What Happens If You Let Your SR-22 Insurance Lapse?

Many high-risk drivers require SR-22 insurance to maintain their driving privileges. Navigating the world of SR-22 insurance can feel overwhelming, though, especially if you’re unsure about what happens if your coverage lapses.

Similar to standard auto insurance policies, severe punishments can result if your certificate of financial responsibility expires prematurely. This can be especially burdensome for those dealing with legal fees and navigating daily responsibilities without a personal vehicle. We aim to provide a comprehensive guide on what happens if you allow your SR-22 insurance to lapse and why maintaining continuous coverage is crucial for your driving future.

Introduction to SR-22 Insurance

SR-22 insurance is not an auto insurance policy in itself; rather, it is a certificate verifying proof of minimum liability insurance. This certificate is filed by your auto insurance provider and submitted to your state’s Department of Motor Vehicles (DMV) to ensure that you’re financially responsible and, thus, allowed to drive. It is commonly used as a legal punishment for severe driving offenses or several repeated traffic violations in a short period.

Who Needs SR-22 Insurance?

High-risk drivers required to carry SR-22 insurance will be notified by a judge or a state DMV. You may be required to file for SR-22 insurance through an insurance provider if you have committed any of the following offenses:

• Driving under the influence
• Driving without a license
• Reckless driving

You may also require SR-22 insurance if you were found at fault in a car accident and did not have insurance or received several tickets for the same offense in a short time.

How Long Does SR-22 Insurance Last?

The length of time an SR-22 insurance requirement stays on a high-risk driver’s record varies by the state in which they reside. Typically, SR-22 insurance requirements last between one to five years. Factors such as the nature of the traffic violation and local laws can influence this timeframe. It is crucial to maintain continuous coverage throughout the required period, as any lapse in coverage might result in legal or monetary penalties.

Causes of SR-22 Insurance Lapses

Several factors can lead to an SR-22 insurance lapse. Identifying common pitfalls of other high-risk drivers can help you avoid lapses in your auto insurance coverage. Here are five ways a person may cause an SR-22 insurance lapse.

Failing To Make a Payment

One of the most common reasons for an SR-22 lapse is failing to make a payment. When you miss a payment, your insurance company might cancel your policy, leading to a lapse. It’s crucial to be aware that even a single missed payment can have long-lasting consequences on your insurance history.

Making a Late Payment

Late payments can also result in a lapse. Consistently late payments could lead your insurer to revoke your SR-22 certification, causing you to fall out of compliance with state requirements. Additionally, repeated late payments can impact your credit score, affecting future insurance rates.

Failing To Renew Your Policy

Unlike standard auto insurance policies, SR-22 insurance does not automatically renew from year to year. If you fail to renew your policy before it expires, this can also result in a lapse of your SR-22 insurance. You must keep track of renewal dates and ensure that you always have coverage in place.

Canceling Your Policy Early

Canceling your policy before the SR-22 requirement is lifted can also cause a lapse. You must maintain your insurance for the entire required period to fulfill your legal obligations. Be sure to check with your insurer about any specific timelines or penalties associated with early cancellation.

Switching Insurance Providers

Switching providers without ensuring continuous coverage can lead to a lapse. Before making the transition, confirm that the new provider offers insurance to high-risk drivers and files an SR-22 form with the state. If there’s any gap between when one policy ends and another begins, it could result in serious penalties. Always confirm your new policy is active before canceling your old one to avoid coverage gaps.

Penalties for Letting SR-22 Insurance Lapse

Allowing your SR-22 insurance to lapse can lead to serious consequences, including legal penalties and increased insurance rates. In this section, we will explore these repercussions in detail.

License Suspension

Soon after your SR-22 insurance prematurely expires, a driver’s state DMV will be notified and respond by suspending or revoking their driver’s license. Your loss of driving privileges requires you to reinstate your auto insurance policy and pay a fee to the DMV.

Vehicle Impoundment

If you are pulled over by law enforcement as a high-risk driver without auto insurance, you will likely be arrested and have your vehicle impounded. This adds inconvenience and additional costs as you work to get your car back.

SR-22 Requirement Restarts

If your SR-22 lapses, the clock on your requirement period may restart. This means if you were supposed to maintain SR-22 for three years, letting it lapse could reset that period, prolonging the time you need to manage this type of insurance.

How To Reinstate SR-22 Insurance

If your SR-22 insurance lapses, you should act quickly to reinstate it. The first step is to contact your insurance provider to discuss your options. They can help you reinstate your policy and file the necessary paperwork with the state.

Prepare to pay any outstanding premiums and additional fees associated with reinstating your insurance. If your previous provider no longer offers coverage, you may need to find a new provider to minimize the duration of your lapse. Make sure to compare at least three quotes and research a company’s customer service before deciding.

What if I Can’t Afford SR-22 Insurance?

Although canceling SR-22 insurance may seem cost-effective, this action is much more troublesome than carrying out the certificate to full term. Allowing your insurance to lapse can lead to severe penalties, so it’s crucial to understand the causes of lapses and take proactive steps to maintain continuous coverage.

If your current policy is a financial burden, explore cheap SR-22 insurance online to find a solution that works for you. Serenity Group is here to help high-risk drivers find a tailored policy that suits your requirements and your budget. Contact our team today for more information.