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Things to Understand About SR-22 and SR-26 Forms

If you are familiar with SR-22 insurance coverage, it is probably because you either have it right now or have in the past. SR-22 insurance coverage is a unique type of policy that is often required for people with too many driving violations, but it is not something that is typically required forever. If you currently have this coverage, you should also familiarize yourself with a form called an SR-26. An SR-26 can be good or bad, and here are a few things you should know about this. 

What Is an SR-22 Form?

SR-22 is a form that your auto insurance company provides you with to prove you have insurance. An SR-22 form must be submitted to the DMV when it is required; otherwise, the person that needs it may lose his or her driving privileges. When the auto insurance company provides you with SR-22 coverage, they are taking on the responsibility to notify the DMV if your policy lapses, and this is when an SR-26 form is used.

Because an insurance company takes on this extra responsibility, they will charge a higher rate for this insurance. In addition, they also charge higher rates for SR-22 policies, because people who need them are typically high-risk drivers.

If you have SR-22 coverage, your insurance company will provide an SR-26 form at some point, and this will be sent to the DMV. It is usually only issued when a person's SR-22 insurance policy lapses. If you miss your auto insurance payment and end up with no auto insurance coverage, the DMV will know about this by the form they receive from your insurance company.

Is This the Only Time an SR-26 Form Is Used?

People who have SR-22 insurance may understand that SR-26 forms are not typically good things; however, this is not always the case. An SR-26 form is not only issued to inform the DMV that the person's policy has lapsed, but they are also issued when a person's SR-22 insurance requirements have been met.

When you are told you must have SR-22 coverage, you will be told how long the coverage must last. This may be as short as one year, but it may also be a lot longer than this. If you purchase this coverage and continue to keep it for the length of time you are told you need it, you will eventually no longer need the coverage. For example, if you are required to have it for three years, you will no longer need it after you have had it for three consecutive years. When you reach this point, your insurance company will have to fill out an SR-26 form and issue it to the DMV. This will let the DMV know you have met your obligations, and you can now go back to a regular auto insurance policy.

It's important to realize that you can switch insurance companies during the time you are required to have SR-22 insurance, but you should use caution if you do this. You must make sure that your coverage does not lapse. Therefore, if you are going to switch companies, make sure your new policy kicks in before your old policy ends. Anytime a lapse in coverage occurs, it causes your need for SR-22 insurance to start over from the beginning.

Having SR-22 insurance can cost more than regular auto insurance, but there is nothing you can do to get out of it. If you need it, you must purchase it. To learn more about this, call an auto insurance company like LA Insurance.