Even if you don’t own a vehicle, for driving on the roads you are still required to carry an SR22 as per the statutory norms by the State Motor Vehicle Department. When the DMV suspends your driver’s license you can get your driver’s license reinstated after an SR22 is filed by your insurance company to prove your financial responsibility that you have the state’s minimum auto liability insurance. This is known as non-owners auto insurance.
What is an SR22 and why do you need it, when you don’t own a vehicle
You need an SR22 if you have been arrested and convicted due to but not limited to the following:
- Driving without Insurance Policy
- When you’re convicted because of Driving under influence
- When you had an at-fault accident, while driving without insurance
- Repeated traffic offenses and too many tickets in a short span of time
- When your license has been suspended or revoked for any specific reason
Duration to Carry on SR22 and its importance
The minimum duration is 3 year and again it depends upon your state’s requirement as outlined in your court documents. The most important aspect is that you must carry continuous insurance during the specified probationary period before your SR22 status can be removed. If your policy lapses even for as little as one day or is canceled, your insurance company is required by law to notify your state’s DMV immediately and your license will be suspended or revoked again. This would definitely cost you more money and time, something neither you nor us want to see happen. So it is always preferred to pay your SR22 policy premiums 3-6 months in advance to avoid this kind of problems.
Coverage of SR22 Policy
In general, this type of insurance policy only covers liability up to the limits purchased. It does not cover the vehicle that you are driving, only the liability that you the driver may cause if you are involved in an accident with another motorist or cause property damage.
Most insurance companies provide a "non-owners auto insurance policy" for people who drive occasionally but don't own their own car. Non-owners policies include most coverage options like liability, medical payments, uninsured/underinsured motorist etc. It should be noted that non-owners policies do not have collision and comprehensive coverage, towing reimbursement and rental reimbursement options.
If you are involved in an accident in a borrowed car, your friend's insurance would come into force first. If the accident was your fault and caused damage to the other driver's property is more than the liability limits on your friend's policy, your non-owners insurance policy would pay for the excess amount to the limit permitted by your non-owner’s policy.
Penalties for driving without SR22
Though the penalty may vary state to state there are some common penalties, if you drive without an SR22. Your vehicle gets impounded and your vehicle tag might be seized and heavy fines and additional fines will be imposed. Your suspension period might be extended for a longer duration and in the worst case scenario you might be imprisoned.
Having non-owner’s policy can protect you from unnecessary penalties and severe consequences if you happen to drive a borrowed or rented vehicle from accidents or loss.