When you need an auto insurance policy that requires an SR-22 policy, you must keep this coverage for as long as you are told you need it, such as for three years. If you cancel the policy or if the insurance company cancels it, you could experience problems, and here are some important things to understand about canceling an SR-22 insurance policy.
Why an insurance company would cancel it
After buying an SR-22 policy, there are a few reasons the insurance company would cancel the policy. The main reason is usually that the policyholder fails to pay the premiums for the policy on time. There are due dates for insurance premiums. If you buy a policy, it is your responsibility to make sure that you pay the premiums by these dates, and a great way to make sure you do not miss a payment is by setting up automatic payments for your insurance premiums.
Problems you could experience if you allow a lapse
If you end up missing a payment and that causes the insurance company to cancel your policy, the insurance company will immediately file an SR-26 form with the DMV. This form simply states that the SR-22 auto policy you had is no longer in place. When the DMV finds this out, they will suspect or revoke your driving privileges, and you will no longer be able to drive legally.
A second issue you will experience is that you must start all over with the timing requirements when you find a new company to purchase SR-22 insurance from. If you needed the SR-22 coverage for three years and had coverage with your original company for two years already, you will have to buy a new policy for another three years, as the time requires the policy to run consecutively for the entire time frame requirement.
How to avoid a lapse
It is not hard to avoid a lapse in coverage if you set up automatic payments, but there are other ways, too. For example, you could pay for the entire policy in full upfront if you have enough cash, or you could simply make a habit of paying your insurance premiums every time they are due.
If driving is important to you and you do not want to risk getting behind the wheel without a legal and valid driver's license, you need to keep your SR-22 coverage for as long as necessary. If you need a policy, you can get one by contacting any auto insurance company that sells this type of coverage.Share