The idea of maintaining SR-22 insurance continuously is one that strikes fear into the hearts of Iowa drivers. Some drivers may argue that this insurance policy hurts their pocket or unforeseen circumstances that may stop them from driving again. This is why you need a little education on what an SR-22 is, who needs it, the cost, and how to get it.
The SR-22 certificate is a routine legal document often required by the State or Department of Motor Vehicles when a driver has been convicted of driving uninsured, driving while intoxicated, driving under the influence, and gaining negative points, or causing an accident.
The Department of Motor Vehicles may ask you to present the SR-22 insurance certificate as proof of financial responsibility. Although SR-22 is not insurance, it can serve as verification of minimum liability coverage for high-risk drivers. If you are involved in a collision, drive uninsured, drive under the influence, or often violate traffic laws, you may need to provide SR-22 to the DMV.
The certificate is also a means of verifying that drivers own the state's liability limits as mandated.
Although it might take some time, finding the best insurance rates with an SR-22 certificate is worth the hassle. Below, we explore how much SR-22 insurance costs in Iowa and the process of purchasing one.
Your state's minimum liability requirements are the biggest factor that determines the cost of your SR-22 insurance. In Iowa, your minimum liability coverage must include:
- $20,000 for physical injury to one individual
- $40,000 for bodily injury to multiple individuals
- $15,000 for property damage
Car insurance is quite costly in Iowa. This can be surprising because the standard amount for purchasing SR-22 insurance is a processing fee of $35. This proves that your insurance rate depends on the type of violation that warranted you to file for SR-22.
Auto insurance companies charge risky drivers inflated rates to cover for the high possibility of a payout claim. The spike in price depends on the regularity and severity of your violations.
Iowa SR-22 insurance must be maintained for two years. Drivers in Iowa are required to carry minimum liability coverage for 24 months continuously. Any lapse during this period will cause the clock to reset.
After applying for SR-22 insurance, your auto insurer will file the form with your state DMV to obtain the SR-22 certificate. Failure to obtain the SR-22 policy may result in license suspension, or your driving privileges may be rescinded.
Additionally, you will be required to pay a second reinstatement fee. It is essential to remember that your car insurance company will inform the state of your default on your insurance at any point. Even If you move out of the state, you are expected to opt for an out-of-state filing.
If you cannot afford the monthly payments, inform your insurance agent before the due date. You can request an alternative payment plan or inquire about any discounts available to high-risk drivers. Subsidized plans are a common compromise for insurance providers.
For Drivers With Insurance
If you currently own car insurance, you will find it easy to file for SR-22 insurance. Contact your auto insurance company and request for an SR-22 form to be filed with your local DMV. If your insurance agent declines this request, start looking for a new insurance company.
For Uninsured Drivers
Uninsured drivers have to pay extra when filing for SR-22 insurance. Due to your risky driving history, you may need to pay an upfront fee to cover the form's cost and the possibility of a payout claim. Some insurance companies may disqualify you from select insurance packages if you have SR-22 on your policy.
For Drivers That Don't Own a Car
Since you need present proof of insurance, it can be quite difficult to purchase SR-22 insurance if I don't own a vehicle. If you are not a vehicle owner, you will need to purchase a non-owner policy before applying for an SR-22.
While a non-owner policy is cheaper than regular auto insurance, it does not provide coverage for any damage to the vehicle.
Iowa law states that drivers must not have a blood alcohol content of 0.8 or higher. Punishment for a DUI or OWI violation includes license suspension, alcohol education course, or jail time.
Drivers with a good driving record typically pay less for auto insurance. Such drivers avoid infractions such as speeding tickets, driving under the influence, no-fault collisions, and many more. On the other hand, a terrible driving record will inflate your insurance rates.
The average increase in Iowa insurance rates are;
- 15% after a speeding ticket.
- 35% after causing a collision
- 41% after drinking under the influence.
The rates charged after these violations by auto insurers in the Hawkeye State is almost identical to national averages. Drivers with a good record can inquire about safe driver discounts.