The SR22 & Car Insurance

An SR-22 is not insurance, but rather a form filed by your insurance company stating that you have purchased auto liability insurance. (Liability insurance pays for property damage or bodily injury caused by the insured in the event of an accident.)

In most cases, SR22s are required if you have gotten a DUI or DWI, have been at fault in an accident and were uninsured, have received too many tickets in a short period of time or have had your license suspended or revoked.

SR22 requisites vary from state to state and some states—Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania—don't require them at all. However, if you have an SR22 in one state and move to one of the aforementioned states, you must continue to meet the filing and liability limit requirements of your former state.

Because most offenses that require an SR22 also hike up auto insurance rates, it's an ideal time to shop for insurance to ensure you are paying the lowest price.

How to Buy Car Insurance

If you're not satisfied with your insurance company; you need to insure a new car or you'd like to find out how to get a better deal on car insurance, this information is for you. Use it to weed through the car insurance maze, and you'll be on your way to the most secure coverage money can buy.

1. Do Your Research

Since car insurance isn't exactly optional, we recommend you make things easy on yourself by shopping online. You can even sit at home in your pajamas if you want; just get comfortable. Log on to your computer and you're set to go.

Now:

• Find out what types of coverage your state requires—and at what levels. To find out your state's requirements, we recommend this page from the Insurance Information Institute (III). Remember, since insurance is regulated state-by-state, what you'd need in one state isn't necessarily what you'd need in another. So if you plan on moving out-of-state soon, be sure to check out the requirements where you're heading before you get there.
  
• Think about personal finances. While you want to make sure you're adequately covered, you don't want to get yourself in so deeply that you can't afford your car insurance premiums. If you feel you're already paying too much, take a look at your budget and determine what you can reasonably afford, either annually or monthly. Then keep this amount your goal as you shop online for car insurance.
  
• Find out what's on your driving record. By ordering a copy through DMV.org, you'll know exactly what you're up against when it comes to buying car insurance. A small fee may be required but, in most states, you can order online and save the hassle of waiting in line. Another Tip: You may also want to get a copy of your credit score, since insurers may use both your driving and credit histories to determine car insurance rates. You can also purchase these online from any of the three credit reporting agencies: Experian, Equifax or TransUnion.
  
• Determine what (if any) additional coverage you'd like to buy and set your deductible levels. If you're worried about totaling that new car, you might want to consider collision insurance. If, on the other hand, you're concerned about colliding with someone with no insurance, uninsured driver coverage might be just the thing.

  Your options are numerous, so read up on car insurance to get educated before you sign on the dotted line. Your deductible is simply the amount you pay out of pocket before your insurance company starts picking up the tab when you have an accident. The higher your deductibles are, the lower your car insurance premiums will be. $500 and $1,000 are common deductible levels for car insurance.
  

• Get the low-down on discounts. Do you have a great driving record? Are you a student with outstanding grades? Maybe you drive a car with a high safety rating? Have you ever taken driver's education? All these situations qualify you for driver discounts, which can really add up!

2. Gather Quotes

It's time to apply for car insurance by gathering quotes. You'll need the following information for this step:

• The name, age, sex and driver's license numbers of all drivers in your household
• Your car's make, model and year of manufacture
• Your current insurance policy
• Your vehicle registration
• The approximate number of miles you drive annually
• The purpose for which you use your car
• Where you park your car overnight

Now, fill out the quote box at the top of this page so we can start matching you with local car insurance agents. The application only takes a few minutes, but with the savings you'll experience, it's definitely worth a little time.

3. Check References

When you start receiving car insurance quotes, you'll want to check insurer references to make sure you're dealing with reputable companies.

Start with your state department of insurance, which you can find by clicking on your state here. Then go to an independent rating service, like A.M. Best for further information. Here you'll find customer service and financial stability ratings that may prove invaluable in choosing the right insurance company.

4. Review Offerings

Before you settle on a car insurance policy:

• Carefully review the quotes and policies you've received
• Make sure each policy includes the coverages you requested
• Ask yourself if the premium payments fit your budget
• Talk with each agent to find out how comfortable he or she makes you feel and determine the level of service each one provides

Remember, the cheapest policy isn't always the best. When it's time to file a claim, you need an insurer you can count on. Depending on what's more important to you, additional services may be worth a few extra coins.

5. Buy the Right Policy

Now that you've narrowed down your choices and chosen the policy that's right for you, your insurance agent will handle all the details. After all, that's what he or she is trained to do.

Make sure you have contact information so you can call your agent if you have questions when you receive your policy. Meanwhile, your agent should give you a temporary binder to serve as proof of insurance. Carry it with you, or in your vehicle, until your policy arrives by mail. Then file it away and substitute your proof of insurance card, which should be small enough to carry in your wallet.

A note of caution: Don't forget to cancel your previous insurance policy!

You're On Your Way!

Now that you know how to buy car insurance, you're on your way toward the right car insurance at the right price.

