Financial responsibility for high-risk drivers who operate a vehicle without insurance is highly essential to the State of Texas. This is where the non-owner SR-22 insurance comes into play. Also known as a Certificate of Financial Responsibility or CFR for short, this policy was created to keep non-insured high-risk drivers in check.
The SR-22 insurance is employed by the Department of Motor Vehicles (DMV) to verify that a driver has the state-required insurance.
Here’s a scenario of how this works:
An individual who needs SR-22 insurance is often a person who has recently been pulled over by the police and found to have no insurance. In such a case, the police officer issues a ticket, which means the individual has a court appointment to attend. The judge will request the SR-22 insurance at the court, which can be puzzling if the individual is not a vehicle owner.
However, as the driver of a vehicle, it is required to possess non-owners SR-22 insurance. This routine legal requirement is mainly triggered for violations such as driving without insurance, driving with a suspended license, a DUI conviction, accumulating excess points on your license, or being at fault for a collision.
SR-22 insurance can be quite expensive in Texas. This is not tied directly to the SR-22 itself – standard filings range between $15 to $40 – but due to the increase in insurance rate that applies to the violation that required the SR-22.
It is common practice for car insurance companies to set massive amounts to account for an accident's high possibility. The rate you get depends on the magnitude and frequency of your violations.
The main reason an SR-22 insurance filing will cost more than your basic coverage depends on the violation that required you to purchase an SR-22 policy in the first place. Car insurance companies in Texas determine SR-22 rates differently. Our research has shown that while Allstate has the highest average costing $3,289 per year, companies like USAA offer the cheapest average rate at $917 per year.
We compared four car insurance providers - GEICO, Allstate, State Farm, and Progressive. Our analysis showed that the median cost of vehicle insurance on Texan grounds is $1,075 every year, with an increase of about 75% for drivers with a DUI conviction.
To get the best cheap SR-22 auto insurance rates in Texas, we recommend comparing quotes for different insurers. Since auto insurance companies evaluate drivers differently, comparing quotes will onsite that you get the most competitive price. Ask about temporary car insurance Texas options if this is a short term need.
Ensure you ask an agent about the different discounts available when purchasing SR-22 insurance. There are specific discounts that depend on your vehicle type or driving record, while others, such as defensive driver course discounts, require extra information to earn.
Suppose you have been found guilty of certain vehicular violations in Texas, such as multiple traffic offenses or driving under the influence, or refusal to consent to a blood-alcohol test. In that case, it is mandatory to reinstate your license with SR-22 insurance by filing an SR-22 form with the Department of Public Safety in Texas.
Your SR-22 insurance, per Texas liability insurance stipulations, must include these limits:
The duration of time required to maintain SR-22 insurance can differ, but the standard period is 24 months after the date of your conviction in the state of Texas.
If your insurance policy is canceled or lapses during this period, the insurance company is required by law to inform the state. Drivers who fail to file a new SR-22 form after nonrenewal or cancellation can have their license and registration suspended.
This means they will have to purchase a new auto insurance policy and pay a second reinstatement fee, so it is imperative to avoid gaps in coverage.
When the duration for the SR-22 policy ordered by the court has elapsed, the onus is on you to inform your insurer the form doesn't need to be filed anymore. If you don't do this, your auto insurance company will continue filing the SR-22 policy with the Texas Department Of Public Safety.
In some situations, the court might mandate you to purchase SR-22A insurance to recover your license. SR-22A insurance is specific to a small number of states, including Texas, and it requires payments in six-month installments instead of the usual monthly billing for the standard SR-22 policy.
SR-22A insurance is often required if you have been caught in violation of driving without insurance or Texas financial responsibility law on multiple occasions.
Suppose the state mandates you to file an SR-22 policy to reinstate your license, but you don't own a car. In that case, you can exercise the option of purchasing a non-owner SR-22 insurance policy to fulfill your state-required obligations. In Texas, the non-owner SR-22 policy provides liability coverage that satisfies the state's requirements and provides all the coverage you need when driving a vehicle that is not registered under your name.
Since it is restricted to liability coverage and you presumably drive less frequently when you don't own a car, you can expect lower rates for the non-owner SR-22 insurance than the owner's SR-22 insurance.
In Texas, the SR-22 is a financial responsibility insurance certificate required by the Texas Transportation Code C 601 to confirm that you have motor liability insurance. It can be issued by the majority of insurance providers and verifies that you possess the minimum liability insurance required by Texas law.
Insurance companies typically charge between $15 to $50 for an SR-22 insurance filing. In cases where you want to get your driver's license reinstated, a reinstatement fee of about $100 must be paid before submitting the SR-22 form to the Texas Department of Public Safety located in Austin.
For specific information pertaining to another state in question, please refer to the respective that are more in-depth.
The minimum duration for an SR-22 in the state of Texas is 24 months. This means that motorists must have minimum car insurance coverage for at least two years. Any time lapse in coverage will lead to a clock reset.
The SR-22 form is not actual insurance but rather a certificate provided by your insurance agency to prove to the courts that you own auto liability insurance.
If you don’t own a vehicle, you are still required by law to have an SR-22 auto insurance policy in place. In cases where you rent or borrow a car and get into an accident, the victim can hold you liable for property damage and personal injury claims.
Your SR-22 insurance cost depends on your driving history. Some insurers provide the certificate for as low as $9 per month. However, drivers with at least one DUI conviction can lay as much as $270 per month based on our rate analysis. There is also the extra cost of processing the SR-22 form.
An SR-22 policy by itself does not increase your insurance rates.
On average, your rate will increase by about 89% if you have a DUI conviction. That should translate to an addition of $1300 on top of your introductory rate. With an FR44 or SR-22 policy, the insurance company will ensure you purchase the required amount of coverage to comply with directed insurance requirements.
The inflated cost of SR-22 is more likely due to your driving violation than the state filing fee. Multiple traffic violations, an accident, or a DUI will lead to inflated insurance rates. Shop around to get the best price.
If you don’t own a car or drive at all, it is imperative to file a non-owner SR-22 policy to fulfill your responsibilities with the state. It is a state-mandated certificate that demonstrates to the law that you have the required legal liability limit to restore your license.