Why Do You Need SR-22 Insurance in San Luis Obispo?

Owning a car in this day and age is an expensive proposition. First, there is the cost of the vehicle itself. If purchasing new, you will probably end up paying anywhere from $13,000 on up  for your vehicle, depending on the make, model, and available options. Then there is the cost of fuel. The average cost for regular unleaded gas in California right now is around $3.88 per gallon, so you can see how that could add up quickly! There is also the cost for the periodic maintenance - oil changes, tune ups, etc... - necessary to keep your vehicle in good running condition. Last, but certainly not least, is the expense of auto insurance.

Auto insurance in Pismo Beach (and everywhere else in California) is required by law. You cannot legally drive a vehicle without it. In fact, many dealerships will not even let you purchase one of their vehicles unless you can show proof of insurance.

I understand the need for auto insurance but what is SR-22 insurance?

SR-22 insurance is actually a misnomer. The SR-22 isn’t a type of auto insurance coverage at all, but rather an insurance form.  In a nutshell, the SR-22 is a document certifying that you do, indeed, have auto liability insurance. This certificate of proof of insurance is typically filed by your insurance company. So if someone tells you that you need SR-22 insurance in San Luis Obispo, or anywhere else in California, what they are really saying is that you need proof of auto liability insurance.

When do I need n SR-22?

Although there are exceptions, generally speaking an SR-22 is needed whenever a driver seeks to have his or her license reinstated after any infraction that resulted in their driver’s license being suspended. Examples of these infractions include DUI / DWI, reckless driving, or driving without insurance.

If you find yourself in one of these situations, you will be asked for the SR-22 at your local Department of Motor Vehicles (DMV) prior to your driver’s license being reinstated. To do this, you will need to contact your insurance company and ask them to send the SR-22 to the DMV. In addition, the following conditions may apply:

• The document must guarantee that the minimum amount of liability coverage has been obtained by the insured.
• Proof of insurance and an SR-22 must be maintained for three years from the date of reinstatement.
• The insurance policy the SR-22 is filed under must remain in effect in order for you to maintain your restricted license.
• If you switch insurance carriers during the three year period, you will need to have your new insurance company file an updated SR-22 with the DMV.