Getting SR-22 insurance in Michigan is necessary when you are deemed a high-risk to insure. The process takes a bit of time, is more expensive than traditional insurance, but can be done fairly quickly in Michigan. Whether you are high-risk or not you have to maintain a certain amount of no-fault coverage if you plan to operate a motor vehicle legally.
No-Fault Coverage Requirements
There was a lot of thought that went into the development of the no-fault insurance coverage requirements. It eliminated the need for unnecessary litigation and argument about who was at fault. All people involved and hurt receive compensation for injuries. It makes the time to wait for payment much less. The one that is eventually found at fault enjoys a higher premium.
Michigan requires you to carry a policy that provides at least:
- $20,000 in bodily injury coverage
- $40,000 in multiple injuries
- $10,000 in property damage
What is SR-22 Insurance?
SR-22 insurance literally stands for “safety responsibility.” It is not an actual policy. It is just paperwork that verifies that you have an insurance policy. Your insurance company prepares it and files it with the appropriate motor vehicle agency as proof that you have an existing policy.
Any violation resulting in a suspension of driving privileges requires establishing a high risk policy and SR-22 proof of it. Convictions of DUI, reckless driving or even driving without insurance can draw the penalty.
There are times the court will require you to carry a policy and submit an SR-22 whether you own a vehicle or not. It will be stipulated for a certain number of years after the conviction. This is fairly common with DUI convictions. If you fail to make your insurance premium payments then the SR-22 is cancelled and the motor vehicle department will receive SR-22 paperwork. Your license is then suspended until you file a new SR-22.
How to Get an Insurance Policy with SR-22 Documentation
If you are required to have high-risk insurance and provide SR-22 documentation then you will have to start the search for a company that will be willing to offer you coverage. You really need to make sure that it is adequate for the coverage that the state requires. Be prepared for it to have a high price tag, at least initially.
Since time is of the essence you want to make sure that you deal with an insurance company that will get your documents prepared and sent in to the motor vehicle department timely. Missing deadlines can spell disaster if you are trying to stay in the good graces of the curt and earn your driving privileges back.
The better options are usually with more well-known nationwide insurance companies. You need to make sure that you are talking with someone that is familiar with the laws of SR-22 in Michigan. States can vary in both coverage requirements and time limitations.
When you get the required insurance coverage and verify it with SR-22 documents, it will eventually get you in a better position of getting past the issues and getting full driving privileges back. After about 3 years of paying the high-risk premiums you may get to drop down to normal coverage with normal rates. It may seem overly expensive and a burden at the time, but getting this coverage and maintaining it without fail will get you free of the extra expense sooner than later.
The whole reasoning behind SR-22 is so the insurance company is aware of the higher risk they’re taking on in insuring you, and that the motor vehicle department can be confident that you have the proper amount of coverage.
- What Happens If I Pay My Car Insurance Late?
- I Just Received a Non-Renewal Notice – What Do I Do Now?
- Caught Driving Without Car Insurance in Michigan
Tags: MI Car Insurance