Understanding Insurance Policies

Understanding Insurance Policies

Exposing Some Common SR-22 Myths

Samantha Reynolds

Auto insurance is essential for anyone that is wanting to drive on public roads and highways. However, there are numerous different types of auto insurance, and it can be common for individuals to be fairly uninformed about these different policies. In particular, SR-22 policies are commonly misunderstood, but if you have the following few myths refuted, you will find that you are far better informed about auto-insurance policies.

Myth: SR-22 Policies Are a Special Type of Insurance

There is a common misconception that SR-22 policies are a unique type of insurance coverage. However, this is not the case, as these policies are no different than other types of auto insurance. Rather, SR-22 policies are special because the insurance company will be required to file a notice with the courts verifying that you have the required auto coverage. Due to the fact that the insurance company must provide this type of documentation, it is common for providers to require these policies to purchased all at once. While being unable to make monthly premium payments may cause some financial stress, it is essential for preventing drivers from simply canceling their coverage once the notice is filed with the courts.

Myth: SR-22 Policies Are Only Required for Those Convicted of a DUI

There is a commonly held notion that these policies are only a requirement for those that have been convicted of one or more DUIs. However, there can be a variety of reasons why the courts would mandate you to have this type of insurance policy. Other common examples are being involved in an accident without insurance and receiving numerous speeding tickets in a relatively short period of time.

Myth: Having an SR-22 Policy on Your Record Will Permanently Raise Your Auto-Insurance Rates

Some individuals may be under the assumption that needing to purchase an SR-22 can cause their insurance rates to be permanently increased. While it is true that your rate for the SR-22 policy will be higher than for a traditional one, it will be possible for you to once again establish a safe driving record. As time passes without your receiving a ticket, being involved in an accident, or engaging in risky behavior, your insurance premiums will gradually decrease.

SR-22 policies can be ordered by the court when individuals have indicated that someone is a higher risk of causing accidents. Unfortunately, there are many myths concerning this type of coverage, but understanding that these are not special forms of insurance, that these policies can be ordered for a number of infractions, and that your insurance rates will gradually drop should help you to be better informed if you are required to get one of these policies.

Talk to a company such as Great Northern Insurance Agency for more information. 


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About Me
Understanding Insurance Policies

After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.