What is a Certificate of Financial Responsibility?

Nov 09

Despite being known by the general public as “insurance”, the SR-22 is not really one. The SR-22, also known as the Certificate of Financial Responsibility (CFR), is a certificate or verification filed by your car insurance to your state as proof that you have coverage. This will be requested from you after you have committed certain violations or a succession on them. When you have insurance and are required by the court to carry an SR-22, it will then be added to your policy, while those who are uninsured will be quoted for a policy with the additional SR-22.

The cost of an SR-22 would vary according to each state, but it would generally be around $25, and for uninsured drivers that fee will be included in the Progressive quote given to you by your car insurance provider. Being required to carry an SR-22 would also mean you are required to carry car insurance, and purchasing one will depend on several factors that insurance companies check to rate which policy will suit you. As Habush Habush & Rottier S.C.® indicates on its website, many other car insurance companies consider drivers with SR-22 are being riskier clients and would therefore increase their rates in order to reflect this risk.

Contrary to what most people believe, SR-22 does not really last very long. Depending on your state, it may only take three years to clear your record along with any other traffic violation related to the SR-22. During the three years, you will have to continue your coverage, and in the event of insurance lapse or cancellation your license may be suspended following a report made by your insurance company to the DMV. It is always best to avoid carrying SR-22. Make sure to avoid drinking and driving, since DUI/DWI are the most common reasons for SR-22. Also, make sure you have car insurance, since it already proves you are financially responsible. Lastly, make sure to drive safely. Causing even a minor traffic violation can affect your insurance premium.

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