So take advantage of this information and let InsureMe shop your car insurance for you. The results might just surprise you!

Car Insurance: Your Questions Answered

Though going without it really isn't an option, car insurance isn't always the easiest subject to understand. To interpret your options and get the best deal, you need a basic understanding of how it functions and what to expect from your auto insurance company.

Since education is your best defense when it comes to buying auto insurance, InsureMe would like to answer some common questions on the topic. We hope you find this information useful as you search for the right car insurance policy.

FAQs

Why do I need auto insurance?

You need auto insurance for a variety of reasons. First, though each state determines its own coverage requirements, drivers in every state must carry proof of some type of auto insurance in order to drive. Second, auto insurance protects you from financial and legal obligation when you're involved in an accident. Depending on the situation, the coverage you choose and your state's insurance system, it may cover your expenses, those of the other party—or both.

What kind of coverage is included?

Auto insurance includes three broad coverage categories designed to protect you from loss.

• Property coverage: Pays for damage to or theft of your car
• Liability coverage: Covers others against bodily injury or property damage
• Medical coverage: Pays the cost of treatment, rehabilitation and sometimes lost wages and funeral expenses due to an accident

How can I find out which types of coverage my state requires?

Contact your state department of insurance, or read up on state laws at theInsurance Information Institute. On this page, you'll find comprehensive requirements listed state by state.

What determines my auto insurance rates?

Your premiums are based on how much risk you present to your insurance company; what it costs your insurer to conduct business, and how much money your insurer estimates it will need to pay all claims during the year. To best determine these answers, your insurer examines such factors as your age, the make and model of your car, your driving record, what kind of driving you do most, where you keep and drive your car, and even your credit rating.

Why do insurance rates vary so much from one company to another?

Depending on each insurer's claims history experience and cost of doing business, rates are set independently—and can vary widely. This is why it's so important to get several quotes before deciding on the right policy.

Is there anything I can do to reduce my car insurance rates?

Absolutely! Here are a few strategies you should discuss with your insurance agent:

• Establish a safe driving record
• Take advantage of money-saving discounts with credits such as defensive driving, driver training, anti-theft, low mileage, multi-car and long-time renewal
• Choose a higher deductible and pay more expenses out-of-pocket
• Drive safer cars
• Eliminate unnecessary coverage, taking into account your car's age and condition
• Look for group rates through employer-, credit union- or association-sponsored auto insurance programs
• Get several quotes and compare policies

Can my insurance company cancel my policy once I buy it?

Yes, but only if you don't pay your premium or your license is suspended while your policy is in effect. However, if either of these happens and your policy is cancelled, you're entitled to at least 30 days notice and a refund of the unused premiums paid, minus the cost of cancellation.

Can other people drive my car and still be covered?

Definitely! Since your auto insurance coverage is attached to your car rather than just to you, anyone who drives your car with your permission should be covered. However, check with your insurance company for more specific details.

Does my policy provide coverage when I rent a car?

Yes, most auto insurers today cover rentals under your standard auto insurance policy. However, if you also purchase insurance from the rental car counter when you go on a trip, that rental policy automatically supersedes your auto insurance policy. So make sure you know for sure what's covered before you purchase any additional, short term coverage.

What should I do if I have an accident?

Get a copy of the police report, take down the other party's insurance information, and call your insurance company right away. Your agent can help you determine whether or not you should file a claim, depending on the situation.

If you have a camera handy, you may also want to take pictures of the vehicles involved for later proof of damages.

If I'm not at fault in an accident, will my premiums rise anyway?

If you have a good driving record with no history of accidents, it's unlikely that your premiums will increase solely due to one incident. However if the opposite is true, your insurance company may assume you're a hazardous driver and increase your rates.

How much do speeding tickets affect my rates?

Although different companies have different practices when it comes to raising rates, many states have laws against raising premiums after just one ticket. So, depending upon state laws and the severity of the violation, your rates may or may not go up with just one ticket.

My teenager just got his license and, when I added him to my insurance, my rates went through the roof! What can I do?

Adding your youngster to your policy was the right thing to do because it protects both him and you in case of an accident. Unfortunately, you should also expect a natural rise in insurance rates until he is older and more experienced at driving. Meanwhile, encourage him to drive defensively, wear his seatbelt, avoid distractions and keep his grades up. These actions can provide worthwhile discounts and help him establish a good driving record which, in turn, helps keep insurance premiums in check.

A lot of people drive uninsured. How can I protect myself?

Uninsured motorist coverage provides the protection you need from those who carry no insurance. With this type of coverage, your insurance company reimburses you for bodily injury, medical expense or death from an accident caused by a driver with no insurance, the driver of a stolen car or a hit-and-run driver. It does not, however, cover damage to your car; you need collision coverage for that.

How do I choose the right insurance company?

Your goal should be to find an insurer with a stable history and a high level of customer satisfaction. Check out their ratings at independent sites like A.M. Best or Moody's Investors Service, or contact your state department of insurance, which can also furnish this information.