that it will cost you more than regular auto insurance coverage. There is generally no way around this fact. Also, prepare yourself for frustration in dealing with some of the automobile insurance companies. Most companies don't offer SR 22 insurance coverage.