Should you Sell Your Car to Save Money on SR22 Insurance?

Deciding to sell your vehicle to save money on an SR22 policy involves considering various factors. Let’s discuss the advantages and drawbacks of this decision:


1. Lower Insurance Costs: Non-owner SR22 insurance is typically cheaper than an SR22 policy for a car owner since it only covers liability (damage or injury to others) and not comprehensive or collision damage to the vehicle you’re driving.

2. Avoid Depreciation: Vehicles constantly lose value. By selling, you’re getting out of a depreciating asset.

3. Eliminate Vehicle Expenses: Owning a car includes costs like maintenance, repairs, registration, and possibly loan payments. Selling your vehicle eliminates these ongoing expenses.

4. Potential Lump Sum: Selling your vehicle provides a lump sum of money that can be used to pay off debts or other immediate financial needs.


1. Lack of Convenience: Without personal transportation, you’ll rely on public transit, walking, biking, or rideshares, which may not always be convenient.

2. Possible Increased Commuting Costs: If you don’t have easy access to public transportation and frequently need to use rideshare services or rent vehicles, your transportation costs might even increase.

3. Flexibility: Having your own vehicle offers flexibility, allowing spontaneous travel and emergencies without relying on alternative transportation.

4. Future Vehicle Purchase: If you decide you need a vehicle again, purchasing one, especially if your credit took a hit due to the reasons you required an SR22, might be costlier than maintaining your current vehicle.


1. Your Dependency on the Vehicle: If you live in a city with robust public transportation, you might not miss your car. However, in more rural areas or places without efficient public transit, not having a car can be challenging.

2. Reason for SR22: If the SR22 is a result of a DUI or another serious violation, it might be beneficial not just financially, but also personally and socially, to take a break from driving.

3. Duration of SR22 Requirement: Most states require an SR22 for about 3 years. Think about if you’re willing to be without a car for that duration.

4. Financial Situation: Analyze your financial standing. If you’re in a tight spot, the immediate financial relief from selling your car and reducing insurance costs might outweigh the drawbacks.


Whether to sell your vehicle to save on an SR22 policy is a deeply personal decision, hinging on your financial situation, where you live, and your transportation needs. Weigh the pros and cons and consider consulting with a financial advisor or counselor, especially if your SR22 requirement stems from a serious incident like a DUI. They can offer tailored advice based on your circumstances.