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Driver’s Guide to Auto Insurance and SR-22 Addendum Requirements

Blue_(driving_in_Toronto)Auto insurance is meant to protect everyone who is out on the road, whether it’s a motorist, pedestrian, bicycle rider, etc., and provide a means of financial responsibility in the event of an accident that causes bodily or property damages. Though it’s common knowledge that most states make it mandatory for drivers to carry a certain amount of liability coverage or compensate for it in some other way, there are still many out there who choose to operate a vehicle without adhering to their state’s rules and regulations. This can come with serious consequences if caught, and lead to other insurance requirements such as an SR-22 addendum. Learn more about car insurance obligations and considerations below.

Your Financial Responsibility as a Driver

As a driver, you are required to be able to present proof of your financial responsibility in situations such as renewing your vehicle registration, after being pulled over for a traffic offense or when involved in a collision. Depending on the state you reside in, this proof may be in the form of an auto insurance policy, surety bond, self-insurance certificate or cash deposit made with the DMV. If it is discovered that you do not have the right amount of coverage in your possession or don’t have any at all, your driver’s license may be suspended and an SR-22 filing will have to be submitted before you may reclaim your driving privileges.

Types of Coverage to Consider

There are a few main types of coverage that you can select to make up your insurance policy, some being mandatory and some optional. These include liability, uninsured or underinsured motorist, collision, comprehensive, medical payments, towing and labor and rental reimbursement. It can be difficult choosing the right amount of coverage since you never know what might happen, but as a general rule of thumb, you want to make sure you meet the state requirements and that you are protected from loss and an overwhelming burden of debt in case an accident occurs.

Understanding the Factors That Will Affect Your Premium

Insurance companies will look at several factors to determine what your premium will be. Age, driving experience and record, gender, location, make and age of the vehicle and credit history will all weigh in on the rates you are quoted. In addition, those deemed as a high risk driver who are seeking an SR-22 addendum to go along with their policy can expect that to be a major consideration and cause an increase in premium rates. Luckily, there are also numerous ways to acquire discounts if you do your research and ask.

Finding an Insurance Provider

The key to finding affordable auto insurance whether you have a clean record or one with an SR-22, is to shop around before settling on an insurance provider. Not all companies will offer the same rates, so if you really want to get the best deal, you must be willing to put in a little work. Fortunately, there are websites that have made this process much easier by taking the information you put in and getting you multiple quotes to review within minutes. Also, keep in mind that not all insurance providers are willing or eligible to file an SR-22 on your behalf, so it is your responsibility to be honest about your circumstances from the beginning and sign up with a company that can provide exactly what you need.

Whether you’re looking for a standard auto insurance policy or one that incorporates an SR-22, find a reliable insurance provider that can answer all your questions and leave you knowing without a doubt that you are sufficiently covered.

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