Explain SR22 insurance

 

Q: Can you explain SR22 insurance to me? I have been with my car insurance company for a long time, and when I told them I would need an SR22, they cancelled my policy! What am I supposed to do?

A: Let me explain SR22 insurance to you–the primary aspect of it that will be affecting you is that it is risky. Its risk will make it difficult for you to get a car insurance policy and will make your rates high, but in any case, it may have been a good thing that your car insurance company cancelled your policy, because you now have the right incentive to shop around for your car insurance.

Most people pay more than they could for their car insurance because they don’t take the time to shop around for a new policy from a different company, which is something people should do often. Normally, the average amount of overpayment is pretty high–$400, although it can be less or more. If you have SR22 insurance, then you may find it hard to find a car insurance company at first, but if you do plenty of research and get a bunch of quotes, eventually you will probably find a deal you just weren’t getting with your old car insurance company.

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