What are the differences in price between a non-owner policy and a conventional SR22 policy?

The price difference between a non-owner SR22 policy and a conventional SR22 policy (attached to a vehicle owner’s policy) largely depends on several factors, including the reason for the SR22, the driver’s previous driving record, and the insurance company’s pricing policies. However, we can discuss some general trends and reasons for price differences:

Non-Owner SR22 Policy

  • Typically Cheaper: Non-owner SR22 insurance policies are generally less expensive than conventional SR22 policies because they do not cover physical damage to a vehicle that you own. These policies only provide liability coverage, which pays for damage or injuries you cause to other people or property while driving.
  • Limited Coverage: The coverage is limited to liability insurance, and it kicks in only when you’re driving a vehicle not owned by you. This limited coverage reflects in lower premiums.
  • Designed for Drivers Without Cars: These policies are specifically for individuals who do not own a vehicle but are required to prove financial responsibility to the state, usually after a driving infraction like a DUI or driving without insurance.

Conventional SR22 Policy

  • More Expensive: Conventional SR22 policies are attached to a vehicle owner’s insurance policy and cover both liability and, optionally, comprehensive and collision for the owned vehicle. The inclusion of physical damage coverage for the vehicle makes these policies more expensive.
  • Broader Coverage: Since these policies are for vehicle owners, they offer a wider range of coverage options, including liability, comprehensive, and collision coverage, which adds to the cost.
  • Factors Affecting Cost: The cost of a conventional SR22 policy is influenced by the vehicle’s value, the driver’s record, the coverage amounts, and the insurance company’s rates. High-risk drivers or those with expensive vehicles can expect significantly higher premiums.

Price Comparison

  • Quantifying the Difference: The exact price difference can vary widely based on individual circumstances and location. On average, a non-owner SR22 policy might cost a few hundred dollars per year, while a conventional SR22 policy could cost significantly more, especially if comprehensive and collision coverages are selected.
  • Additional Costs: Both types of SR22 policies may involve a filing fee (usually a one-time charge) and higher premiums due to the SR22 requirement. The driver’s risk profile, including the reason for the SR22, will significantly impact the overall cost.

It’s crucial for individuals requiring an SR22 to get quotes for both non-owner and conventional SR22 policies (if they own a vehicle) to compare costs. Shopping around and comparing offers from various insurance providers can help find the most cost-effective solution for meeting state SR22 requirements.