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Overview
To meet the state of Texas' SR-22 insurance requirements, you must purchase a special type of insurance. SR-22 insurance is designed for drivers who have been convicted of drug, alcohol, "no insurance" and other major traffic violations in Texas.
Identification
SR-22 is a basically a special type of endorsement on auto liability insurance. It provides proof that the driver is covered by at least the minimal level of insurance. The insurance company provides the same type of auto liability insurance as they would for any other driver in Texas. However, the insurance company is required to notify the Texas Department of Public Safety (DPS) if the driver's SR-22 policy is canceled or lapses.
Insurance Coverage
This coverage includes: $25,000 per a person for bodily injury or death in an accident, $50,000 for liability or negligence in an accident and $25,000 for any property damage. This type of insurance coverage is called 25/50/25, and it is the minimum standard requirement for auto liability insurance in Texas.
Consequences
If the convicted driver doesn't buy SR-22 insurance, then DPS can revoke their driver's license and suspend the car's registration. The driver must keep this SR-22 insurance in good status for 2 years in order to eventually return to the regular insurance pool.
Considerations
Often times, if the driver had an existing auto insurance plan with a competitive price, the insurance company will cancel it. The driver then will have to sign a new SR-22 plan at a higher rate. Some insurance companies consider SR-22 drivers to be too high a risk, and so the driver has to find a new insurance company.
Pricing
The insurance company charges a special premium price for the SR-22 insurance. They may add an extra $25 to $75 in fees along with the normal monthly insurance rate. Other companies may charge double the price of regular auto liability insurance. Prices vary, so compare several quotes from different insurance companies to find the best price.
Expert Insight
Some insurance companies also offer same day service for filing the necessary SR-22 forms. Talk to a lawyer to figure out the best course of action. Depending on the case, you may need to pay extra fees if your Texas driver's license is already suspended.
Also, make sure your address is up-to-date with the DPS so you always receive all written communication about your case. SR-22 insurance policies vary state to state, so what applies in Texas may not apply elsewhere.
