There are generally two different ways to go about obtaining an SR22 insurance policy: through your current insurance provider or through a 3rd-party insurer. Read on to learn why purchasing an SR22 policy through your current provider may not be the best course of action for you.
SR22 Coverage Through Your Current Insurance Provider
There’s a good chance that your current insurance provider can add SR22 coverage to your current insurance policy. However, before you pick up the phone and give them a call, you should think twice.
Insurance companies use a number of factors in determining the rates they charge their customers for the desired coverage. A few of the more basic factors that nearly all insurance companies tend to use are:
- What are the ages and genders of the insured driver(s)?
- Are you a teenage girl who just got your license or a seasoned driver?
- Where will the vehicle be driven?
- Do you live and drive in a big metropolis or a rural setting?
- How is the vehicle typically used?
- Is this vehicle strictly for personal use or is it used for business purposes? Is it your primary vehicle or just for pleasure?
Age, gender and where you live are three important factors that every company uses to get a basic — that is, ‘statistical’ — idea of the risks you might pose.
In addition to these most basic factors are things that tend to vary from individual to individual and each insurance company’s rating factors are a little different. These factors might include:
- How many tickets have you had in the past 3 years?
- How many accidents have you had in the past 3 years?
- Have you ever been convicted of a violent crime?
- Do you have any drug convictions on your record?
- Have you ever been convicted of driving while intoxicated?
As you can see, some insurance companies really delve into the details. It’s their responsibility to ‘know their customer’ and to manage the risk of their customers. They’re able to reduce the insurance rates of customers who have virtually stellar records and tend to penalize drivers who are statistically considered ‘high risk’ drivers. All of these factors are ‘plugged into an equation’ and out pops your insurance rate.
So, how do you know which factors are used to determine your insurance rate? In most cases, you’ll probably never know. Insurance companies’ rating formulas are company secrets and that means you’re at the mercy of your insurance company. Getting flagged on just one ‘high risk’ factor could lead to a really expensive rate increase.
Plus, if you happen to carry multiple policies (e.g. home, renter, life) with the same company, you could see your rates go up, across-the-board.
Maybe you’d be better-off going a different route…
Purchase an SR22-Only Policy Through A Third-Party Provider
Did you know, that in the State of Texas, you’re legally allowed to purchase more than one auto insurance policy? That’s right! In Section 601.079 of the Texas Transportation Code, it is stated that a driver may carry multiple policies if the sum of the policies’ coverages provide the minimum required amount of coverage.
You can purchase SR22 coverage through a third-party insurance provider to fulfill your SR22 insurance requirement. You keep the insurance policy you have with your current insurance provider and purchase a special ‘non-owner SR22 policy’ from a well-respected, state-licensed insurance provider.
Purchasing an SR22-only policy could wind up saving you hundreds — if not, thousands — of dollars.
To qualify for a non-owner SR22 insurance policy, you must keep your current insurance policy. That’s because a non-owner SR22 insurance policy provides coverage that is secondary to any current coverage and a non-owner policy assumes state-mandated minimum insurance requirements are being met by the primary insurance policy — the policy you already have with your current insurance provider.
To learn more about the benefits of purchasing a non-owner SR22 insurance policy, visit our non-owner SR22 insurance area.
For a quick, no-obligation SR22 rate quote, visit the Spartan Insurance SR22 website. They’re a leader in non-owner SR22 policies and can provide you with a free online quote in about a minute. In fact, the only questions you’ll need to answer are regarding your age, gender and location. That’s it!