SR22 vs. Regular Auto Insurance in Colorado

After serving a conviction for driving under the influence (DUI), you may feel ready to return to the roads in your vehicle. But you may be surprised to learn that in Colorado, you need to obtain SR22 insurance in addition to regular auto insurance.

If you’re wondering what the difference is between the two, this blog can help. Read on as we compare SR22 vs. regular auto insurance in Colorado and explain what it means for you.

Core Purpose and Function

One way that these two differ is in their primary purposes. When you pay for premiums for a standard auto insurance policy, your insurer will provide coverage for incidents such as accidents, theft, or other damage, up to your policy limits.

The policy’s main goal is to provide financial protection for you and others involved in an incident. Regular insurance is a proactive measure that most drivers maintain continuously to manage personal risk and comply with state financial responsibility laws.

On the other hand, an SR22 is not a policy. It is a certificate of financial responsibility, which your insurance provider files with the Colorado Division of Motor Vehicles (DMV) on your behalf. The SR22 shows that you carry at least the state-mandated minimum liability insurance.

It serves as a monitoring tool for the state, confirming that a high-risk driver stays in accordance with the law by maintaining the required insurance. The SR22 itself offers no protection; the protection comes from the underlying auto insurance policy.

Who Needs Each Type of Coverage

The path to securing insurance is also significantly different between the two. Any licensed driver who owns or operates a vehicle in Colorado must have regular auto insurance to comply with the law. The process is straightforward: you shop for a policy that meets your needs, purchase it, and keep it active.

It is a universal requirement for the privilege of driving on public roads. You simply need to find a provider, get a quote, and pay to be legally insured.

Conversely, an SR22 is not a universal requirement. The DMV or a court imposes this mandate for certain drivers who have committed serious traffic violations. In addition to a DUI conviction, you may also need an SR22 in Colorado if you drove your vehicle without insurance or were involved in an at-fault accident while uninsured.

In these cases, the state requires extra assurance that you will remain insured for a specified period. It will mandate the SR22 filing as a condition for reinstating or retaining your driving privileges.

The Process of Obtaining Coverage

Getting regular auto insurance is a direct consumer transaction. You can contact multiple insurance companies, provide your information, and receive a policy quote.

If you agree to the terms and price, you can purchase the coverage immediately. The insurance company provides you with proof of insurance, such as an ID card, and your responsibility is simply to keep the policy in good standing by paying your premiums.

Obtaining insurance with an SR22 requirement involves an extra step. First, you must find an insurance company willing to file an SR22 certificate with the state of Colorado. Not all insurers offer this service, as it involves additional administrative work and tends to involve higher-risk clients.

Once you find a suitable provider and purchase an auto insurance policy, the insurer will then submit the SR22 form directly to the DMV. You cannot file this form yourself. The state must receive this official documentation from the insurance company before it reinstates your license and restores your driving privileges.

Impact on Insurance Costs

SR22 and regular auto insurance in Colorado also differ in terms of their impact on your insurance costs. Companies base the cost of a standard policy on a range of factors, including your age, driving record, vehicle type, and location.

A driver with a clean record typically enjoys competitive rates from a wide array of insurance providers. The market is broad, allowing for extensive comparison shopping to find the most affordable premiums for good drivers. You can better control your costs by adjusting coverage limits and deductibles.

Although it is a good idea to shop around for SR22 quotes, it usually leads to higher insurance costs. This increase comes from two sources. First, insurers charge a small, one-time fee for filing the SR22 form, which can be up to $50.

However, the more significant cost increase stems from the underlying violation that triggered the SR22 requirement. That violation places you in a high-risk category, leading to much higher base premiums for your actual auto insurance policy.

The End of the Requirement

With regular auto insurance, there is no formal “end” to a requirement beyond your personal need for coverage. You simply maintain your policy for as long as you own and operate a vehicle. Your rates may fluctuate at each renewal based on your driving habits and other factors. It is an ongoing part of responsible vehicle ownership.

However, the SR22 requirement has a specific expiration date. After you have successfully maintained the SR22 for your entire mandatory term without any lapses, your obligation to the state is complete. Usually, drivers find that this ends after three years.

It is your responsibility to confirm with the Colorado DMV that your requirement period has ended. Once confirmed, you can then notify your insurance company that they no longer need to maintain the SR22 filing on your behalf. At this point, you can transition back to being a regular insurance customer, and if you have maintained a clean driving record, you will likely see your premiums decrease significantly.

Understanding the differences between SR22 filings and regular auto insurance empowers you to manage your state requirements effectively. Although the SR22 adds a layer of oversight, the core need remains the same: maintaining proper liability coverage. Over time, consistent and safe driving is the key to resolving the requirement and returning to standard insurance rates.

If you’re looking for SR22 insurance quotes in Colorado, Serenity Group can help. We specialize in helping Colorado drivers find affordable options that will allow them to fulfill all state mandates while avoiding financial headaches. Contact us today to receive personalized quotes and expert guidance for your insurance needs.