Reader’s Question:

When I read about auto insurance policies on the Internet, I always encounter SR-22. What exactly is this? I am from Albuquerque, New Mexico, by the way.

Maria

Albuquerque, NM

The reason why you always encounter SR-22 in automobile insurance discussions is because it is a car insurance form that is usually required to be filed by many state’s Department of Motor Vehicles (DMV) during certain situations. An SR-22 provides a state’s Department of Motor Vehicles proof that a driver abides by the minimum auto liability insurance requirements of the state where he lives in. Such instances where you’ll need to file an SR-22 form are being caught without the state’s basic liability insurance requirements or being caught under the influence of alcohol (DUI). In these situations, the license of a driver is typically suspended, and before he can have his license reinstated or have his car registered again, he will need an automobile insurance company licensed by the state (in your case, it’s Albuquerque, New Mexico) to file an SR-22 form on his behalf.

If in the event that an automobile insurance company ceases to provide auto insurance to the driver or that a driver’s auto insurance policy is terminated, the automotive insurance company must inform the state’s Department of Motor Vehicles about this. If this is the case, the license of a driver is also suspended until he files proof that he has auto insurance that is mandated by the SR-22. In most states here in the country, it is required for a driver to maintain an SR-22 from around three years to five years.

Also, even if you move to a different state, most states require that you abide by the requirements of the SR-22, in addition to the SR-22 minimum liability requirements of the state you move into.

But just a reminder, not all insurance companies offer to file SR-22 forms, so just check with your local auto insurance provider.

Tags: auto insurance, sr22 insurance