What is SR22 insurance vs a SR-22 bond?

The terms “SR22 insurance” and “SR-22 bond” are often used interchangeably, but they refer to slightly different concepts. Here’s the difference between the two:

SR22 Insurance: SR22 insurance is a specific type of insurance policy that includes an SR22 filing. It is required for individuals who have been mandated by their state’s Department of Motor Vehicles (DMV) to obtain an SR22 filing due to certain violations or incidents, such as DUI/DWI, driving without insurance, or multiple traffic offenses. SR22 insurance provides the minimum liability coverage required by the state.

When you purchase SR22 insurance, your insurance company files the SR22 form on your behalf with the DMV or relevant state agency. The insurance policy itself includes the necessary coverage and acts as proof of financial responsibility. The insurance company is responsible for notifying the state if there are any lapses or cancellations in your coverage during the required filing period.

SR-22 Bond: An SR-22 bond, also known as a certificate of financial responsibility, is a financial guarantee provided by a surety company or bonding agency. It serves a similar purpose to SR22 insurance, providing proof of financial responsibility to the state. However, an SR-22 bond is typically an alternative option for individuals who are unable to obtain traditional auto insurance or who may not own a vehicle.

With an SR-22 bond, the surety company or bonding agency guarantees that they will cover the required liability amount on behalf of the driver. If the driver is involved in an accident or causes damage, the surety company will provide the necessary financial compensation.

It’s important to note that not all states accept SR-22 bonds as a substitute for SR22 insurance. The availability and acceptability of SR-22 bonds vary by state. It’s crucial to check with your state’s DMV or relevant authorities to understand the specific requirements and options available in your jurisdiction.

In summary, SR22 insurance refers to the insurance policy that includes the required coverage and SR22 filing, while an SR-22 bond is a financial guarantee provided by a surety company as an alternative to traditional insurance coverage in some cases.