SR22 insurance is used in the state of Louisiana to monitor the insurance of risky drivers, and to protect the citizens against them. Auto insurance companies in that state must file the SR22 with the state as evidence that the drivers are maintaining their auto insurance as required by law. The SRS22 certificate is also referred to as a certificate of financial responsibility.
The SR22 takes three forms:
• The certificate will cover the financial responsibility of a driver who is not the owner of the vehicle.
• The certificate will cover the financial responsibility of a driver who owns the vehicle.
• The certificate will cover the financial responsibility of a driver who may or may not own the vehicle.
• The driver has had what are known as safety responsibility suspensions; as an example, he/she may have been an uninsured driver who was party to an accident and became delinquent on the fees that was assessed for him as a result of the accident.
• The driver has had many unpaid judgments that arose from suspensions of driving privileges in the past.
• The driver’s license was revoked.
• The driver is subject to mandatory insurance supervisions.
The process to file is as follows:
• The driver first requests an SR22 from a state-licensed insurance company.
• The driver pays the processing fee requested; these fees vary with the company, so the diver is well advised to shop around for the best quotes.
• The driver must purchase at least the minimum liability coverage required by the law; that is $10,000 for injury or death of 1 person, $20,000 for the injury or death of 2 or more people, and property damage for $10,000.
• When the insurance company receives the request, it sends that request to the central office which files an sr22 with the state.
• If and when accepted, the driver will receive the proper froms the insurance company together with the Public Safety department acceptance letter.
• The driver is under obligation to maintain the current SR22 for at least 3 years. If he/she fails and the coverage lapses, the insurance company will advise the state which will suspend the driver’s license, until such time as he/she reinstates the insurance coverage.
Louisiana will accept out of state SR22 insurance as long as the insurance company will, in writing, certify that the policy meets with the requirements of the laws. If the driver is required to file for SR22 insurance in Louisiana, he/she will have to request for it from a state licensed auto insurance company.
A driver not wanting to obtain a new policy could instead deposit from $30,000 through $50,000 in securities or cash, with State Treasurer. Alternatively, he/she could file real estate bond or surety bond through the court process.